This article provides a comprehensive list of income, expenses, and other transaction categories that are relevant to funds and investment entities. From loan fees and commissions to marketing expenses, each category includes a brief description and an example of the type of transaction that may fall under it. This list can be a useful reference for tracking and analyzing financial transactions related to a fund or investment entity. The example provided reflects the ideal support Verivest’s Fund Administration team would receive in order to accurately and easily record the entity’s transactions.
Name | Description | Example |
Amounts Due from/to Borrower | Amounts to be received from a buyer of an asset to whom the entity has loaned money
Amounts owed to borrower | |
Amounts Due from/to Investor | Amounts to be received from investors
Amounts owed to investors that are not income distributions | |
Amounts Due from/to Property Manager | Amounts to be received from a property manager
Amounts owed to property manager for items paid by PM | |
Amounts Due from/to Related Party | Amounts to be received or paid related to intercompany entities | |
Amounts Due from/to Servicer | Amounts to be received from a loan servicer
Amounts owed to servicer for items paid by servicer | |
Bank Fees, Bank Credit & Bank Interest | Fees charged by the bank for normal operations, fees refunded by the bank, and interest received from the bank | |
Broker Fees | Amount paid to brokers to execute transactions or provide specialized services | |
Capital Raise Fees | Fees paid for capital raising activities in order to provide additional capital to the fund | |
Capitalized Acquisition Fees | Acquisition fees related to the purchase or sale of applicable assets | |
Commission Expense | Commissions paid | |
Conference Fees | Fees paid to attend a conference | |
Credit Card Credit/ Refund & Payments | Amounts owed to credit card companies for transactions using the credit card account of the fund and any amounts refunded to the credit card | |
Custodial Fees | Fee paid to a brokerage firm for the services associated with the investment | |
Due Diligence Fees | Fees paid for due diligence background checks and independent verifications performed for the fund | |
Dues & Subscriptions | Payment for different subscriptions | |
Earnest Money Deposit | Amounts paid to confirm a contract | |
Errors (In and Out) | Amounts wired in or out of the bank account in error and returned | |
Escrow Fees | Fees paid to an escrow who holds and transfers funds during sale | |
Fee Income - Lien Release fees | Fees received upon payoff related to lien release | |
Fee Income - Other fees | Other service charges earned that do not fall into a more specific category | |
Financing Costs | Financing costs on notes, loans or other borrowings | |
Gifts | Gifts to investors, and others which are promotional in nature and in the course of trade and business | |
Inspection Fees | Inspections fees incurred for inspection required under the loan agreement | |
Insurance Expense | Property insurance and loan insurances paid |
|
Interest Payable - Noteholder | Periodic interest accrued on investor notes or other notes entered into by the entity | |
Interest Payable - Temporary Notes | Periodic interest accrued on temporary investor notes | |
Interest Receivable - Noteholder | Periodic interest income on notes funded by the fund | |
Interest Reserves | Interest funded by borrower in advance - either as collateral or to allow periodic interest payment advances | |
Internal bank transfers (non-deployment related) | Movements between the fund’s bank accounts that do not relate to the deployment of investor subscription cash | |
Investment Distribution | Distribution amounts received from an underlying investment owned by the fund | |
Investment Foreclosure - Real Estate Owned | Foreclosure on a property for which the fund had a secured interest in a loan | |
Investment Purchase - Funds, Equity, Direct Real Estate | Investment corresponding to an ownership interest in a fund
Investment corresponding to purchase of stocks of an entity
Investment corresponding to an ownership interest in a specific property | |
Investment Purchase- Real estate | Direct purchase of real estate by the fund | |
Investment Purchase - Loans | Loans originated by the fund | |
Investment Sale - Loans | Sale of loans originated by the fund | |
Investment Sale - Loans sold to Third Party / Loan Assignments | Assignment of loans originated by the fund to a third party | |
Investment Sale - Real Estate Owned | Sale of an REO property | |
Investments - Loan Draws and Draw Fees | Draws on existing loans and fees paid by borrowers for loan draws | |
Investments - Loan Paydown/ Payoff | Paydowns and/or payoffs on loans that the fund has originated | |
Investor Contributions (new and additional funds) | New or additional investor contributions into the fund |
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Investor Contributions (Preferred Equity) | Preferred Equity contributions for REITs | |
Investor Contributions (with Capital Calls) | Investor contributions for funds that have capital calls | |
Investor Deployments | The deployment of investor contributions to the fund’s equity | |
Investor Redemptions | The withdrawal of investor capital from the fund | |
Licenses and Fees | Licenses and fees necessary for the fund's operations | |
Loan Fees Receivable - Origination, Extension and Modification | Loan origination and/or extension fees owed to the fund | |
Loan Payments - Interest, Principal, Late fees, servicing and others | Loan payments received from borrowers | |
Line Of Credit Advance, Paydown and Interest | Line of Credit borrowings received from the bank (or intercompany entity) based on prior commitment to make loans to the fund up to a specified maximum, usually for one year, and any payments made on the line. | |
Marketing / Advertising expenses | Cost incurred in promoting the operations of the fund | |
Meals and Entertainment | Meals and entertainment expenses incurred related to entertaining a client, customer, or employee | |
Miscellaneous Expenses | Sundry expenses which are non-recurring and incidental expenses | |
Miscellaneous Income | Includes various sources of income which is not commonly received by the fund | |
Mortgage Loan Payments | Payments made against a mortgage loan taken out by the fund or entity | |
Notes Payable | Amount payable either on demand or at a fixed or determinable future date, with interest | |
Notes Receivable | Amount of promissory note to be received at a future date | |
Office Supplies | Small purchases that are needed for office employees. | |
Organizational Costs | The costs of organizing an entity if the firm incurs the costs specifically to create the entity | |
Payroll Expense | Payments made associated with hiring employees and independent contractors for your business | |
Pending Investments | Investments not active as of last day of period | |
Permanent Noteholders - Contribution | Investor contributions into a note issued by the fund | |
Permanent Noteholders - Redemption | Investor withdrawals/ redemptions from a note issued by the fund | |
Postage & Delivery | Courier and mailing services expenses | |
Preferred Dividend Income Payments | Dividend payments to the preferred equity investors of a REIT | |
Prepaid Expenses | Expenses paid in advance to be recognized within 12 months | |
Processing Fees | One-time charge for processing documents, requests, transactions | |
Professional fees - Accounting, Tax and Audit | Costs incurred in employing accounting services including bookkeeping, tax preparation, and auditing | |
Professional fees - Appraisal | Professional fees paid to independent property appraiser to determine market value of property | |
Professional fees - Legal | Costs incurred in availing legal services | |
Professional Fees - Notary | Costs incurred in availing notarial services | |
Professional Fees - Consulting | Fees paid to management consulting firms for professional services employed | |
Property Management Fees | Fees paid to the property manager for managing the property | |
Recording Fees | Fees levied by the government to document real estate transactions in order to make them a matter of public record | |
Referral Fees | Finder or referral fees incurred | |
Rental Expense | Rental expenses incurred by the fund | |
Rental Income | Rental income earned by the fund | |
Repairs and Maintenance | Repair/maintenance of fixed assets to working order that do not extend the expected useful life of the asset | |
Returned Earnest Money Deposit | Amounts paid to confirm a contract that have been returned | |
Security Deposits Held | Deposits paid to the fund for rental services provided which may be refunded or forfeited by the tenant | |
Start-Up Costs | Costs associated with the implementation of business and incurred before the entity is active, such as research, travel, consulting fees, advertising | |
Taxes - Franchise | Franchise Taxes paid | |
Taxes - Property | Taxes levied on real property, primarily upon Land and Buildings | |
Taxes - Refund | Refund of taxes previously paid | |
Taxes - State, Penalties, Interest | Taxes due to the local government
Payment due to failure to pay taxes
Interest on delayed payments of taxes | |
Third Party Fees Payable | Fees payable to a third party related to loans | |
Travel Expense | Business travel expenses | |
Utilities | Cost incurred by using utilities such as electricity, water, waste disposal, heating, and sewage |