Hospitality
FF&E Reserve Funding (Capex)
Setting aside cash for future replacement of Furniture, Fixtures & Equipment.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Restricted Cash: FF&E Reserve | Asset (+) | 1,000.00 | - |
| Cash (Unrestricted) | Asset (-) | - | 1,000.00 |
💡 Accountant's Note
Banks and Management Agreements usually require the owner to set aside 3-5% of Total Revenue into a separate account to pay for future renovations.
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