1. Services
  2. US
  3. Financial Administration
Yacht owner sitting on sundeck with tablet in hand

Financial Administration

Balancing the Books

Rest assured that everything is taken care of with financial and accounting support through Fairport Global. Effective financial control is an integral part of any successful yacht program and key to providing the owner with the transparency they expect. Our online accounting platform is industry renowned for its ease and functionality both onboard and shoreside.

Contact Fairport Today

Budgets

Fairport Global's team of accountants set realistic budgets and cash flows, collaborating with the captain or owner's rep to plan a detailed operational budget for the yacht. Expenditure against the budget is monitored regularly.

Cash Flow

Fairport Global establishes a dedicated bank account for each yacht that includes debit cards for crew and will make regular bank reconciliation checks to ensure accuracy and authenticity. Utilizing approved agents, petty cash can be arranged.

Accounting Reports

Offering an accurate and transparent view of monthly expenditures, Fairport Global take pride in delivering reports that go beyond just numbers but offer a comprehensive view of the yacht's financial health. Reports can include a monthly breakdown of actual VS budgeted expenditures, variation reporting, year-to-date reports and debit and credit card consolidations.

Crew Payroll & Tax Management

Fairport Global assist and support the captain with the administration of payroll, and may include international payments to crew bank accounts, social security liability management, crew medical insurance and tax return documents.

Month-end Accounting & Auditing

Fairport Global meticulously compiles and presents detailed month-end and annual financial reports, which include comprehensive analyses of monthly cash flows and insightful details on projected budgets and actual expenditures.

Payments & Supplier Invoices

Fairport Global strives to ensure secure and timely transactions to suppliers upon verifying bank and VAT details and maintain record all payments and transfers within our accounting platform.
Table set for alfresco breakfast during yacht charter

Charter Funds & APA

APA, short for Advance Provisioning Allowance, estimates funds for a charterer’s expenses on a yacht vacation. Paid ahead by the charterer, it helps the captain and charterers transparently track spending. Fairport Global ensures APA is kept in the yacht’s account for the captain’s expenditures and records. Any leftover funds post-charter are returned to the charterer by Fairport Global.

Accountant diligently filling out tax forms

Quarterly & Annual Tax Returns

Fairport Global can also assist when preparing the yacht’s quarterly and annual tax returns. Utilizing all the information from Fairport’s high-level reports, including balance sheets, profit and loss statement, general ledger and reconciliation, the team can prepare all the tax return information and submit to the owner or owner’s representative for review.

FAQs

How often is the owner updated on expenses?

Fairport Global will supply regular accounting reports to the owner, at quarterly intervals or such other intervals as may be mutually agreed.

Does the owner see all invoices and receipts?

Fairport Global will provide invoices to the owner and maintain all receipts for any expenses incurred, all of which are recorded in Fairport’s accounting system for the owner to view at any time. All on board accounts synchronize with shore accounts using standard accounting practices.

Whose responsibility is the tax returns of the crew?

Fairport Global aid the crew in preparation of their tax returns, however, they remain the responsibility of the individual crew member.

What happens if the yacht is commercially registered?

Owner’s who are looking to charter generally choose to register as a commercially operated vessel and choose to flag offshore. There are many benefits to this, including mitigation of some tax burdens. Many popular flag states have appealing avenues for setting up offshore corporate structures and offer favorable taxation and liability protection.

What VAT is applicable if I charter out my yacht?

VAT on charter fees are chargeable to the end consumer (the charterer) but for the operation of the charter business the business can deduct VAT as an operating expense, allowing for example for the use of duty free fuel, a significant saving on a large motor yacht.

Independent, Unbiased, Ethical. We Are Fairport

Fairport Global is here to help you navigate all the safety, technical, and administrative aspects of luxury yachting.

Get in Touch

A New Angle on Shore Support

Contact Fairport Today