Xero Buildout — comprehensive scaffold

Last refreshed: 2026-05-09. Replaces (does not delete) accounting/xero-brex-setup-plan.md, which was the original 4-tier plan from 2026-04-19. The old plan's structure remains useful as a reference; this file is the live buildout state and forward roadmap.

What this file is. A single-page rollup of where the Xero org is today, what's done, what's left, the dependencies between phases, the open architectural decisions queued for Austin, and the operational runbooks for monthly close + intercompany recon + summary-JE workflow.

What this file is not. The granular per-topic deep dives. Those live under accounting/ (chart-of-accounts, vendor-mappings, casa-moksha-intercompany-mockup, jme-deliverable-status, etc.) and are referenced from here, not duplicated.

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1. Mission

Stand up Xero as the accounting system of record for Renfroe Family Holdings, LLC and every US disregarded sub-LLC. Renfroe Hospitality Group SA de CV (Mexico, JME-maintained) and Renfroe Holdings GK (Japan, ABS Partners–maintained) keep their books in local software; their periodic project deliverables flow into Xero as summary journals under tracking categories. RHG cadence is quarterly (Path A) since JME does not operate on a monthly close cadence; GK cadence is TBD pending ABS with quarterly as the default until ABS confirms otherwise. The US operating close runs MONTHLY — independent of foreign summary cadence (per Phase 5 three-lane decomposition). Brex feeds USD transactions natively; Amex via direct feed; non-Amex via Plaid; Santander MXN + Tokyo Star Bank via summary JE only.

Xero is the GL. Monarch is the position tracker. The boundary between them is locked (decisions/log.md 2026-04-19 "Xero-vs-Monarch data scope") and is not relitigated below.

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2. Current state — live Xero org as of 2026-05-09

Pulled directly from the API via scripts/fpa/xero_client.py.

Dimension	Value
Org name	Renfroe Holdings
Legal name	Renfroe Family Holdings, LLC
EIN	33-1273117
Edition	BUSINESS / PREMIUM
Base currency	USD; 7 currencies enabled (USD, AUD, CAD, EUR, GBP, JPY, MXN)
Fiscal year end	Dec 31
Custom Connection	ACTIVE since 2026-04-20 ($10/mo)
Total accounts	139 (113 pre-Moksha rollup + 26 from Moksha)
BANK accounts (ACTIVE)	30
BANK accounts (ARCHIVED)	25 — the Brex duplicate-pair cleanup
Tracking categories	2 live: Entity (11 options) + Asset Class (7 options)
Tax rates	11 — incl. IVA 16% Sales/Purchase/Zero/Exempt
Contacts	9 (Portilla merged to single canonical record; Santander supplier added)
Open AP bills	25 from 2026-02 → 2026-04 (24 still need GL-account coding)

Entity tracking-category options (11): ATX Marine Holdings · Austin Marine Holdings · Five Points BHM · Oceana 433 · Renfroe Family Holdings · Renfroe Holdings GK · Renfroe Hospitality Group · Renfroe Innovation · Renfroe Marine Holdings · W 3101 Holdings · W 3603

Asset Class options (7): Commercial Rental · Foreign Real Estate · Holdings/Mgmt · Hotel · Marina · Primary Residence · Residential Rental

What's been completed since the 2026-04-19 baseline

Milestone	Date	Reference
Custom Connection live, real org bound	2026-04-20	decisions/log.md 2026-04-19
Brex duplicate bank-account pairs archived (25 archived; user-named ones kept)	2026-04-19 → 2026-04-22	accounting/xero-baseline-2026-04-19.md
Tracking categories installed (Entity + Asset Class, per plan)	2026-04-19	scripts/fpa/xero_add_tracking_categories.py
Portilla contacts merged into single canonical record	2026-04-19	scripts/fpa/xero_merge_portilla.py
MXN IVA tax rates installed	2026-04-19	scripts/fpa/xero_add_mxn_tax_rates.py
All AP bills tagged with Entity tracking	2026-04-19	scripts/fpa/xero_apply_bill_tracking.py
Moksha org rolled up + decommissioned	2026-04-22	accounting/moksha-rollup-plan.md
Bank-account naming standardized ("Entity: Brex Account (####)")	2026-04-19 → 2026-04-22	scripts/fpa/xero_rename_accounts.py
Daily Xero backup script in place + first snapshot committed	2026-04-20	scripts/fpa/xero_backup.py, source-data/xero-backups/
JME 2025 annual deliverable received + parsed	2026-04-29	source-data/jme/2026-04-29/, accounting/jme-moksha-opening-balance-recon-2026-04-29.md
JME deliverable cadence reset (NOT monthly — project-driven)	2026-05-08	accounting/jme-deliverable-status.md
Multi-year FS landed (2023–2025 signed); confirms zero-CM-rev structural	2026-05-08	source-data/jme/2026-05-08/
Renfroe Innovation added as Entity tracking option	2026-04-29	live state
Phase 0 cleanup polish (first under migration discipline) — added "Consolidation Eliminations" as 12th Entity tracking option; tagged 5 active untagged AP bills (Alex Snider ×2, Designer Installs ×2, RTC Restoration); archived WF mortgage 0819	2026-05-10	xero_migrations/2026-05-10-001-phase-0-cleanup-polish/
IVA "Test A/B" tax rate cleanup confirmed already done (TAX001/TAX002 status=DELETED in live state)	(pre-2026-05-10)	source-data/xero-backups/2026-05-10/tax-rates.json
Personal-card archive confirmed already done — all Citi / Hyatt / Marriott / Delta / etc. personal CCs are ARCHIVED in live state	(pre-2026-05-10)	source-data/xero-backups/2026-05-10/accounts.json
Bank-feed audit: Plaid pipeline build cancelled — every active account is covered by native Xero direct feeds (Brex partnership, Amex direct, Wise direct, PayPal direct) at zero cost	2026-05-10	Phase 3 below; live state audit in source-data/xero-backups/2026-05-10/accounts.json

What's still open (in order of unblock-leverage)

Open item	Owner	Blocks
First Horizon 8368 mortgage reclass — BANK→TERMLIAB; requires archive+create pattern (in-place Type change forbidden); $0 balance so no JE needed	Austin sign-off + Claude execute	Clean balance sheet (Phase 0)
Designer Installs duplicate question — 2 PAID $1098 bills with same Somfy drape motor description, different Brex refs; void one or both legit?	Austin	Phase 0 closure
Send the JME questions email; chase Feb 2026 financials (~6 weeks overdue)	Austin	Phase 4 (RHG summary JE design)
Pearce 2025 working session — full agenda in tax/2025-filing-prep.md; packet drafted at accounting/advisor-packets/pearce/2025-working-session-2026-05-10.md	Austin	Phase 1 (COA finalization), Phase 6 (advisor outputs)
ABS Partners (GK Japanese accountant) intro to Pearce + deliverable cadence definition	Austin	Phase 4 (GK summary JE design)
Decide Mita opening basis + GK depreciation start convention	Austin + Pearce	Phase 4 GK summary JE
Sort Monarch accounts (personal / RFH / RENFROE)	Austin	Phase 2 (historical backfill)
Brex full-history CSV import (2024-01 onward)	Claude (script TBW)	Phase 2
Amex direct-feed wiring	Austin (Brex/Amex side); Claude (Xero side)	Phase 3
Forecasting tool selection (Fathom / Spotlight / Float)	Austin (after 3 mo clean data)	Phase 7

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3. Foundation decisions (locked — don't relitigate)

These are anchored in decisions/log.md. Everything below builds on them. Listed here for fast reference, not for re-debate.

• One Xero org for all US-side activity (2026-04-19, supersedes 2026-04-18).
• Two tracking categories: Entity + Asset Class (2026-04-19).
• Intercompany within disregarded stack = capital contributions, not loans. Exception: AFR loan from Austin's parents to Five Points BHM IS real debt (2026-04-19).
• Intercompany RFH ↔ RHG = settlements, NOT capital contributions (provisional collection-agent / settlement framing — see accounting/accounting-policy.md §5.A). PROVISIONAL until JME §1 framing answer + Pearce sign-off lands. RHG owns all guest revenue; RFH is collection agent for USD-denominated portion (2026-04-19).
• Intercompany RFH ↔ GK = capital contributions down + cross-border cash sweeps (e.g. the $1.155M GK→Primary movement). Recharacterized as needed once US cross-border counsel weighs in.
• Historical Brex backfill to Jan 1, 2024 via CSV (2026-04-19).
• SBA EIDL payments from Five Points book as distribution-then-personal (2026-04-19).
• Casa Moksha revenue stays multi-channel intentionally; fix is documentation, not routing (2026-04-19).
• Amex native direct feed + Plaid pipeline for non-Amex (2026-04-19).
• Xero vs. Monarch scope: Xero = operating activity + RE + debt + business cards + intercompany + foreign-corp summary journals. Monarch = personal lifestyle + VC/convertible/direct investments + retirement + crypto + vehicles (2026-04-19).
• Monarch historical archive Path D: full CSV → source-data/monarch/; RFH-side subset → Xero pre-feed backfill; RENFROE subset held in archive for future RENFROE books (2026-04-19).
• Custom Connection (not Web App) for the API integration (2026-04-19).
• Daily Xero backups committed to git; the repo IS the backup (2026-04-20).
• JME does NOT operate on monthly cadence. Project-driven deliverables only — back-tax catchups, year-end SAT package, transformation paperwork. Don't expect monthly TBs from them (2026-05-08).
• Zero Casa Moksha revenue on RHG books is structural across 2023–2025, not a 2025 anomaly. JME-confirmed via signed multi-year FS (2026-05-08).
• Cindy quit (not fired); no separation payout was issued; substantive removal grounds are illegal acts. Do NOT book a Cindy-severance line in any COA (2026-05-09).

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3.5. Companion documents — policy + subledgers + registers

The following files implement the structural recommendations from external-LLM review (Rounds 1, 2, and 3, all on 2026-05-10). They sit alongside the buildout roadmap below; together they define the system. Treat as binding companions to this scaffold.

File	What it does
accounting/accounting-policy.md	Centralized policy memo (39 sections): reporting basis, capitalization, depreciation, revenue recognition, FX convention, personal-card reimbursement, owner-vs-entity boundary rules, classification confidence system, suspense + exception workflow, cutover-date framework, document-retention, entity-allocation rules, multiple basis types, manual-until-stable areas, contact + account naming, clearing accounts, evidence preservation rule, decision hierarchy for source conflicts, Reporting-Unit-vs-Legal-Entity rule, stable external ID convention, M365 + automation security, Xero-mutation discipline, Plaid pipeline guardrails, 5 reporting views, consolidation eliminations, refined clearing vs intercompany, exception severity + SLA, automated tests list, book-to-tax bridge wording. Read BEFORE adding anything to Xero.
accounting/source-of-truth-matrix.md	Per-domain canonical-source table + document-retention column.
accounting/entity-tax-classification-matrix.md	Per-entity legal owner / tax classification / Xero treatment / lifecycle state, with five-field RHG/Cindy ownership (legal record / tax return position / economic / disputed / intended). Includes existing GK (sole GK today) + proposed second GK (NOT yet formed) + Consolidation Eliminations Reporting Unit.
accounting/advisor-decision-register.md	Per-advisor positions log with effective dates + Xero impact.
accounting/transaction-coding-rules.csv	Structured rules table: source pattern → Xero account + Entity + Asset Class + tax flag + confidence level. Drives Xero bank rules + LLM auto-coding. Maintained HERE so logic survives migrations.
accounting/exception-log.md	Running suspense items pending advisor / source-document resolution; severity-tagged + SLA-tracked.
accounting/intercompany-ledger.csv	Per-flow legal characterization, FX, Xero JE ID, source doc.
accounting/reservation-ledger-casa-moksha.csv	Per-guest reservation ledger feeding STR avg-stay analysis + revenue recognition.
accounting/loan-register.csv	Real third-party + intrafamily debt.
accounting/property-capex-register.csv	Per-property capex cap-vs-expense + advisor review status.
accounting/crypto-subledger.md	BTC tax-lot tracking.
accounting/personal-card-business-expenses.md	Personal-card reimbursement workflow.
accounting/advisor-ask-packet-template.md	Per-advisor decision packet template + standing list of packets to draft.
accounting/renfroe-innovation-ip-register.md	Per-asset IP register: patents, applications, trademarks, maintenance fees, licensing status.
tax/compliance-calendar.md	Single rolling calendar of every filing / renewal / reporting deadline.
tax/nol-preservation-ledger.md	$3.43M federal NOL preservation strategy + scenario forecasts.
legal/legal-document-inventory.md	Master list of every legal/tax document supporting accounting classifications; flags missing-but-needed gaps.
investments/investment-register.md	LP/VC/convertible/direct investment register; LP-transfer-into-RFH decision tracking.
context/contradictions.md	Explicit register of structural / framing tensions where two views coexist.
todo/austin-decision-board.md	Bundled list of decisions only Austin can make, grouped into 15-min decision blocks.
xero_migrations/	Per-mutation record of every Xero-changing operation; required by accounting/accounting-policy.md §32.

Discipline rule (per accounting-policy.md §27): No transaction gets cleaned up unless the system preserves the original evidence, the classification rationale, and the advisor uncertainty level. This is the headline anti-pattern guard.

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4. Phases

Sequenced by dependency, not calendar. Phase exit criteria are binary so we know when to move on.

Phase 0 — Final cleanup polish

Most items closed via migration 2026-05-10-001-phase-0-cleanup-polish. Two items remain — both need Austin sign-off, not Claude work. Each future mutation requires a migration package per accounting/accounting-policy.md §32 + xero_migrations/README.md.

Task	Owner	Mechanism	Status
Delete 2 leftover IVA "Test A/B" tax rates	—	—	Already done — TAX001/TAX002 status=DELETED in live state at audit
Code-assign untagged AP bills (claim was 24 — actually 5 active + 3 voided)	—	—	Done 2026-05-10 — 5 tagged per 2026-05-10-001-phase-0-cleanup-polish; voided bills excluded
Add "Consolidation Eliminations" Reporting Unit	—	—	Done 2026-05-10 — option id 44b0c447-0c81-4109-9414-90eb003a29c3 per migration package
Archive WF mortgage 0819 (1300 27th Place S #63, sold/paid off)	—	—	Done 2026-05-10 — Status=ARCHIVED per migration package
Personal-card archive (Citi / Marriott / Delta / etc.)	—	—	Already done — all personal CCs ARCHIVED in live state at audit
First Horizon 8368 mortgage reclass (BANK→TERMLIAB)	Austin sign-off → Claude execute	Archive-and-create pattern (Xero forbids in-place Type change); $0 balance so no JE needed; actual liability balance enters via Phase 2 backfill	Open — needs Austin decision on new-account naming + COA code (2210 or 2240)
Designer Installs duplicate question	Austin	Two PAID $1098 bills, same Somfy drape motor description, different Brex refs — possible duplicate vs. legit-pair. Tagging both for now; voiding requires payment unallocation first	Open — needs Austin determination
CC BankAccountSubType verification	Claude	BankAccountSubType is not exposed in the Xero API list response; the Type=CREDITCARD flag is set correctly on all 2 active CC accounts. No-op — buildout doc's "verify in UI" instruction was based on a misread of the API response shape	Closed — false alarm

Phase 0 exit: zero "obvious cleanup" items left visible in the baseline diff. Org reads cleanly to a third party without footnotes. ~80% complete pending the two Austin-decision items above.

Phase 1 — Chart of Accounts finalization

The COA today is the Xero US BUSINESS template + 26 Moksha-rollup additions + ad-hoc adds. The plan in accounting/chart-of-accounts.md is more substantial: explicit per-property real-estate basis lines, intercompany receivable/payable lines per entity, IVA recoverable, Mexican payroll lines, etc. Most of those are not yet created.

Two gating inputs to finalize the COA:

1. JME's substantive answer to the §1 framing question in todo/jme-questions-2026-04-29.md (RHG-as-landholder vs RHG-recognizes-revenue) — drives whether RHG-side revenue lines exist in the consolidated Xero org or are only on JME's local books.
2. Pearce 2025 working session — at minimum confirms (a) check-the-box election state for RHG and GK, (b) NOL carryforward classification, © tax-prep-efficient COA structure. Items 3, 6, and 19 in tax/2025-filing-prep.md.

Until those land, the COA stays at its current 139-account state. Don't pre-build the full planned COA before those inputs arrive — reshuffling later is waste (this lesson is in xero-baseline-2026-04-19.md Recommended Sequence #1).

Task	Owner	Trigger
Re-snapshot live Xero COA into accounting/chart-of-accounts.md so the doc matches reality (139 accounts post-rollup)	Claude	Now — listed in Claude queue
Land JME §1 framing answer	JME (Austin chasing)	Email already drafted
Run Pearce 2025 working session against tax/2025-filing-prep.md	Austin + Pearce	When Austin schedules
Build out per-property real-estate basis accounts (1510-1560)	Claude	Post-Pearce
Build out intercompany receivable/payable lines (1120 Due from RHG / 2030 Due to RHG / etc.)	Claude	Post-JME §1 framing
Build out Mexican payroll line items (IMSS, ISN, aguinaldo, etc.)	Claude	Post-JME
Build out crypto gain/loss accounts	Claude	After Coinbase (CM historical) export lands
Build out IVA recoverable line	Claude	Already partially done (16% Sales/Purchase rates exist); verify accounts

Phase 1 exit: COA covers everything the plan calls for; advisor (Pearce) has reviewed and signed off; no "this account doesn't exist yet" gaps when posting routine activity.

Phase 2 — Historical backfill

Xero's native Brex sync covers ~90 days. We want clean 2024 + 2025 + 2026-YTD comparables before we declare the system "live."

Task	Owner	Mechanism
Brex full-history CSV import (Jan 1, 2024 → Brex sync coverage start)	Claude	scripts/fpa/xero_* (helper to be written: parse source-data/brex/2026-04-19-full-history-analysis.md source CSV, transform to Xero bank-import format per account)
JPMorgan Chase historical (15 mo)	Claude	Via Plaid pipeline (Phase 3) once running, OR CSV one-shot if Phase 3 slips
Wells Fargo 6248 historical (May–Sept 2025 minimum, for Mita refund + CM guest receipts pre-Brex)	Austin (statement upload) → Claude	CSV import
Monarch Path D — full CSV → source-data/monarch/; RFH-subset → Xero	Austin (sort) → Claude (split + import)	After Austin's sort

Phase 2 exit: Xero has ledger continuity from Jan 1, 2024 onward across every business-relevant account; YoY P&L and balance sheet are meaningful.

Phase 3 — Live feeds (everything that isn't Brex)

Round 5 simplification (2026-05-10): Plaid pipeline build CANCELLED. Bank-feed audit confirmed every active account is covered by native Xero direct feeds at zero cost: Brex direct partnership (14 sub-accounts), Amex direct feed (Business Platinum), Wise direct feed (8 currency wallets), PayPal direct feed (Casa Moksha). The original Plaid plan targeted "non-Amex cards + JPMorgan Chase" but (a) no non-Amex non-Brex active cards exist (personal Citi/Marriott/Delta archived), (b) JPMorgan Chase isn't tracked in Xero today (when added, JPM Business has its own free Xero direct feed). The Plaid build was a contingency for a gap that doesn't exist.

Task	Owner	Mechanism	Status
Wire Amex native direct feed → Xero for every RFH cardholder	Austin (in Brex/Amex dashboards) + Claude (Xero side)	Free, automated daily	Open — Austin to wire
Pre-Plaid guardrails	—	—	Cancelled — Plaid not needed
Build Plaid → Python → Xero pipeline	—	—	Cancelled 2026-05-10 — native Xero direct feeds cover all active accounts
Configure auto-categorization rules from accounting/vendor-mappings.md + accounting/transaction-coding-rules.csv	Claude	API; rules maintained in repo, not just in Xero	Open
Verify: Brex's spring-2025 expanded sync (bill-pay + bank-feed, not just card) is actually flowing — was a known integration gotcha	Claude	Reconcile one full month	Open

Phase 3 exit: Every business-relevant USD account is feeding Xero automatically; manual CSV intervention only for one-offs (foreign banks: Santander MXN and Tokyo Star Bank stay summary-JE-only).

Phase 4 — Foreign-entity summary journals (RHG + GK)

This is the hard phase because it depends on advisor cooperation on both sides plus a recharacterization of how the local books map to Xero. Don't try to start it before Phase 1 is largely done.

Three-JE-types decomposition (applies to BOTH RHG and GK)

For each foreign entity, keep three journal types strictly separate — mixing them makes the books unreadable later:

JE type	Purpose	Cadence	Posting target
Local-book summary JE	Reflect the local statutory books (JME / ABS) in Xero at summary level	Per Path A or B decision below	Per-entity P&L + balance-sheet roll-up
Intercompany clearing JE	Clear cash moved between RFH ↔ RHG / GK / sub-LLCs / Austin	Per-wire (real-time) + monthly recon true-up	The clearing accounts in accounting/accounting-policy.md §26
US tax adjustment JE	Support 5471 / 8858 / PFIC / GILTI / Subpart F / depreciation / FX adjustments per Pearce	Annual at 5471 prep; can be quarterly at Pearce's request	Adjustment / OCI lines in 9000-range per accounting-policy.md §25

Each type goes into Xero with the corresponding JE-type tag in the memo (e.g., [LOCAL-SUMMARY-RHG-Q3-2026], [INTERCO-CLEAR-RFH-RHG-W12], [US-TAX-ADJ-GK-5471-2025]). This makes them filterable in post-close advisor packages.

Templates implementing this decomposition: - accounting/je-templates-foreign-entity.md — Type A (LOCAL-SUMMARY) line structures for RHG + GK; Type C (US-TAX-ADJ) line structures; memo prefix taxonomy; validation tests; advisor-blocked open items - accounting/je-templates-intercompany-clearing.md — Type B (INTERCO-CLEAR) operational recipes for every RFH↔RHG sub-flow (USD guest revenue, BTC settlement, RFH-on-behalf vendor pmt, settlement wire, pre-funding edge, month-end true-up), every RFH↔GK sub-flow (capital down, AFR loan, mirror-leg note, future Mita rent sweep, cross-border sweep, true-up), and disregarded-stack flows (1198)

4a. RHG (Mexico, JME)

Substantive blocker: JME's answer to todo/jme-questions-2026-04-29.md §1 (RHG-as-landholder vs RHG-recognizes-revenue) — drives the JE structure. Until JME confirms the framing, the summary JE design is provisional and current Xero entries reflecting RHG revenue / collection-agent flows are at confidence level [P] (Provisional) per accounting-policy.md §16. When JME's framing lands, upgrade Xero entries to [F] in a single bulk reclassification.

Operational blocker: JME does NOT produce monthly trial balances. They produce project deliverables. The "monthly summary JE" is therefore not a one-to-one of JME's outputs. Two viable paths:

• Path A — Quarterly summary JE. Claude reads JME's project deliverables as they land (year-end package, transformation balance sheet, RNIE form, etc.) and generates a quarterly summary JE for Xero from the underlying CFDI / Santander / Brex data. Lower JME cooperation overhead.
• Path B — Build a custom monthly export from JME's CONTPAQi. JME would need to produce a monthly TB + GL + IVA workpaper export specifically for the Xero-summary workflow. Higher JME cooperation overhead; also a billing question (their fee is 7,540 MXN/mo — does that include this work or extend it).

Recommended: Path A (quarterly), at least until Pearce signs off on the broader 5471 / Subpart F / GILTI workflow. Path B is harder than the Mexican market norm and doesn't materially help US tax prep.

Task	Owner	Trigger
Land JME §1 framing answer	JME (Austin chasing)	Email already drafted
Decide Path A vs Path B	Austin (after Pearce input)	Pearce session
Design summary JE template in accounting/casa-moksha-intercompany-mockup.md against Path A or B	Claude	Post-decision (Type A line structure landed in accounting/je-templates-foreign-entity.md §3.B as v1; refresh once Path locks)
Design the intercompany-clearing JE (Brex→Santander wires, RFH→RHG payable)	Claude	v1 landed in accounting/je-templates-intercompany-clearing.md §3 (sub-flows 3.A–3.F); refresh confidence flags [P] → [F] once JME §1 framing lands
Post first quarterly (or monthly) summary JE as DRAFT; review with Austin; authorize → post	Claude + Austin	First period after design freeze

4b. GK (Japan, ABS Partners)

Engagement state: ABS Partners engagement letter Docusign-completed 2026-03-01. Pearce intro is unblocked from JA side; Austin to make the introduction.

Substantive blockers: - Mita Garden Hills opening basis (¥835,355,900 paid to seller side, per accounting/mita-purchase-price-reconciliation.md; refer for the JPY-anchored buildup) - GK depreciation start date (delivery 2025-07-28 confirmed; Japanese vs US depreciation methods diverge) - Whether Mita's rental qualifies as trade-or-business under the 5471 / PFIC analysis (Pearce decision) - PROPOSED second GK formation via Tohyama (NOT yet executed as of 2026-05-10) — restructure WOULD transfer Mita ownership from existing GK to a newly-formed second GK (US-LLC member); JP-side mechanism cleared by ABS/Endo 2026-04-30 with FMV mark-to-market on transfer date; US-side capital-gain exposure on the transferring US LLC pending Pearce + Kim & Rosado review. Tohyama still waiting on Austin to provide forms + US-LLC existence cert + affidavit before formation can be executed. Today: only ONE GK exists. If/when restructure executes, two GK Reporting Unit rows during transition; existing GK row would archive post-wind-down. See accounting/entity-tax-classification-matrix.md rows for Renfroe Holdings GK — EXISTING and the proposed second GK.

Task	Owner	Trigger
Pearce ↔ ABS Partners introduction	Austin	Anytime
Confirm ABS Partners' deliverable cadence (project-driven, on Endo's preferred schedule)	ABS Partners (Endo)	Austin to ask
Land Mita opening basis decision (JPY-anchored vs USD-translated; FX-date convention)	Pearce + ABS	Working session
Land US-side capital-gain exposure analysis on the proposed new-GK Mita transfer	Pearce + Kim & Rosado	Working session — gates whether to execute formation at all
If cleared: Austin to provide Tohyama with US-LLC existence cert + member affidavit + complete the form (these documents are what Tohyama needs to actually execute formation; until Austin provides, NO formation occurs)	Austin	Post-Pearce/Kim&Rosado clearance
Build GK summary JE template under Entity = "Renfroe Holdings GK — EXISTING" + planned "Renfroe Holdings GK — NEW" tracking rows	Claude	Post-decisions above (Type A line structure landed in accounting/je-templates-foreign-entity.md §3.C as v1)
Track GK ↔ RFH intercompany flows (the $1.155M sweep + future Mita rent + capital contributions down)	Claude	Type B recipes landed in accounting/je-templates-intercompany-clearing.md §4 (sub-flows 4.A–4.F)
Post first summary JE as DRAFT	Claude + Austin	First period after design freeze
Track Mita basis transfer at restructure execution	Claude	At restructure execution
Critical framing: Japanese statutory/tax transfer is FMV mark-to-market per Endo (ABS) confirmation 2026-04-30; spread between contributed capital and FMV is JP-side gain. US book basis, US tax basis, 5471 basis, depreciation basis, gain recognition, and any step-up vs carryover treatment are TBD pending Pearce + Kim & Rosado. Do NOT post any US-side FMV step-up, gain, or basis transfer until advisor-confirmed. Track the JP-side movement at the JP statutory level + intercompany clearing; hold the US-side reflection at confidence [P] (Provisional) until Pearce signs off.	Claude (no posting until advisor-confirmed)	Per advisor session

Phase 4 exit: Both RHG and GK summary JEs are posting cleanly, on whatever cadence we settle on; intercompany books-balance both sides; the consolidated trial balance reads correctly.

Phase 5 — Three close lanes (US monthly + foreign quarterly + tax-advisor)

Round 3 LLM correction: The previous version had Phase 4 (foreign summary JEs) as a hard gate before Phase 5 (first proper monthly close). That was backwards — US books can close monthly even while foreign provisional. Three lanes operate in parallel:

Close type	Cadence	Scope	Target
US operating close	Monthly	Brex (15 sub-accounts) + Amex direct + Plaid pipeline (when live) + JPMorgan + AP for US disregarded entities + known intercompany clearing	3 business days post month-end
Foreign summary close	Quarterly	RHG (Path A from JME's project deliverables) + GK (cadence per ABS) summary JEs flowed in	15-30 days post quarter-end
Tax / advisor close	Quarterly + annual	5471 / 8858 / FBAR / 8938 prep; PFIC / GILTI / Subpart F adjustments; depreciation; NOL roll-forward	Advisor-driven (Pearce / ABS / JME / Kim & Rosado)

The US operating close runs WITHOUT waiting for foreign summary finalization. Foreign-side movements that are known (e.g., a quarter's worth of intercompany settlement wires Brex → Santander) are reflected at the US side at provisional confidence; the foreign summary JE updates them to Final at the next quarterly close.

This unblocks Austin's monthly visibility even while RHG / GK / new-GK questions remain in flight.

Task	Owner	Mechanism
Pick the first close month (target: month after Phase 1 + Phase 4 done)	Austin	—
Run the monthly-close playbook end-to-end	Claude (most steps) + Austin (sign-off)	§6.A below
Document deltas, surprises, fixes; iterate	Claude	Add to accounting/xero-buildout.md Operational Runbooks
Target: 2nd close finishes within 3 business days of month-end	Both	—

Phase 5 exit: Two consecutive monthly closes complete within 3 business days of month-end with no major do-overs; reports are reliable enough to share with Pearce / JME / ABS without explanation.

Phase 6 — Reporting & advisor outputs

Design principle (from external-LLM review): Build the reporting package first, then design COA / subledgers backward from the reports. The reporting outputs are first-class deliverables, not an afterthought. Each report defines what data the rest of the system needs to produce.

Two output streams: internal (Austin / management) and advisor export packages (load-bearing for advisor work product).

6.A — Internal reports (monthly cadence)

Generated from Xero into markdown reports in this repo. Zero-cost, Claude-native, low-interactivity. Validate against Austin's expectations. Required minimum:

• Consolidated management P&L (with Asset Class roll-up)
• P&L by Entity
• P&L by Asset Class
• Balance sheet by Entity
• Cash by bank account / by entity
• Intercompany roll-forward
• Owner contribution / distribution roll-forward
• Loan roll-forward
• Property capex roll-forward
• Casa Moksha booking / revenue reconciliation (against accounting/reservation-ledger-casa-moksha.csv)
• Foreign-entity summary-JE support pack (per JE-type per accounting-policy.md §4 / 3-JE-types decomposition)
• Open exceptions report (live state of accounting/exception-log.md)
• Monthly close checklist (auto-generated from runbook §6.A in this file)

6.B — Advisor export packages (first-class outputs)

Each package is a structured packet with a fixed checklist. Generated quarterly + on-demand at advisor request. Hand-off format: PDF + CSV + markdown context note + supporting Xero-export.

Package	Audience	Cadence	Contents
Pearce US tax package	Pearce Bevill + Kim & Rosado	Quarterly + at year-end	NOL utilization tracker; estimated tax schedule; 5471/8858/8865 candidate list; FBAR threshold check; Augusta-rule rentals support; per-property depreciation schedule; cost-segregation candidates
JME Mexico package	JME Contadores	Quarterly	Intercompany reconciliation memo (RFH → RHG settlement wires vs JME-side recognition); CM guest-revenue ledger snapshot; Acreedor Gavon Augustus running balance; capex inventory cap-vs-expense flag list
ABS Japan package	ABS Partners	Quarterly	GK consolidated picture (Mita basis + depreciation accumulated; TSB mortgage roll-forward; intercompany RFH → GK movements); FX translation support; new-GK transition state if active
Portilla legal/reorg package	Portilla, Ruy-Díaz y Aguilar	At-request, plus monthly during active matters	Cindy consignación cost roll-forward; RHG SA → S. de R.L. de C.V. conversion-cost capex; LABORAL-matter cost roll
Withers international tax/legal package	Withers Tokyo	At-request	GK formalities + new-GK formation transition support
Banking / lender package	Pinnacle / TSB / First Horizon / Brex (refi conversations)	At-request	Per-entity balance sheet + P&L + DSCR; debt-service support
Internal CEO snapshot	Austin	Monthly	Single-page summary: cash, NOL remaining, liquidity, intercompany balances, open exceptions, advisor-blocking items

Each package has: 1. Fixed checklist (what's in the packet) 2. Cover memo with classification confidence flags 3. Source-document references (per accounting-policy.md §19) 4. Open exceptions affecting the package (per accounting/exception-log.md)

6.C — Forecasting layer

Phase 7.

6.D — Optional dashboard

todo/tech-automation.md Tier 3 architecture decision (markdown-in-repo / self-hosted Streamlit/Metabase / paid family-office platform / Power BI). Decision deferred until 3+ months of clean Xero data exist.

Phase 7 — Forecasting tool

Locked decision deferred until Tier 1 + 3 months of clean data. Short-list: Fathom · Spotlight · Float.

Tool	Strength	Best for
Fathom	Multi-entity reporting via tracking categories; KPI dashboards	Renfroe's 11-entity tracking-category structure
Spotlight	Scenarios + sensitivity analysis; consolidations	Multi-property scenarios (Mita refi, CM expansion)
Float	Cash-flow forecasting	Tight cash-flow visibility (less needed given liquidity buffer)

Recommendation when the time comes: Fathom most likely (multi-entity tracking-category strength matches us best). Final pick after 3 months of Xero data lets Austin or Claude stress-test the live integrations.

Phase 8 — Governance, hygiene, ongoing

Task	Owner	Cadence
Daily Xero backup script run, committed to git	Claude (cron / systemd timer)	Daily — already in place
Audit of bank direct-feed coverage (new feeds available?)	Claude	Quarterly
Audit of new bank/card accounts not yet in Xero	Claude	Quarterly
Audit of personal-vs-business credit cards in Xero	Austin + Claude	Quarterly until clean
Run playbooks/maintenance-hygiene.md against the buildout — surface drift	Claude	Weekly trigger (Wed 9:30am MT)
Re-export Monarch full CSV to source-data/monarch/	Austin (export) → Claude (file)	Annually at minimum
Renfroe Innovation: post any IP / Conley Rose activity under its tracking	Claude	Per-bill

---

5. Open architectural decisions queued for Austin

Decisions that can't be Claude-resolved. Listed in priority order.

Decision	Options	Recommended	Blocks
JME §1 framing (RHG-as-landholder vs RHG-recognizes-revenue)	(a) RHG recognizes guest revenue Mexican-side too; (b) RHG-as-landholder, RFH books all CM revenue	Wait for JME's answer (don't pre-decide)	Phase 4a; Phase 1 COA finalization
Path A vs Path B for RHG summary JE cadence	(a) Quarterly from JME's project deliverables; (b) Custom monthly export from JME's CONTPAQ i	Path A — Quarterly	Phase 4a
Intercompany services agreement structure (RFH ↔ RHG)	(a) No fee + transfer-pricing memo; (b) Arm's-length fee	Wait for Pearce + US cross-border counsel	Defensible RFH↔RHG flow framing
Proposed new-GK formation US-side capital-gain exposure (Tohyama-led restructure; NOT yet executed)	Pending Pearce + Kim & Rosado clearance	Wait	Whether to execute at all; Phase 4b would only activate IF restructure proceeds
Renfroe Innovation entity classification (Inc → LLC → ?)	Disregarded (default for SMLLC), S-corp, C-corp	Pearce + Kim & Rosado	RI tax treatment, BOIR refresh
Cutover date (when Xero shifts from "operational with provisional" → "canonical management GL with Final-confidence dominant")	Q3 2026 target after Phase 0 / 1 / 2 / Pearce session	End-of-Q3 2026 (provisional)	Phase 5
Santander USD account	Close ($950 penalties) vs fund $1K	Recommend close (penalty growing $50/mo, not load-bearing for any flow)	Mexican-side accounting hygiene
LP-interest transfer (ATP, Untapped, Crosslink, Garuda, Overwater) into RFH or stay personal	Transfer in / hold pattern	Wait for Pearce's basis-step-up vs carryover analysis	Phase 6 LP tracker
Forecasting tool	Fathom / Spotlight / Float	Fathom (defer until 3 mo data)	Phase 7
Personal-vs-business credit-card cleanup in Xero	Archive personal cards / move to Monarch only / keep in Xero with Entity = Personal	Archive; mirror personal in Monarch	Clean P&L per entity
Bank-feed mechanism for Santander MXN	(a) Manual CSV + JE; (b) Third-party feed; © Skip — JME summary JE is the only Mexican-side entry to Xero	© — consistent with Path A	Phase 4a
Dashboard platform	(a) Markdown in repo; (b) Self-hosted Streamlit/Metabase; © Paid family-office (Asora / Eton / Addepar Lite); (d) Power BI	(a) for v1; revisit after 3 mo	Phase 6.D

---

6. Operational runbooks

Live runbooks. Update as we run them and find edge cases.

6.A — Monthly close (target: 3 business days post month-end)

Day -1 (last day of month): - Verify Brex feed is current (no breakage) - Verify Amex direct feed is current - Verify Plaid pipeline ran the previous night without errors

Day 1 (1st business day post month-end): 1. Bank reconciliations: every active BANK account in Xero matched to its source statement — Brex (15 sub-accounts), Amex (per cardholder), Plaid-fed accounts 2. Run scripts/fpa/xero_backup.py for the close-month snapshot → source-data/xero-backups/YYYY-MM-DD/ 3. Verify all AP bills for the month are captured + GL-account coded 4. Verify no Uncategorized Income / Expense line items remain

Day 2: 5. Run intercompany reconciliation (§6.B below) — RFH ↔ RHG and RFH ↔ GK 6. Post the RHG summary JE (per Path A: only at quarter-end; per Path B: monthly) 7. Post the GK summary JE if cadence calls for it 8. Apply auto-categorization rules; manual-review the 20% that don't auto-match 9. Verify tracking-category coverage: every transaction has Entity assigned

Day 3: 10. Generate the close package: TB, P&L (consolidated + per-entity), Balance Sheet (consolidated + per-entity), Cash Flow, Intercompany schedule 11. Refresh accounting/exception-log.md — confirm every open exception is still open or resolve and re-classify 12. Verify clearing-account month-end balances are zero (per accounting-policy.md §26) or explained 13. Confirm classification confidence flags — every Provisional / Unknown item enumerated in the close package per accounting-policy.md §16 14. Sign-off review with Austin (preparer = Claude; reviewer = Austin per accounting-policy.md §12) 15. Apply Xero lock date at month-end for "All Users" per accounting-policy.md §11 16. Generate the advisor packages due this period per Phase 6.B (Pearce / JME / ABS / Internal CEO) 17. Commit the close package + Xero backup snapshot to git 18. Archive close-package PDFs to source-data/xero-backups/<close-period>/close-package/ — frozen, read-only after archive

6.B — Intercompany reconciliation

Three flows, three mechanics.

RFH ↔ RHG (settlement): - Pull every Brex/JPMorgan → Santander MXN wire for the period - Match each against Santander MXN inbound side (FX rate, date) - Compute USD-equivalent at wire-day FX - Post a clearing JE: Dr "Due to RHG" (2030), Cr Cash on RFH side; Dr Cash, Cr "Due from RFH" on RHG side - Flag mismatches (missing wires, FX surprises >2%, unrecognized counterparties) - Output: short markdown memo into a future reconciliation/ folder

RFH ↔ GK (cross-border): - Same pattern but USD ↔ JPY via Tokyo Star Bank summary - Capture capital flows down (Austin → RFH → GK) - Capture sweeps up (e.g. the $1.155M GK→Primary movement)

RFH ↔ each US disregarded sub-LLC: - Capital contributions and distributions only — no AFR, no interest - Exception: AFR loan from Austin's parents to Five Points BHM (real debt + interest accrual)

6.C — Summary JE workflow (RHG + GK)

When a foreign accountant lands a deliverable:

1. File the deliverable: source-data/jme/YYYY-MM-DD/ or source-data/abs/YYYY-MM-DD/
2. Generate the summary JE per the locked template (TBD per Phase 4 design)
3. Post as DRAFT in Xero
4. Review with Austin
5. Authorize → POST
6. Reconcile against the prior period's JE for continuity (no drift in opening balances)
7. Update the corresponding intercompany-clearing JE
8. Commit the source files + JE-build script output to git

6.D — New-account onboarding

When a new bank/card account opens (new LLC formation, new Brex sub-account, new partner card, etc.):

1. Add the account in Xero with <Entity>: <Bank Name> (<last4>) naming
2. Wire the live feed (Brex / Amex direct / Plaid)
3. Set Entity tracking-category default
4. Add to banking/<bank>.md ledger
5. If RHG/GK-side, also add as a tracked intercompany clearing partner

6.E — Advisor data export

When Pearce / JME / ABS asks for data:

1. Identify the period + scope (full P&L? Just Mita-related? Just RHG?)
2. Run Xero export with appropriate tracking-category filter
3. Cross-check against the latest Xero backup snapshot for any since-snapshot drift
4. Produce a markdown summary alongside the raw export
5. File into tax/<advisor>/YYYY-MM-DD-<purpose>/
6. Commit before sending

---

7. Risks & gotchas

• Brex sync occasionally breaks for weeks at a time. Monthly bank rec is mandatory, not optional.
• Brex's expense categorization doesn't match Xero's COA 1:1. Maintain accounting/vendor-mappings.md as the canonical mapping.
• Santander Mexico has no clean Xero feed. Don't try to build a direct feed. Summary JE only.
• Multi-currency FX discipline. Use Xero's built-in Banxico (MXN) and BOJ (JPY) rates at month-end; document the convention; resist the temptation to use point-in-time rates per-transaction.
• Tracking categories cap at 100 options each. We're at 11 + 7. Plenty of headroom.
• Plaid reliability varies by bank. Wells Fargo notably flaky. Build retry logic.
• Personal cards in the RFH org are a separation-of-books problem (xero-baseline-2026-04-19.md flagged this). Resolve in Phase 0 / 8.
• Brex auto-generates wire memos that look legally descriptive but aren't. "OWNER CONTRIBUTION", "RNIE FINES AND CINDY PAYO", etc. — never treat the memo as authoritative for accounting classification. Audit trail is the source.
• Memo "RNIE FINES AND CINDY PAYO" specifically: prior interpretation as a Cindy separation payout was wrong (Austin direct 2026-05-09). Wire's actual purpose unresolved; do NOT book to a Cindy-severance line.
• Custom Connection scope changes require re-authorization from Austin. Don't request scope changes mid-month-close.
• Books that look clean but are silently wrong is the headline failure mode for a family office with foreign entities + real estate + intercompany flows + personal overlap + tax-sensitive structures. Mitigations: classification-confidence system (accounting-policy.md §16); evidence + rationale + uncertainty preservation rule (§27); manual-until-stable areas (§23); exception log (accounting/exception-log.md); advisor decision register (accounting/advisor-decision-register.md).

---

8. Index of supporting docs

Granular per-topic docs that this scaffold references but does not duplicate:

Topic	File
Accounting policy memo	accounting/accounting-policy.md
Source-of-truth matrix	accounting/source-of-truth-matrix.md
Entity tax-classification matrix	accounting/entity-tax-classification-matrix.md
Advisor decision register	accounting/advisor-decision-register.md
Transaction coding rules	accounting/transaction-coding-rules.csv
Exception log	accounting/exception-log.md
Intercompany ledger (subledger)	accounting/intercompany-ledger.csv
Casa Moksha reservation ledger (subledger)	accounting/reservation-ledger-casa-moksha.csv
Loan register (subledger)	accounting/loan-register.csv
Property capex register (subledger)	accounting/property-capex-register.csv
Crypto subledger	accounting/crypto-subledger.md
Decisions of record	decisions/log.md
Live Xero baseline (snapshot)	accounting/xero-baseline-2026-04-19.md
Original 4-tier plan (now superseded)	accounting/xero-brex-setup-plan.md
Chart of Accounts	accounting/chart-of-accounts.md
Vendor mappings + auto-categorization	accounting/vendor-mappings.md
Foreign-entity JE templates (Type A LOCAL-SUMMARY + Type C US-TAX-ADJ)	accounting/je-templates-foreign-entity.md
Intercompany clearing JE recipes (Type B sub-flows)	accounting/je-templates-intercompany-clearing.md
RFH ↔ RHG intercompany mockup	accounting/casa-moksha-intercompany-mockup.md
Casa Moksha guest revenue ledger	accounting/casa-moksha-guest-revenue-ledger.md
Casa Moksha capex inventory	accounting/casa-moksha-capex-inventory.md
JME deliverable status	accounting/jme-deliverable-status.md
JME 2025 annual deliverable	source-data/jme/2026-04-29/
JME multi-year FS (2023–2025 signed)	source-data/jme/2026-05-08/
Moksha-rollup execution log	accounting/moksha-rollup-plan.md
Moksha → RFH diff	accounting/moksha-rfh-diff-report.md
JME-vs-Moksha opening-balance recon	accounting/jme-moksha-opening-balance-recon-2026-04-29.md
Mita purchase-price reconciliation	accounting/mita-purchase-price-reconciliation.md
AFR loan amortization template	accounting/afr-loan-amortization-template.md
Personal-card business-expense workflow	accounting/personal-card-business-expenses.md
Five Points / 1006 / Woolworth SBA narrative	accounting/five-points-1006-sba-narrative.md
Brex 15-account map	banking/brex.md
Santander MXN	banking/santander-mxn.md
Tokyo Star Bank	banking/tokyo-star-bank.md
JPMorgan Chase	banking/jpmorgan-chase.md
Coinbase	banking/coinbase.md
Wells Fargo personal	banking/wells-fargo-personal.md
Monarch coverage map	banking/monarch-coverage-map.md
Pearce 2025 working agenda	tax/2025-filing-prep.md
Pearce email-mining summary	tax/pearce-bevill-thread-summary.md
Tax strategies reference	tax/tax-strategies-reference.md
Advisor tax-benefit areas	tax/advisory-tax-benefit-areas.md
FBAR analysis	tax/fbar-analysis.md
Intercompany services agreement draft (RFH↔RHG)	legal/intercompany-services-agreement-draft.md
Treasury framework draft (RFH↔GK)	legal/rfh-gk-treasury-framework-draft.md
Cindy consignación timeline	legal/cindy-consignation-timeline.md
Tech automation queue	todo/tech-automation.md
Remaining work rollup	todo/remaining-work-summary.md
For-Austin actions	todo/for-austin.md
For-advisors batched asks	todo/for-advisors.md
JME questions email draft	todo/jme-questions-2026-04-29.md
Email drafts queue (Pearce, Stuart Memory)	todo/email-drafts/

Scripts:

Script	Purpose
scripts/fpa/xero_client.py	Custom Connection client + CLI
scripts/fpa/xero_backup.py	Daily full-org JSON backup
scripts/fpa/xero_diff_tenants.py	Cross-org diff (used in Moksha rollup)
scripts/fpa/xero_migrate_moksha.py	Moksha-rollup execution
scripts/fpa/xero_add_tracking_categories.py	Entity + Asset Class install
scripts/fpa/xero_apply_bill_tracking.py	Bulk bill tagging
scripts/fpa/xero_add_mxn_tax_rates.py	IVA rate install
scripts/fpa/xero_merge_portilla.py	Contact merge
scripts/fpa/xero_cleanup_brex_dupes.py	Brex duplicate-pair archive
scripts/fpa/xero_rename_accounts.py	Account rename utility
scripts/fpa/xero_cc_sort.py	Credit-card classification
scripts/fpa/xero_add_missing_brex_accounts.py	Brex sub-account add
scripts/fpa/xero_portilla_ap_cleanup.py	Portilla AP tidy
scripts/fpa/brex_client.py	Brex API client (used for Casa Moksha guest-revenue wire-level recon)
scripts/fpa/afr_amortization.py	AFR loan amortization generator

---

9. Maintenance / hygiene

This file is a living document. Update at the end of every Xero buildout session:

• Move done items from "What's still open" (§2) to "What's been completed" (§2)
• Update Phase exit-criteria status
• Append new open architectural decisions (§5) as they surface
• Capture runbook deltas (§6) when monthly close turns up surprises
• Surface new risks (§7) as we hit them

Don't let this file ossify. A scaffold that doesn't reflect reality is worse than no scaffold — it gives false confidence and buries the real blockers under stale text. The repo's hygiene playbook (playbooks/maintenance-hygiene.md) runs every Wednesday at 9:30am MT and surfaces drift.

---

10. Decision: when is the buildout "done"?

Done state: every business-relevant transaction across every business-relevant entity flows into a single Xero org under the right Entity + Asset Class tracking, on a cadence that supports a 3-business-day monthly close, with quarterly tax / advisor packages generated automatically from the same data, and a forecasting layer giving 12+ months of cash-flow visibility under base / bull / bear scenarios.

Concrete checklist:

• Phase 0 cleanup polish complete (mortgages reclassified, test rates removed, AP bills coded)
• Phase 1 COA finalized + Pearce-reviewed
• Phase 2 Brex 2024+ history backfilled; Monarch RFH-subset imported
• Phase 3 Amex direct feed + Plaid pipeline running for every non-Brex card
• Phase 4 RHG + GK summary JEs posting cleanly
• Phase 5 Two consecutive 3-business-day monthly closes
• Phase 6 Quarterly Pearce + JME + ABS packages auto-generating
• Phase 7 Forecasting tool live with 3 scenarios
• Phase 8 governance cadence running unattended

When every box ticks, this file's purpose shifts from buildout roadmap to ongoing-operations playbook.