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Set Up an Accounting Start Date For Your Bank Accounts and Leases
Set Up an Accounting Start Date For Your Bank Accounts and Leases

How to implement your chosen accounting start date in DoorLoop

Nolan Hofstee avatar
Written by Nolan Hofstee
Updated over 7 months ago

Overview

You’ve decided on an accounting start date for your bank account, and now it’s time to implement that date in DoorLoop. Whether the date is now, in the future, or the past, you will need the following information:

  1. Bank account opening balances: from your bank statement

  2. Uncleared bank transactions: undeposited payments, both incoming and outgoing

  3. Tenant carry-forward lease balances: what your tenants owe

Bank account opening balances

To accurately track a bank account balance, DoorLoop needs an opening balance amount. All revenue to this bank account is added to—and paid expenses get subtracted from—this opening balance amount.

The opening balance is the amount in the bank account at the end of the day prior to your accounting start date. For examples:

  • If you are starting on the 1st of a month, enter the ending balance from the last day of the previous month.

  • If you are starting at the beginning of this year, enter the balance on Dec. 31 of last year.

As you use DoorLoop, if you’ve entered your opening balance and all transactions correctly, the resulting DoorLoop Balance will match your real-world bank balance.


Uncleared bank transactions

When you set an opening balance, there may be uncleared or pending transactions for this bank account. It is important to note these transactions, because they will not be included in the opening balance amount.

In order for your DoorLoop Balance to accurately reflect your real-world bank balance, these pending transactions need to be created in DoorLoop because they were not included in the opening balance amount.

It's ok if the payment or expense dates you enter in DoorLoop are before your accounting start date, they will still add to or subtract from the opening balance. This is also why it is important not to create payments and expenses already included in your opening balance—they will essentially be counted twice in your DoorLoop balance!

Alternate advanced method: Edit your bank account opening balance to include the uncleared transactions.


Tenant balances

When you choose an accounting start date, your tenants may either owe money or have lease credit from early or overpayments as of that date. If so, this needs to be reflected on their leases so future lease transactions reflect the true running balance.

To enter a beginning balance owed on a lease:

  1. To enter a beginning balance owned on a lease, click Leasing on the main menu and then click Active Leases. Find the lease you need to enter a balance for and click on it.

  2. Click the Transactions tab and click on the Post Charge button.

  3. For the Due Date, enter the accounting start date.

  4. For Category, pick the revenue account of the charge still owed.

  5. For the optional Description, enter something like “Carry-forward balance” to help you remember why you created this charge.

  6. Enter the Amount.

  7. Add additional charges to other revenue accounts using the Add Line Item link as needed.

  8. Click Save when you are finished.

To enter a starting credit balance for a lease:

  1. To enter a starting credit balance for the lease, click Leasing on the main menu and then click Active Lease. Find the lease for which you need to enter a balance and click on it.

  2. Click the Transactions tab and click on the Issue Credit button.

  3. For the Date Issued, enter the accounting start date.

  4. For Category, pick “Opening Balance” because this money is already reflected in the opening balance of one of your bank accounts.

  5. For the optional Description, enter something like “Carry-forward balance” to help you remember why you created this credit.

  6. Enter the Amount.

  7. Click Save when you are finished.

That’s it! With your accounting start date set, opening balances entered, and pending transactions accounted for, you are set to track all future transactions in DoorLoop.

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