Overview
In DoorLoop, it is recommended to add an accounting start date to the bank accounts you have added to the system. The accounting start date is the date on which your organization's accounting period will officially begin on DoorLoop. Along with setting an accounting start date for your bank account, you'll also need to set your bank account's opening balances on the accounting start date.
The opening balance is the amount of money in an account at the start of a new accounting period. It is essentially the first entry in the accounts, either when a company is first set up or at the beginning of a new financial period. This summarizes all financial transactions before the accounting start date.
As you record all transactions in DoorLoop going forward, they add to or subtract from the opening balance. If you’ve entered your opening balance and all transactions correctly, the resulting DoorLoop Balance will match your real-world bank balance.
Tip: Setting up your accounting start date and opening balance is essential to keeping accurate financial records.
The Steps
If you have advanced accounting knowledge, you can create opening balances for any account using journal entries. However, we recommend setting opening balances when you create bank accounts so DoorLoop can handle the journal entries for you.
To set up the opening balance for a bank account, click Accounting > Transactions on the main menu.
On the Transactions page, for any bank that doesn't have the Opening Balance set, you can use the "Set Opening Balance" link on the bank account that needs one.
This takes you to the Edit Account window, under the Opening Balances section of your bank account. First set an Accounting Start Date. The accounting start date is the date when you will start tracking transactions in DoorLoop for this account.
Then, enter the Account Balance from your actual bank account at the end of the day before your accounting start date. (For example, if your accounting start date is January 1, enter the bank account balance at the end of December 31.)
Next, enter the breakdown of the bank account balance by property. Select the Property from the drop-down menu and enter that property’s share of the opening balance in the Balance field.
Setting balances by property is necessary because we need to know which property balance sheets should reflect the bank account opening balance.
Use the + Add Another Property link to add more properties.
If you need help setting your opening balances for each property, please refer to the article: Opening Balance Wizard - How to Set Your Opening Balances.
Click Save when you are finished.
If you find that you need to change an opening balance later, follow these instructions.
Next Step
Connect Your Bank Account to Plaid to Aid with Bank Reconciliation - If you want to keep your bank account transactions accurate and up-to-date with your real-world bank account, you can connect your DoorLoop bank account to Plaid. Plaid is a trusted service that helps you seamlessly download your bank transactions and match them to those in DoorLoop.