Reconciling your bank statement with transactions in DoorLoop on a regular basis is important to ensuring the accuracy of your financial data. This process helps you find and rectify discrepancies between your bank statement and DoorLoop transactions. In fact, Reconciliation is the first place to start when you notice your reported account balance in DoorLoop doesn’t match your actual bank account balance.
While bank reconciliation is easy to do, DoorLoop offers an additional tool to help you match DoorLoop transactions to those in your bank account. Importing transactions from your bank account via Plaid helps automate matching them to transactions in DoorLoop. Note this is only available if your bank institution is compatible with Plaid.
You don’t need to use our Plaid integration to perform bank reconciliation, however. The steps below are sufficient!
The goal in reconciliation is simple. For the time period you are reconciling (ideally every month!), you have a starting and ending balance for an account. The starting balance is from the last successful reconciliation you did for this account. If you've never done a reconciliation, this number will be the opening balance for the account.
The difference between these two numbers is compared to the total of the transactions you've entered in DoorLoop for that account. The difference should be $0. If it isn't, you have missing or incorrect transactions entered into DoorLoop. Since you will be matching the transactions to your bank statement, you'll easily be able to see which ones are wrong or missing!
Go to Accounting < Reconciliation and click the + New Bank Reconciliation button.
Select the account you want to perform reconciliation for using the Account drop-down menu.
Note that the account must have an opening balance set. Otherwise, there is no starting point to reconcile from. If you haven’t set an opening balance on this account, you will see a warning letting you know this is required. Use the Add Beginning Balance button in the warning message to correct this.
The Statement Beginning Balance shown is the balance from the date of your last successful bank reconciliation for this account. If you’ve never done bank reconciliation in DoorLoop for this account, the amount and date shown is your opening balance entry.
Using your bank statement, enter the new Statement Ending Balance and the Statement Ending Date and then click Next.
On the New Bank Reconciliation page, you will reconcile all transactions from your last reconciliation—or opening balance, if you’ve never reconciled—up to the reconciliation end date you chose in the last step.
Do this by comparing the line items from your bank statement to the line items shown in DoorLoop. Check off the transactions you’ve matched until all are accounted for. If you've connected your bank to import transactions via Plaid and matched them to transactions in DoorLoop, these matched transactions will be checked by default.
As you do this, the window at the bottom of the screen will keep a running total of the Cleared Balance (the total of the boxes you’ve checked) and the remaining Difference between the account’s beginning and ending balances.
Note that if the missing deposit is from a lease payment, make sure you record the payment on the tenant’s lease rather than just creating a separate deposit.
Once you’ve created the new transaction, the reconciliation page will refresh and you’ll see the new transaction added as a line item to reconcile.
If you find a transaction that you created incorrectly, you will need to edit or delete that transaction.
You can do this from within the reconciliation page by clicking on the three vertical dots icon on the right side of the transaction line and choosing View. Then edit or delete the transaction.
You can also use the Save for Later button and then navigate to and delete or edit the errant transaction. (Review how to do that using this article for editing or deleting Lease Transactions and this article for editing or deleting expenses and bills.)
Once the Difference is $0, you can click Finish Reconciliation to continue.
Note that if the difference isn't $0, you won't be able to save, but you can use the Save for Later button so you can finish the reconciliation at another time without losing your work so far.
DoorLoop then takes you to the Reconciliation Report page where you can review the reconciliation work you just did. When you are finished reviewing, navigate away to whatever part of the software you want to use next.
If you selected the Save for Later option in the last step, the account reconciliation will save in a Draft status back on the Reconciliation page.
To finish the reconciliation, click on the line and DoorLoop will take you to the reconciliation page to continue your work.
How do I view the Reconciliation Report later?
Once you complete a reconciliation, you will always be able to return and view the Reconciliation Report.
To do this, go to Accounting < Reconciliation and click on the reconciliation line you want to view the report for.
If you want, you can filter by Account and the Status to narrow down and find the reconciliation.
Why can I no longer edit or delete reconciled transactions?
A reconciliation should be the final sign-off of an account, saying these transactions are confirmed as matching an actual bank transaction. Changing the transaction after the fact would make the reconciliation no longer valid. You should not complete a reconciliation with incorrect information, so DoorLoop doesn’t allow changing reconciled transactions after the fact, as this would break your financial records. Refer to this article to learn more!
If you really do need to change or delete a transaction, you will first need to delete the reconciliation clearing these transactions. In the future, be sure not to clear transactions that you have not actually matched to a transaction in your bank account.
What should I do if I realize I need to undo a reconciliation?
Go to Accounting < Reconciliation and click on the vertical three dots icon to the right side of the reconciliation line you need to delete.
Choose Undo Reconciliation and confirm by clicking the Delete button.
How does Reconciliation handle checks to vendors they haven't deposited yet?
If you've recorded a payment to a vendor that hasn't been withdrawn from your account by the time you are doing reconciliation, this is no problem!
Your statement ending balance won't show that this money has left your bank account, because the check has not yet been cashed.
When you reconcile, you will just leave this transaction unchecked. On the Reconciliation Report, this transaction will show in the Uncleared Transactions section.
The next time you attempt a reconciliation, the un-reconcilied transaction will be there for you to select. If the check was deposited during the time period you are now reconciling for, you can check off the transaction!
How do I Reconcile back to the beginning of my account?
By default, your first reconciliation will go back to the date you set an opening balance. The steps for this first reconciliation are the same as any other, but you will be directed to set an opening balance if you haven't done so.
The difference between your opening balance date and your recent statement ending balance date will likely include multiple bank statements. So instead of just reconciling one bank statement, you will be using multiple statements to complete this first reconciliation. Otherwise everything else is the same!
Refer to this article to learn more about completing reconciliation back to the beginning of the account.
What are some common Reconciliation problems?
When reconciling, if you select all available DoorLoop transactions and your Difference still doesn't equal $0, usually the problem is related to entering incorrect data during a manual process.
Refer to this article to learn more about common reconciliation problems.
How is Reconciliation different from importing bank transactions via Plaid?
Reconciliation is the process of making your DoorLoop accounting consistent with the balance reported on a bank statement from your financial institution. Any difference between the two needs to be examined and fixed.
Connecting your bank accounts in DoorLoop to your actual financial institution via Plaid does not reconcile your account in DoorLoop. Instead, this connection via Plaid is meant to import your transaction data so you can match these real-world bank transactions to your transactions in DoorLoop.
Refer to this article to learn more about Reconciliation vs. Bank Connect via Plaid!