Overview

To ensure your financials are correct, it is important that you reconcile accounts going back to the opening balance you entered for them as of your accounting start date. This can take some time until you catch up to your most recent bank statement, but a complete reconciliation is well worth it!

Also, unreconciled transactions will always show in the list of transactions available to reconcile, so you can't just skip them. This is built-in to ensure your accounting is correct.

The explanation below will cover how to reconcile back to your opening balance and accounting start date, even across multiple bank statements. You can reconcile correctly by accounting for all the transactions, or you can make an adjusting entry to bring your account balance in line.

For example, you might make the adjusting entry if you don't care to figure out which transactions are wrong from last year and only want to perform reconciliation for this year. To make sure your financials will be ready for tax time, make sure you at least reconcile for this full year!

  1. Account for all transactions

  2. Make an adjusting entry


How to complete your first reconciliation

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!


What if I can't reconcile and don't care to figure out what transactions are missing or wrong before a certain date?

Let's say you only care to reconcile for this year's tax purposes, but you need to reconcile going back to last year. You go to perform a reconciliation from your opening balance date to the end of last year, but your transactions in DoorLoop don't add up to your year-end bank statement.

You decide you don't care to find the problem and just want to start this year's reconciliation from a clean slate. You will still start a bank reconciliation like normal, but when you get to the point of entering a Statement Ending Balance and Statement Ending Date, do the following:

Step 1

Find and enter the year-end balance for this account in the Statement Ending Balance and enter the last day of the year for the Statement Ending Date.

Then click Next.

Step 2

Select all the listed DoorLoop transactions to reconcile by clicking the check box at the top of the column for check boxes.

Your listed Difference will not be $0, as you expected because you know you have missing or incorrect transactions in DoorLoop.

Step 3

To bring the Difference to $0 for last year so you can reconcile the account for this year, you will need to create a positive or negative bank deposit depending on your DoorLoop account balance situation.

Make sure the deposit date you enter occurs during your reconciliation period!

If the Difference is positive:

  • This means you need to increase your account balance in DoorLoop to bring the Difference to $0.

  • You will create a positive bank deposit for this account equal to the Difference.

  • Use this article to review how to create a Bank Deposit.

  • Make sure you choose this account for the Deposit Account at the top and select "Opening Balance" for the Account drop-down in the deposit item information.

If the Difference is a negative:

  • This means you need to decrease your account balance in DoorLoop to bring the Difference to $0.

  • You will create a negative bank deposit for this account equal to the Difference.

  • Use this article to review how to create a Bank Deposit.

  • Make sure you choose this account for the Deposit Account at the top and select "Opening Balance" for the Account drop-down in the deposit item information.

Step 4

The deposit you just created will adjust your account balance for the time period you are reconciling.

Now you can finish the reconciliation by selecting all of your transactions. Your Difference will be $0 because it includes the adjusting entry.

Good work! Now you can continue reconciling your recent bank statements, correctly accounting for all transactions in DoorLoop.

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