As DoorLoop is a rental property management software solution, our accounting system works from the perspective of properties. Revenue, expenses, bills, and bank account funds are all related to properties to keep track of a property's finances. In other words, DoorLoop keeps an accurate set of books for each of your properties.
How does this affect bank account opening balances?
Setting balances by property is necessary because DoorLoop needs to know which property balance sheets should reflect the bank account opening balance. If you don't set this correctly, the balance sheets and accounting for your properties won't work properly.
For example, if you are holding security deposits for leases on a property, this money is in a bank account somewhere. When you set up this bank account in DoorLoop, you need to specify that these security deposit funds are meant for this specific property. If you don't, when you go to record a refund that you returned a security deposit to a tenant, DoorLoop will think this property doesn't have the funds to pay back this liability, because you never told DoorLoop that this money was in the bank account specifically for this property!
What if I don't want to track finances by individual properties?
If you truly don't want to track finances by property and instead wish to keep track for your entire portfolio, then you can just split your opening balances evenly among all of your properties.
Or you can create a new “property” that actually represents your business. Then you can set the opening balance for this bank account to your business “property.”