Overview

An opening balance is the amount of money in an account at the start of an accounting period. For example, the amount of money in a bank account when it is opened. In DoorLoop, the start of your accounting period is your accounting start date. Your account opening balances summarize everything before this period.

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.

Note that before starting the Opening Balance Wizard, you need to enter all the properties you will be managing first, prior to your Accounting Start Date. This can be done manually or via data entry on our end.

How should you set your Opening Balance though? Follow the handy wizard below.

If you know the balance of each property associated with this bank account and all the available funds are tied to those properties, great! That means you can set the balances for each property and you're done. Note that the amounts set for each property should equal the total amount of the opening balance.

However, if you don't know what the balance of each property is or there are other funds included that are not part of your properties, move to Step 2.

If all the cash in your bank account is related to your properties, then what you can do first is record what you're holding in security deposits for each property. For example, you have $15,000 in your bank account, but while you only know that $10000 is from security deposits, you don't quite know what the other $5,000 is from.

In this case, we would enter $10,000 first as your opening balance and set the balances for each property based on the security deposits. Once you know exactly how to distribute the extra $5,000, you can go back and edit your opening balance.

At this point, you are done.

However, if the bank account has funds that are not all associated with your properties and you want to record those funds, move to Step 3.

Like the previous steps, you'll want to associate the funds that belong to your properties, with those properties. At a minimum, you want to take into account all the security deposits first for each property. Then whatever other funds are associated to those properties.

Whatever is left that still has to do with your business, add those funds to a Business Property. What this is is basically a property that represents your business where you record income or expenses that are not associated with your properties in general.

However, if you prefer not to account for funds that are not related to your properties, simply just record the security deposits for each property and set your opening balance based on that.