Add an adjusting entry for a new opening balance

    1. Choose a date for when you'd like to have accurate numbers in Buildium.

      For example, if you plan to have accurate numbers in Buildium beginning in January, you'll want to gather numbers as of December 31 at close of business.

    2. Gather the correct, "real world" numbers by property.

      For example, Main Street has $1000 in the bank as of December 31, South Street has $4050, and Wallaby Way has $300. In total, there is $5350 in the bank and this number is reconcilable to your bank statement as of December 31.

    3. Fix undeposited funds. Make a single, large bank deposit to deposit any payments that were put into the bank before your chosen date from step 1 above. see "Bank deposits"

      For example, you have $10,000 in undeposited funds from payments that were made during the eight months prior to making the decision to use Buildium's banking features. Deposit all of these funds into a single bank deposit.

      If any of the payments are recent and were deposited after December 31, do not include them in this adjusting bank deposit. Instead, you'll add them in January now that you're using Buildium's banking features.

    4. Gather the Buildium numbers by property. To get these numbers, run a cash basis balance sheet "as of" your chosen date. see "Balance sheet report"

      For example, Buildium's balance sheet shows that Main Street has $1500, South Street has $5000, and Wallaby Way has -$200.

    5. Create a list of adjusting transactions that you'll need to make:

      property "real world" totals as of December 31 Buildium totals as of December 31 Necessary adjustment
      Main Street $1000 $1500 subtract $500
      South Street $4050 $5000 subtract $950
      Wallaby Way $300 -$200 add $500
      etc      
      etc      

 

  1. Create adjusting entries, one per property. Your date will be December 31 and you should use a memo like "adjusting entry". see "Other Bank Transactions"
  2. Rerun your balance sheet to make sure the numbers in Buildium match the numbers in your real world calculations.
  3. Reconcile your bank account. Include all of the deposits before your date, all checks that have definitely cleared, and all of your adjusting transactions.

    If you can successfully reconcile, you're all set!

    If you cannot reconcile, then you should look back to make sure all of your properties' money has been accounted for.

 

Article #: 111182

 

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