The Appfolio Experts

Accounting

Troubleshoot the Adjusted Cash Balance Step 1: Bank Reconciliation Diagnostic Report

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Below is important information on troubleshooting an adjusted cash issue. If you are having trouble making heads or tails, let us know and we will help. Typically adjusted cash issues present themselves in the month with erroneous information. If you have been reconciling fine and all of a sudden you notice an adjusted cash issue, odds are the transaction occurred in the month you are reconciling. The biggest culprits are Bank Adjustments, Receipts deposited outside of the current month, or Journal entries.

Open the Reconciliation Report

Open and review the Bank Reconciliation Diagnostic report to check if your adjusted cash balance is still In Balance as of the last statement ending date.

  1. On the bank reconciliation screen in the Reports menu on the right, click Bank Reconciliation Diagnostic. The report will download or open.
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  2. Scroll to the very bottom of the report where your cash balances are listed. Do you see “In Balance” or “Out of Balance”?
  • In Balance – This means that any transactions causing the discrepancy occur are dated in the current statement period. Continue to Step 3: Troubleshooting Adjust Cash Balance to find and fix the transaction(s) causing the discrepancy.
  • Out Of Balance – Navigate to your bank account page and scroll to the bottom. Open your most recently saved reconciliation report and compare if this is saved In Balance or Out of Balance. See Next Steps for direction on how to proceed.
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Next Steps

The next steps for troubleshooting your Adjusted Cash Balance depends on whether your Bank Reconciliation Diagnostic is In Balance or Out of Balance. Look at the following three scenarios to see how to proceed:

Bank Reconciliation Diagnostic Is “In Balance”

Proceed to the first troubleshooting step of this flow chart for steps on how to troubleshoot the bank reconciliation Adjusted Cash Balance.

Bank Reconciliation Diagnostic is “Out of Balance”, Saved Reconciliation Report is “In Balance”

Proceed to Find Backdated or Edited Transactions for steps to troubleshoot.

Bank Reconciliation Diagnostic is “Out of Balance”, Saved Reconciliation Report is “Out of Balance”

If both the Bank Reconciliation Diagnostic report and your saved reconciliation report are out of balance, the next steps depend on if the reports our out of balance by the same amount or a different amount:

  • Same Amount – If both the Bank Reconciliation Diagnostic and your Saved Reconciliation Report are out of balance by the same figure, it is recommended that you submit a support request to have a Customer Success representative take a look before proceeding.
  • Different Amount – if the Bank Reconciliation Diagnostic and your Saved Reconciliation Report are out of balance by different figures, proceed to Unreconcile a Previous Statement Period.

STEP 2 Coming Soon…

Other Receipts

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Today we wanted to discuss "Other Receipts"

In Appfolio under accounting and receivables, you will notice a task named "Other Receipt"

This task is used primarily for any sort of funds coming into your account that you need to make records of. For Example, if you received insurance money to fix a broken deck, you would use the "Other Receipt" Function. It is also important to be aware of which GL account to use. A reimbursable item should be booked differently than rent income.

Here are the steps to enter an other receipt.

Other Receipt (Non-Tenant Receipt)

Accounting > Receivables > Other Receipt

Enter:

  • Received From
  • Amount
  • Property and Unit (If provided)
  • Appropriate GL Account
  • Receipt Date (Date of Check/payment)

Once the receipt is entered, deposit the receipt using the date provided on deposit slip.

Accounting > Receivables > New Bank Deposit

Owner Statement Ending Balance Issues

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Good Morning Everyone,

Today we wanted to discuss owner statement ending balance issues. This issue can seem daunting at times, but we are here to help you breeze right through it. Here are the steps we use to determine a cash balance issue not already evident on the owners statements.

1. You will want to pull up the owners statement in question and see the ending cash balance. For this example, we are going to use an owner with a negative cash balance after we paid him out this month.
2. We noticed on the owners statement that his ending balance after we paid him out was -$100.
3. After we have verified the owner in fact is showing an odd balance, we will go to his property page and determined which fees are suppressed.
4. You will need to go to the reporting section and open a GL report. Run the GL for all time, or since 1900, and filter for the GL accounts that were suppressed on the owners statement.
5. Determine which GL accounts are not 0. Keep in mind, these suppressed GL accounts should have an ending balance of 0.
6. If you are showing a negative number, that means you need to collect that amount of late fees. If you do not collect that amount, the system will pay it to the owner.
7. It is because the fee is suppressed, it does not show as income on an owner statement.. If you do not pay yourself prior to paying the owner, appfolio will pay out total funds held on property including suppressed money not paid to your company.