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What is Adjusted Cash Balance?

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The Adjusted Cash Balance represents the amount of money you should have in your bank account, assuming all of the transactions you’ve entered in AppFolio are accurate. The Adjusted Cash Balance is calculated from the following:

  • Property balances (only from properties linked to the current bank account)
  • Less unreconciled deposits
  • Less unreconciled receipts deposited after the reconciliation period
  • Plus unreconciled checks
  • Plus unreconciled eCheck or ACH batches and reversals
  • Plus unreconciled eCheck or ACH batches generated after the reconciliation period
  • Plus uncleared checks voided after the reconciliation period

The Adjusted Cash Balance must match the cleared and ending balances in order to successfully reconcile. We call this a "triple tie-out." If your reconciliation is not triple tied-out, the Adjusted Cash Balance appears in red in the Reconciliation Summary.

[accounting]

What’s New In Appfolio – Management Agreements

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To help keep all of your Property Management Agreements in one place, you can now upload any PDF agreement to the Management Agreements section of an Owner’s page. Click the "Upload Agreement" button to choose your file, enter the Start Date of the agreement, and optionally include the Termination Date. Uploaded agreements will automatically share to the Owner Portal’s Documents tab.

If you’ve generated any Property Management Agreements within AppFolio and printed them for a wet signature, you can now upload the finalized version. From the Management Agreements page, click "Mark as Fully Executed" next to any printed Management Agreement. You’ll be prompted to upload the signed document, which will save to the Owner’s page and automatically share to the Owner Portal’s Documents tab.

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

Online Lease Agreements

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Good Morning Everyone,

Today we wanted to briefly discuss online leasing in the Appfolio database. This is a very powerful tool that needs to be set up and adopted by each appfolio user. I have created over 100 leases in the appfolio database. Here are a few tips I wish I would have known about years ago.

1. Online leasing begins with your lease document. I would recommend having a local real estate attorney draft a general lease that fits your company and owners needs.
2. By General lease, I mean have the Attorney leave blanks where data needs to be entered. IE: Rent Amount, Deposit Amount, Pet Addendum..
3. Have your attorney deliver the lease to you in a word document.
4. Transpose that word document into appfolio leaving clear blanks where data needs to be entered. Fill in Blanks after to save time in building the doc.
5. Once all verbiage is entered, go back to the blanks and start using the pre fill data options available. Keep in mind you may also create manual fields if you do not see an option. For example if your lease asks how many pets a tenant will have, you would create a manual field and name it: "How Many Pets Does The Tenant Have? (Answer numerical only)" ..This way when creating a lease, you can manually enter how many pets a tenant will have.
6. Each page of a lease has an area to initial at the bottom. Keep this in mind when following along with the lease created for you. If that lease has 10 pages, your online lease should also have ten pages.

Additional Tip: Let the attorney know of the appfolio layout. We only have options for 1 signature spot and multiple initial spots as well.

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.