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S
SQM
January 30, 2022
Question

Bringing a property management account up to date

  • January 30, 2022
  • 1 reply
  • 0 views

I am an owner and have rented out my condo for 5 years with a property manager but starting Quickbooks for 2021.  I have a property management account set up as a "bank account" just to simulate what goes on with the money.  How do I get that account to show the accurate beginning cash balance since it is carried over from before and I am not planning to enter in all of my property management statements retroactively?  I would like to start it from Jan 2021, so I can accurately reconcile.

 

1 reply

JessT
JessT
January 30, 2022

Hi SQM!

 

It's great to see you again in the Community! I'll help you with adding an opening balance to your property management account, so you can start with your reconciliation.

 

To do this, you can create a journal entry and debit the starting balance in 2021 to your property management account and credit it to Opening Balance Equity. If you haven't created a journal entry in QuickBooks before, you can just click on +New and choose Journal Entry under OTHER.

 

 

 

 

You can also check the video tutorial about reconciling an account in QuickBooks Online. Just an additional reference in case you need it.

 

If you need help along the way, just let me know by commenting below. Take care!

S
SQM Author
January 31, 2022

Thank you!  Would it also be acceptable to just use a transfer from my bank account to the property management account the amount of that opening balance equity?  Or is a journal entry better?  I know the date of the actual transfer from years ago.  

 

 

C
Charies_M
January 31, 2022

Good day, SQM.

 

Yes, you can create a transfer or record a journal entry like the previous agent suggested. However, I'd still recommend to consult your accountant to guide you in handling this situation.

 

If you need steps on how to record a transfer from your Banking page, you can follow the steps below:

  1. Go to Banking on the left menu and choose Banking.
  2. From the For review tab, select the downloaded transaction from your PayPal bank.
  3. Click the radio button for Record as transfer. Choose a Transfer account and Memo if needed.
  4. Click Record transfer.

Another way to transfer funds is by using the Transfer option on your +New icon. Check out this article to learn more about this: Transfer funds between accounts.

 

Get back to me if there's anything I can help you with. I'd be happy to assist you further. Enjoy the rest of the day.

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