It CAN Be Done!
By Eddie Nelson
How to get your balance sheet in balance
- Reconcile your bank statements using the
reconcile button in Bank Ledgers.†
This means:† Make TCS bank
ledgers match your bank statements from the bank.
- Verify that all items showing in damage deposits
held are accurate
- Verify that all items showing in prepayments
held are accurate
- Look at owner accounts mode on current, set the
start date to 1/1/1980, set the end date to the last date you balanced
forward.† Make sure there are not old
items left out there that were set to ďNĒ donít pay.† Verify all items in the current period
- Look at vendor payables and verify there arenít
any old items that need to be cleared out.
- Make sure there are no old taxes that need to be
cleared out of the system.
- Once all the previous items are addressed the
amount of difference on the balance sheet is the amount your escrow is out
- Make the necessary adjustments to your escrow
account by writing a check or making a deposit depending whether you are
short or over.
- You are back in balance.
- † Always
print your balance sheet before and after you print owner checks, balance
forward owner accounts, pay vendors, pay taxes, do damage deposits/
prepayment refunds, or make bank deposits.† If you are in the habit of always printing your balance
sheet before performing the various accounting functions you can catch
mistakes as they happened, greatly reducing the amount of time required to
find your mistake.
Things that will cause you to be out of balance
- Failure to account for and replace credit card
fees if they are being deducted from your escrow account
- Hand written checks.† If you cut all of your checks from the software and post
them to the bank ledger, the checks on your bank statement cannot be
different from the TCS bank ledger unless there is a bank error.
- Receiving a prepayment as a regular balance
payment or rent received account.
- Manually marking items as already having been
paid or not paid in vendor payables, owner accounts, or tax payables.
- Changing transactions that have already been
paid.† The system should not let
- Deleting paid transactions.† The system should not let you.
- Trying to do your escrow accounting in some
other system.† This eats up a lot
of extra time re-entering the financial data into the other system and
opens up more chance of a data entry error.† The extra time would be better spent learning how to do it
all correctly in TCS.