Account Balances

Opening account balances is important so you can tell dealr.cloud how much money you have in your account as of the accounting start date. In our case, the accounting start date is February 1st, 2021.

For a demonstration, let's look at an example checking account:

  • August 1st, 2017 - Checking Account Opens w/ $0

  • August 5th, 2017 - Owner deposits $50,000 into the Business Checking Account

  • Between August 5th, 2017 and January 31st, 2021: a bunch of transactions recorded in your previous accounting system; dealr.cloud doesn't need to know about these

    For the purposes of demonstration, let's say the account received $5,000,000 ($5 million) over the course of this time and paid out $4,900,000 ($4.9 million)

  • Accounting Start Date: February 1st, 2021 - Balance is $150,000

What's important to note here is that we don't care about the $5m and $4.9m getting transferred in and out of the account over the past 3 years - all we care about is the opening balance. In this case, that opening balance is $150,000, and we'd record it in the setup screen as $150,000.

We need to do this for all of our accounts as well. Some example accounts you might have here:

  • Assets - Checking/savings accounts, buildings, furniture, non-inventory vehicles. (1000 and 1010 in the image above)

  • Liabilities - Credit cards, mortgages, lines of credit, long term liabilities. (2700 in the image above)

  • Equity - Equity the owner has in the business
    You'd record how much money the owner(s) have in the company in an equity account.

Be sure you record this information for all accounts. If you have multiple credit cards, checking accounts, etc. you'll need to enter it in for each account.

Uncleared (Actual) Balance Checkbox

The next point here is regarding the uncleared, or Actual, balance of the account. This is particularly important for your checking account because it's possible you'll have checks that you've written that haven't cleared yet. This checkbox tells dealr.cloud whether the balance is the:

  1. Actual balance (Checked) - if you logged into your bank's website that's the balance it's showing you on the accounting start day

    - This will create an opening balance on day prior to your accounting start date for the amount you entered
    - Any amounts added to Uncleared Transactions will not affect this opening balance, but will affect the total balance on the start date.

    This is by far the easier number to get, since you can simply retrieve it from you bank statements.

  2. Uncleared balance (Unchecked) - you would get this from your previous accounting system; your accounting system will have already had all of your uncleared deposits/withdrawals recorded and can give an accurate accounting balance

    - This will take the amount you entered and adjust it based on any Uncleared Transactions you've entered so that the balance on your start date will begin at the amount you entered.

    This number can be more difficult to determine accurately because your previous accounting system could be missing information

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