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Beginning GL Balance Journal Entries

Also referred to as Opening/Starting Balance

(Enter these balances after entering homeowner balances)

To enter the beginning balances for your association, you will need the ending balance of each General Ledger account in your prior software. Report names can vary between accounting platforms, but it is typical to have a General Ledger or Trial Balance report available. You will create one Journal Entry using the values from your report.

Account Types

Assets

  • Owned by the association.
  • Banking accounts (Cash), Inventory, Accounts Receivable, and Fixed Assets.
  • Entered as a debit in the Journal Entry (unless the account has a negative balance).

Liabilities

  • Owed by the association.
  • Accounts Payable, Loans, Capital, Retained Earnings, Prepaid Assessments.
  • Entered as a credit in the Journal Entry.

Equity

  • Money you have invested in the association.
  • Entered as a debit or credit in the Journal Entry

Revenue/Income

  • Funds received by the association.
  • Assessments, Fees, Parking, Amenity Reservations, etc.
  • Entered as a debit or credit in the Journal Entry.

Expenses

  • Funds spent by the association for operation.
  • Repairs, Utilities, Tax Preparations, Meeting Expenses, Landscaping, etc.
  • Entered as a debit or credit in the Journal Entry.
 

Journal Entry

  1. Navigate to Accounting > GL > Journal Entries
  2. Select the '+Add Journal Entry' button
  3. Date - the last day of the month in your prior software
  4. Memo - Example: Balance Forward as of 12.31.2023
  5. GL Code/GL Account - Enter the code or name for a GL with an ending balance.
  6. Cost Center - Select the Cost Center for the specified GL if different than the designated default Cost Center
  7. Debits/Credits - Enter the balance in the appropriate side of the entry. See the Account Types section for additional information and suggestions
  8. Continue adding entries for each GL with an ending balance.
    1. If there is a variance (in red) at the end of your entry, that amount is added to your Capital, Equity or Retained Earnings GL. This amount is your Equity/Net Income (Loss) through the "as of" date.
    2. Crediting for Net Income or Debiting for Net (Loss)
    3. Select the 'Save" button to post
Note: Once this “Beginning Balance” entry is posted, Balance Sheet/Income Statement(s) should have identical Balances in both Prior Financials & Smartwebs Financials.