| Amie | email | May 18 2016, 03:15 PM |
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How come when I write a check to an owner/landlord, that amount doesn't effect the cash flow or any other report, except specifically a check report and it doesn't show up anywhere in the accounting either?? Shouldn't that show as money going out and therefore effect balances in that account? Thanks, Amie |
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| Stephane Grenier | email | May 19 2016, 11:07 AM |
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Hi Amie, The checking system and the accounting system are separate for a number of reasons. It's best to think of the checks as a document holder rather than actual accounting data. The first and main reason is that if you include checks in the accounting reports you will get double entries for your check payments. For example let's say you have a utility bill accounting entry. You then create a check for it. If the software used both you would have two entries. The check is lost so you need to cut another check? But it can quickly get a lot more complicated then that. What happens if instead the check is for a lawn maintenance company and the check is a combination of 4 different accounting entries. In other words each property has it's own accounting entry so that you can run reports by building, etc., so you then select the "Check" button in the accounting section. The software is smart enough to know not to write 4 different checks (checks can cost money but it's also a waste of time) so it will try to combine the accounting entries into one check if certain parameters are met (payment dates, payee, etc.). This then becomes doubly hard to reconcile in an accounting report, not to mention the check is now for multiple properties. Trying to decode all this in the accounting reports will quickly become a nightmare. Another, although rare reason, is when you need to write a check which shouldn't be part of your accounting data. If they are linked then this is not at all possible. There are a few other reasons but these are the bigger ones, one more complex two very nuances, and a few other minor ones. As such what you need to do is create the accounting entry for whatever check you will be printing and view the check entries more as legal records of the checks then actual accounting data that will be available in the reports. Regards, Stephan Grenier Founder LandlordMax Software Inc. http://www.LandlordMax.com http://www.FollowSteph.com |
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