Managing Balance Discrepancies

Rentec Direct property management software provides the tools to quickly balance your account.

Maintaining a balanced account can help ensure you are in compliance with tax laws and regulations, allows you to make informed decisions about the business, and avoid costly mistakes

In just a few quick steps, you can verify your account's status, identify discrepancies, and make necessary adjustments.

1. Verify that strict account rules are enabled. 
2. Review the Balance Sheet report
3. Review the Balance Discrepancies report to identify transactions that do not have a bank account or category indicated and add any missing data
4. Review the Balance Sheet report to confirm it’s balanced

1) Verify Strict Accounting Rules are Enabled

Enabling strict accounting rules ensures that all transactions require a category and bank account, which makes them easy to identify on the Balance Discrepancies report and helps keep your account balanced going forward.

In your Rentec Direct account 

1. Click on Settings
2. Under Financial, click on Accounting Defaults
3. Set Use Strict Accounting Rules to Yes
4. Click on Save Changes

2) Review the Balance Sheet Report

To identify the current status of your account, Review the Balance Sheet report for any discrepancies. 

A balanced account will indicate the Total Assets = Total Liabilities + Equity

In your Rentec Direct account

1. Click on Reports
2. Under Accounting, click on Balance Sheet
3. Select the Report Date
4. Click on Submit
5. Check to see if Total Assets = Total Liabilities + Equity
6. If the account is not balanced, continue to Step 3 

3) Review the Balance Discrepancies Report

The Balance Discrepancies Report identifies transactions that cause your account to be out of balance. Clickable fields allow you to make needed adjustments directly from the report.

In your Rentec Direct account

1. Click on Reports
2. Under Accounting, click on Balance Discrepancies
3. Select the Report Period that coincides with the Balance Sheet Report
4. The missing field will be identified under the Issue header
5. Click on the issue to enter the transaction and make changes
6. Use Page Back to return to the Balance Discrepancies report and continue with corrections as needed
7. When all discrepancies have been resolved, review the Balance Sheet report to confirm the account is balanced

Pro Tips:

• Create a Chart of Accounts for assets, liabilities, revenue, expenses, and equity to keep your money organized and simplify reconciliation
• Monthly Bank Account Reconciliation is important to avoid discrepancies between your records and your bank statement and maintain a balanced account
• If you manage Trust Accounts add Monthly Three-Way Reconciliations to avoid negative financial impacts of any losses arising against your trust account.
• Save copies of all reconciliations