Follow the below steps to reconcile the first month's bank account in Inn-Flow prior to the history import process.
(The below example is if this was a 1/1/2024 Implementation, as in Daily Activity started in Inn-Flow as of 1/1/2024)
All dates will change depending on the implementation start date.
Before history is imported via the trial balance process, enter the December 31st, 2023 Bank Ending Balances.
Entering Bank Balances:
In Accounting / Chart of Accounts / Opening Balances:
Select the Hotel ID on the top left then enter the Bank Actual Balances as of 12/31/2023.
This is a journal entry, so the sum of the bank balance will need to be entered as a negative number into Owners Equity to be able to Save the entry.
This will add the balance as a Starting Balance in the bank account to allow you to reconcile the account to current activity.
Reconciling Deposits In Transit from Prior Month
Deposits that were in transit as of the month prior, in this example, 12/31/2023, should be entered into Inn-Flow as of 1/1/2024. These deposits should be entered exactly as they appear on the prior bank reconciliation report. These should be entered with a vendor PRIOR DATA MANUAL, and posted to the chart of account, 12999 PRIOR BANK BALANCES (Bank Reconciling Entries).
If you are using Custom COAs, this COA may differ.
Deposits In Transit can be entered in the Register page for each bank account via the Add Transaction / Add Deposit option.
Entering this early will help you reconcile early on and to recognize when a deposit is different than the amount originally entered.
Reconciling Checks and Withdrawals from Prior Month
Checks and pending ACHs or Withdrawals that were in transit as of the month prior, in this example, 12/31/2023, should be entered into Inn-Flow as of 1/1/2024. These entries should be entered exactly as they appear on the prior bank reconciliation report. These should be entered with a vendor PRIOR DATA MANUAL, and posted to the chart of account, 12999 PRIOR BANK BALANCES (Bank Reconciling Entries)
If you are using Custom COAs, this COA may differ.
Payments In Transit can be entered in the Register page for each bank account via the Add Transaction / Add Withdrawal option.
Entering this early will help you reconcile early on and to recognize when a deposit is different than the amount originally entered.
Pending Payables: Option 1
Invoices that are pending to be paid, and therefore sit in the Accounts Payable chart of account on the prior system, can be entered into Inn-Flow's Invoice Inbox. These should be entered & posted to the correct expense, in the prior accounting platform, and remain in Accounts Payable as unpaid in the prior system.
In Inn-Flow, you can enter the invoices that are unpaid to pay at your convenience. The above, since expensed in the prior system, would be entered through the Invoice Inbox, payable to the correct vendor, and the chart of account would be COA 21010 Accounts Payable for Implementation.
Doing so will clear out the Accounts Payable balance when history is imported.
IF PRO TIP: This will also allow you to process all payables from one system - Inn-Flow. The sooner this is done, the smoother the transition period will be.
Pending Payables: Option 2
Invoices that are pending to be paid, and therefore sit in the Accounts Payable chart of account on the prior system, can be entered into Inn-Flow's Register / Withdrawal when the payment is processed. For example, if you had invoices that were expensed as of 12/31/2023, and a check was processed on January 5th, 2024, you would enter this into Inn-Flow via the Register / Add Transaction / Withdrawal.
Vendor would be PRIOR DATA MANUAL and the chart of account would be 21010 Accounts Payable for Implementation.
If you are using Custom COAs, this COA may differ.
These transactions are entered to this chart of account because they were already expensed in the prior system but were not paid until after your Inn-Flow Go Live Date of 1/1/2024.
This is how Inn-Flow's Bookkeeping Agents will enter the transactions when they see these checks or payments clear the bank.
IF PRO TIP: Have all invoices from the prior system paid as soon as possible in order to clear out the Accounts Payable for Implementation chart of account.
Once all above items are complete, Bank Reconciliation can be started immediately!