# Reports, Reconciliation & Closing

## Cash vs. accrual

Each entity has a default basis (Settings). It's not just a reporting
toggle — integrations honor it. On **cash basis**, rent collected early is
income when the money arrives, so imported prepayments post to income rather
than a deferred-revenue liability. On **accrual**, the same payment carries
a Prepaid Rent liability until it's earned.

Security deposits are the exception on either basis: they're refundable
money you hold for someone else, so they always post to a liability account
— never income.

## Reports

The Reports page serves the standard set — Trial Balance, Profit & Loss,
Balance Sheet, Cash Flow, and General Ledger — each on accrual or cash
basis, exportable, with clickable drill-down to the underlying entries.

For year-end, **Reports → Tax Package** builds a single workbook (cover
page, balance sheet, P&L, trial balance, full general ledger) plus PDFs —
the "final worksheet" your CPA asks for. The built-in **CPA pre-flight**
check runs first: unreconciled accounts, uncategorized transactions, and
suspicious balances get flagged before your accountant finds them.

## Reconciliation

Reconciliation proves your books against the bank's statement. Pick an
account, enter the statement's ending balance and date, and check off
matching transactions until the difference is zero. Completed
reconciliations lock their conclusions — if a reconciled entry is later
reversed or its period reopened, the reconciliation is flagged stale rather
than silently invalidated.

Reconcile monthly. A current reconciliation is the difference between
"the feed imported everything" and "the books are right."

## Periods and closing

Books are divided into monthly periods that are **open**, **closed**, or
**locked**. Posting requires an open period (they're created automatically
as transactions arrive). Closing a period freezes it — late adjustments
mean deliberately reopening, posting, and re-closing, which the audit trail
records.

At year-end, a **closing entry** zeroes the revenue and expense accounts
into equity (by your ownership split). P&L reports automatically exclude
closing entries, so the closed year's income statement stays intact while
the balance sheet rolls the result into equity.