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.