Beginning Trust Balance Entry

This entry is for new VRP customers beginning with a new QBO subscription as of their go-live date.

Updated over a week ago

Please note that if you already have an existing QBO subscription with transactions recorded for your business, there's no need to make this entry.

Establishing a beginning balance entry for your trust account is essential when starting a new QBO subscription on your designated start date. This step ensures accurate tracking of the funds held in your trust cash balance.

At the onset of each month, your trust balance should encompass the following components:

  • Owner income payable from the previous month's bookings

  • Taxes payable for the previous month's bookings

  • Security deposits payable, excluding refunds to customers

  • Advance deposits for future stays

  • Unpaid vendor invoices for owner expenses incurred before go-live

  • Any property management revenue not yet transferred to an operating account

These amounts must be determined to establish your trust's beginning cash balance accurately.

Please note: During the reconciliation process to determine your initial balance entry, it's possible to discover that your trust is underfunded. In such instances, transferring funds from operations becomes necessary to ensure adequate funding.

Did this answer your question?