Balance Sheet: How much of the bank balance is tenant's? View deposits and prepayments at a glance.

What can a balance sheet do for you?

A balance sheet shows your financial position on a specific date: assets (bank balance, receivables owed) and liabilities (tenant deposits, prepaid utility bills, payables). The net of these will indicate your equity. It's not a period's total but a snapshot of financial standing on that specific day.

Most Practical Scenario: Instantly know how much tenant money is under deposit. Deposits and advance payments are funds that eventually need to be returned. When mixed in bank balances, they can easily be spent as if they are your own. The balance sheet lists them separately under liabilities, making it clear which funds cannot be touched.

Procedure

Step 1: Set Report Conditions

Access the report page from the function list (click Reports in the left menu, then click Report) and set the following conditions in order:

• Report Type: Select Balance Sheet.
• Select Property/Owner/Company: Determine the report's scope: a single property, all properties under an owner, or the entire company.
• Report Date: Select a single date. The balance sheet reflects the situation on that specific day, requiring only one date, unlike the income statement which uses a range. This is the most noticeable operational difference.
• Accounting Basis: Choose cash basis (recognized on receipt date) or accrual basis (recognized on invoice date). See FAQ for differences.

Step 2: Generate Report

Click to generate report, system outputs the balance sheet for the specified date, divided into three sections:

• Assets: Resources you own, like trust account balances and accounts receivable not yet collected, totaling assets.
• Liabilities: Money owed to others, mainly to tenants: deposits (refundable upon move-out), unearned revenue (prepaid utility fees not yet offset), accounts payable, totaling liabilities.
• Owner's Equity: Your stake after liabilities, including net income accumulated this period.

Click the print icon at the top right of the report to print directly or save as PDF for accountant or owner.

FAQ

Why do cash and accrual basis report amounts differ?

This is normal. The two bases attribute the same payment to different periods: cash basis considers the received date, accrual basis the due date. Any cross-period transactions (e.g., late rent payments, prepaid income) will result in different amounts, but long-term totals are identical.

How are the Income Statement and Balance Sheet different?

Different time concepts. The Income Statement shows operating results over a period, like from Jan 1 to Jun 30, how much was earned, spent, and net profit, like a video. The Balance Sheet shows financial status at a single point in time, like on Jun 30, the assets and liabilities to tenants, like a photo. Check the Income Statement to see profits for half a year; consult the Balance Sheet for tenant deposits and asset structure.

Why are deposits and prepaid electricity funds liabilities?

These funds belong to tenants and are not your revenue. Deposits are refundable upon tenant move-out; prepaid electricity funds are advanced payments deducted periodically from real consumption, simplifying monthly meter readings, with remaining amounts refundable at move-out. Thus, they appear as liabilities on the Balance Sheet, not the Income Statement. When electricity is deducted, the amount recognized as income appears on the Income Statement.