Transitioning to REI Hub from another bookkeeping system
Ready to take advantage of REI Hub's property accounting software, but aren't sure what's involved in making the switch from your current bookkeeping system? You're in the right place!
When transitioning accounting systems, the best practice is to choose a date to make the switch, and then transition balances from the old system to the new. This is faster, easier, and more practical than attempting to move over the entirety of your transaction-by-transaction records. You can export or save the general ledger from your previous system in case you ever need to reference individual transaction records.
To transition into REI Hub from another accounting system:
1) Set up your REI Hub Portfolio
You have probably already gotten started with this! Before you move any records over, make sure your REI Hub Portfolio is set up to receive that information. This means creating in REI Hub all the Properties, Units and various Accounts (Banking, Loan, Fixed Asset, etc) that already exist in your current accounting system.
You'll also want to check your current Chart of Accounts and Update the Chart of Accounts in REI Hub if needed. Do note that Banking, Loan, and Fixed Asset Accounts should be created from their respective pages on the left side menu, under Accounts.
Check out our REI Hub Overview and Getting Started Guide for more information and instructions!
2) Choose your Bookkeeping Transition Date
Choosing a Bookkeeping Transition Date is an essential part of transitioning from one accounting system to another. It provides a clear demarcation of where your transaction by transaction records are, and which set of records should be considered definitive for a given time period.
You can choose any date as your Bookkeeping Transition Date. The most commonly chosen date is January 1, as operational revenue and expenses are reported on a calendar year basis. Since they reset on January 1, there will not be a balance to set. If you choose a date other than January 1, you will need to set Opening Balances for your standard Revenue and Expense Accounts in addition to Asset, Liability, and Equity Accounts. Otherwise, you will need to reference information from both systems when preparing your tax return.
3) Determine the closing balances of your previous system
If your REI Hub Bookkeeping Start Date is January 1, then your bookkeeping close date in your old system is December 31. Pull the balance sheet or closing balances in your old system for the bookkeeping close date. How to do this will vary based on your current system.
How many account balances you will transition over depends on your portfolio size and how you have your books structured in your old system. Here are some key Accounts to make sure to include:
- Banking Accounts dedicated to the Portfolio or business.
- Loans associated with specific Properties or the overall Portfolio.
- Fixed Asset Accounts for each Property including basis information: Buildings (depreciable), Land (non-depreciable), and Accumulated Depreciation.
4) Set Opening Balances in REI Hub
You should have set your REI Hub Bookkeeping Start Date during Portfolio setup. If not, confirm or set it under Portfolio Settings in the right side menu.
Take the closing balances from your old system, and enter them as Opening Balances in REI Hub. You should have an Account available in REI Hub for all of your balances.
Click here to read more about Entering Opening Balances!
5) Keep your books in REI Hub
All transactions after the Bookkeeping Transition Date should be booked in REI Hub. Since you have correctly set your Opening Balances, your records should be accurate moving forwards!
Export any records desired from your old system before you close or lose access to it.
6) Contact us with any questions
You can submit a ticket through the Knowledge Base, when you're logged into your account via Contact Us, or just send us an email at email@example.com.