Security Clearing Account
A Security Clearing Account is a key GL account.
It is not necessarily an income, expense, asset, liability or capital type GL account. Security Clearing is a pass-through GL Account. This account is most often used for transferring funds between GL accounts and cash accounts, and refunding tenants, so the clearing account should always be at a zero balance.
The clearing account is most often used for the pass-through of Security Deposit funds. It can also be used for other transactions that result in a zero or cancel each other out.
You will need to have the correct user access to find the Security Deposit Clearing Account. This can be found in company settings. Navigate to the top right corner of AppFolio, click your name, and select General Settings.
You can also check to see if your clearing account is at zero by navigating to the Financial Diagnostics page. Once there, scroll down to the Non-Zero Security Clearing Account Balances and it should not have any property items listed. If there are items listed, these transactions will need to be resolved.
This is just a summary of the topic, but you may want more! If you would like more help, please contact APM Help and Bookkeeping for a free consultation today. The APM team consists of Accounting Experts such as CPA’s, AppFolio Experts, and Bookkeepers.
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Theresa @APMHelp and Bookkeeping