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Security Clearing Account

Security Clearing Account

What is the Security Clearing GL Account?

Every AppFolio database includes a list of key GL accounts (the Chart of Accounts) prior to going live with AppFolio that includes a Security Clearing GL account.

This account is not necessarily an income, expense, asset, liability or capital type GL account. Security Clearing is a pass-thru GL account most often used for transferring funds between GL accounts and cash accounts, and refunding tenants.

The clearing account should always be at a zero balance when a transaction or set of transactions that use this account are completed. If you are trying to post something that can not be cleared with a zero balance, this then would not be the correct GL account to use.

APM Help gives Property Managers the peace of mind to sleep at night. Get expert property management accounting services, and get your books clean. Call or e-mail today for a free 30-minute consultation or comment below with your questions.

 

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