Preparing your financial records before establishing your account in Roxby supports a reviewable cutover. The quality of the forward-looking books depends on the source records, reviewed opening balances, and documented unresolved items included at the boundary.
Gathering your source documents and structuring a clean cutover package before onboarding eliminates the risk of importing corrupted historical spreadsheets, missing uncleared checks, or misallocating owner equity.
Direct Answer: What records are required to prepare a cutover into Roxby? Preparing for cutover requires four core sets of source documents: (1) official monthly statements for all operating checking, savings, credit card, and mortgage accounts as of your chosen cutover date; (2) historical property asset basis and depreciation schedules from your most recent filed tax return Form 4562; (3) active booking channel statements (Airbnb and Vrbo) detailing scheduled future payouts; and (4) an itemized list of any uncleared checks or pending deposits in transit as of the cutover date.
Before you begin
Complete these preparatory checks before assembling your cutover package:
- Select a Defensible Cutover Date: Choose a date that corresponds to an official statement cycle, preferably the first day of a calendar year (January 1) or the start of a calendar quarter.
- Preserve Source Documents in Original Form: Keep downloaded bank PDFs, credit card CSVs, and channel earnings reports in an unedited archive folder. Never edit source CSV files directly before ingestion.
- Verify Ownership and Legal Structure: Confirm whether properties are held in an LLC, partnership, or individual name, ensuring opening equity accounts align with your legal entity structure.
- Consult Your CPA on Opening Balances: Review your proposed opening balance sheet with your tax professional to verify that property basis, land values, and prior accumulated depreciation match filed tax schedules.
Worked numerical example: Opening balance sheet schedule for cutover
To understand how source records synthesize into a verified opening balance sheet, consider a host onboarding a vacation rental with a cutover date of January 1:
| Balance Sheet Classification | Specific Asset / Liability Account | Amount as of Cutover Date | Source Document for Verification | Ledger Role |
|---|---|---|---|---|
| Current Assets (Cash) | Operating Checking Account | $12,450.00 | December 31 Official Bank Statement | Confirmed Cash Balance |
| Current Assets (Cash) | Operating Reserve Savings | $10,000.00 | December 31 Bank Statement | Dedicated Maintenance Reserve |
| Fixed Assets (Real Property) | Building Basis (Structure) | $320,000.00 | Form 4562 / Settlement Statement | MACRS 27.5-Year Asset |
| Fixed Assets (Land) | Land Basis (Non-Depreciable) | $80,000.00 | County Tax Assessment / Appraisal | Permanent Non-Depreciable Asset |
| Fixed Assets (Furnishings) | Furniture and Equipment Basis | $25,000.00 | Itemized Invoices / Prior Depreciation | MACRS 5-Year Asset |
| Contra-Asset (Depreciation) | Accumulated Depreciation | -$34,200.00 | Prior Year Form 4562 Depreciation Schedule | Offsets Historical Asset Basis |
| Current Liabilities | Operating Credit Card Balance | -$3,250.00 | December Statement Ending Balance | Short-Term Operational Debt |
| Long-Term Liabilities | First Mortgage Principal Balance | -$280,000.00 | Year-End Lender Statement / Form 1098 | Long-Term Secured Note |
| Owner Equity | Owner Capital Investment / Equity | -$130,000.00 | Net Balancing Equity (Assets minus Liabilities) | Reconciles Balance Sheet to Zero |
| Total Balance Sheet Net | Sum of Debits and Credits | $0.00 | Assets ($413,250) = Liabilities + Equity ($413,250) | Perfect Double-Entry Alignment |
In this opening schedule, every single figure ties directly to an external, verifiable third-party document. The double-entry equation balances to zero, providing an unassailable foundation for future financial reporting.
Source record requirement master table
Use this matrix to verify that you have collected all required records for each asset and account class:
| Account Class | Required Source Document | Essential Data Fields Required | Common Pitfall to Avoid |
|---|---|---|---|
| Operating Bank Accounts | Official December or prior month bank statement | Statement end date, ending settled balance, bank account number | Using the real-time "available balance" which includes pending charges |
| Operating Credit Cards | Official credit card statement ending on cutover | Statement closing balance, minimum payment, card issuer details | Missing transactions that occurred between statement close and cutover date |
| Mortgages and Loans | Year-end mortgage statement or Form 1098 | Principal balance remaining, escrow balance, interest paid | Combining principal and escrow into a single liability balance |
| Rental Property Basis | Closing settlement disclosure (ALTA/HUD-1) and Form 4562 | Acquisition price, closing costs, structural allocation, land value | Depreciating the entire property acquisition cost without separating land |
| Capital Furnishings | Receipts, invoices, and prior depreciation schedules | Item description, acquisition date, cost, depreciation method | Re-depreciating furnishings that were fully expensed under Section 179 |
| Booking Channels | Airbnb and Vrbo gross earnings summaries | Reservation rosters, payout breakdowns, platform fees, taxes | Using net bank deposits rather than gross platform earnings reports |
| Uncleared Items | Check register and deposit slips | Check numbers, payee, date issued, amount | Forgetting checks written before cutover that clear the bank after cutover |
Step-by-step procedure: Assembling your cutover package
Follow these steps to gather and verify your records before cutover:
- Download official statement PDFs and raw transaction CSVs for all property-related checking, savings, and credit card accounts for the period ending immediately prior to your cutover date.
- Obtain your most recently filed federal tax return, specifically Form 1040 Schedule E, Form 4562 (Depreciation and Amortization), and the accompanying asset depreciation schedules.
- Request your year-end mortgage statement or Form 1098 from each verified lender to separate outstanding principal debt from property tax escrow balances.
- Export your complete historical reservation and payout transaction summaries from Airbnb, Vrbo, and any direct booking merchant processors.
- Create an itemized list of any uncleared checks written prior to the cutover date, as well as any booking deposits currently in transit.
- Verify that total assets equal total liabilities plus owner equity on your cutover worksheet before entering opening values in Roxby.
Confirm the result
You have successfully prepared your cutover package when:
- Every bank, credit card, and loan balance matches its official external statement as of the cutover boundary;
- Fixed asset values (structure, land, furnishings) and prior accumulated depreciation match your official tax schedules;
- Uncleared checks and deposits-in-transit are isolated so they do not duplicate entries post-cutover;
- Your opening balance sheet differences are resolved or documented, leaving your account ready for supported imports and monthly review.
Edge cases and common cutover challenges
1. Prepaid guest bookings for future stays
If you collected funds in December for a guest reservation taking place in February, that cash represents unearned revenue (a current liability), not current rental revenue. If your cutover date is January 1, record the advance cash on your balance sheet and create a liability for Unearned Guest Revenue. When the stay occurs in February, reclassify that liability into recognized rental revenue.
2. Security deposits held in escrow
If you collect refundable security deposits for direct bookings, those funds do not belong to you; they belong to the guest until earned or returned. Ensure security deposits are placed into a separate liability account titled Guest Security Deposits Held rather than inflating operating cash flow.
3. Joint accounts used for multiple properties
If you use a single checking account to manage three separate short-term rentals, do not attempt to divide the bank account into three separate accounts. Maintain a single operating cash account on your balance sheet and use property tags to allocate individual income and expense items to each respective property.
Reviewed onboarding with Roxby
Entering a reviewed cutover package into Roxby establishes the opening boundary for forward-looking books.
Roxby provides guided balance-first cutover for self-managing hosts and real estate investors. Reviewed opening balances, supported statement imports, and monthly closes feed property-level financial reporting and source-linked accountant exports. Unresolved differences remain visible, and the workflow does not guarantee an audit or filing outcome.
This article provides educational guidance for accounting and recordkeeping workflows and does not constitute tax, legal, or professional financial advice. Consult a licensed CPA or tax attorney for specific tax determinations.