Executing your first monthly close establishes the baseline for your property accounting. In Roxby, the initial close brings reviewed opening balances, supported payout statements, connected bank and card records, and available receipt evidence into one financial period.
Preparing your records before starting the first close eliminates the frustration of searching for missing statements or trying to explain historical balance mismatches while reconciling transactions.
Direct Answer: What is required to prepare for your first monthly close? Preparing for your first monthly close requires choosing a defined cutover date (typically the first day of a calendar month), gathering official bank and credit card statements covering that entire month, exporting reservation and payout summaries from your booking channels (Airbnb and Vrbo), establishing opening account balances, and collecting itemized receipts for operating expenses. Once these source records are assembled, you reconcile bank deposits against channel payouts and lock the period.
Before you begin
Before initiating your first monthly review in Roxby, complete these foundational checks:
- Select an Approved Period Boundary: Choose a clear calendar month to start. If migrating mid-year, start with the most recent completed calendar month rather than attempting to reconstruct years of messy historical transactions.
- Verify Bank Statement Availability: Ensure you have downloaded the official PDF or CSV statements from your financial institutions for the target month. Do not rely solely on active screen balances, which fluctuate with pending transactions.
- Establish Verified Opening Balances: Confirm the ending balance of your bank and credit card accounts as of the day immediately preceding your cutover date.
- Preserve Original Source Files: Store untouched copies of all exported spreadsheets and statements in a dedicated archive folder.
Worked numerical example: Baseline numbers for an initial monthly review
To illustrate how opening records transform into a closed month, consider a host closing their first month of operations (March) for a newly acquired short-term rental:
| Financial / Operational Component | Opening March 1 Baseline | March Operating Activity | Ending March 31 Status | Ledger Reconciliation Target |
|---|---|---|---|---|
| Operating Checking Account Balance | $5,000.00 (Opening Equity) | +$6,815.00 (Net cash flow) | $11,815.00 | Matches March 31 Bank Statement |
| Operating Credit Card Balance | $0.00 | +$420.00 (New charges) | $420.00 | Matches March 31 Card Statement |
| Gross Accommodation Revenue | $0.00 | $7,500.00 (5 bookings) | $7,500.00 | Matches Airbnb March Gross Earnings |
| Turnover Cleaning Fees Collected | $0.00 | $1,000.00 (5 turnovers) | $1,000.00 | Matches Platform Cleaning Receipts |
| Platform Host Commissions (3%) | $0.00 | -$255.00 | -$255.00 | Debited to Schedule E Line 8 |
| Turnover Cleaner Disbursements | $0.00 | -$850.00 (Paid by bank) | -$850.00 | Debited to Schedule E Line 7 |
| Guest Consumables and Linens | $0.00 | -$420.00 (Credit card) | -$420.00 | Debited to Schedule E Line 15 |
| Property Utilities and Wi-Fi | $0.00 | -$580.00 (Bank ACH) | -$580.00 | Debited to Schedule E Line 17 |
| Net Operating Cash Inflow | $0.00 | +$6,815.00 | $6,815.00 | Balances to Net Cash Movement |
Bank cash is $5,000 + $8,500 − $255 withheld fees − $850 cleaner payment − $580 utilities = $11,815. The separate card balance is $0 + $420 purchases − $0 payments = $420. There are no other movements; the card charge is not a bank outflow. The 3% fee is illustrative and no guest taxes are assumed.
First review source record checklist
Gather these records before review. The formats below are evidence you may retain; they are not a promise that each format can be imported. Check the supported data-source list for source-specific imports and connections.
| Record Category | Required Source Documents | Evidence examples (not import support) | Role in the First Close |
|---|---|---|---|
| Operating Banking | Checking and savings monthly account statements | PDF, CSV, OFX, QFX | Proves cash deposits and clearing dates for disbursements |
| Operating Credit Cards | Monthly credit card liability statements | PDF, CSV, OFX | Substantiates supply purchases and utility autopays |
| Channel Payouts | Airbnb Earnings Summary and Vrbo Payout Reports | CSV, XLS, XLSX | Deconstructs gross accommodation, cleaning fees, and host commissions |
| Independent Contractor Records | Cleaner invoices, maintenance receipts, lawn care bills | PDF, JPG, PNG | Proves business purpose for Schedule E Lines 7 and 14 |
| Debt and Escrow | Mortgage interest and property tax escrow notices | Form 1098, Lender statement | Separates principal reduction from deductible interest |
| Prior Bookkeeping | Prior year tax return or final trial balance | Schedule E, General Ledger | Establishes property asset basis and accumulated depreciation |
Step-by-step procedure: Completing your initial monthly review
Follow these steps to execute your first monthly close:
- Gather all official monthly bank and credit card statements covering your chosen initial calendar month.
- Download full reservation and payout transaction summaries from your Airbnb and Vrbo host dashboards covering the exact same period.
- Enter your verified opening bank and credit card balances as of the first day of the month.
- Review each booking channel payout, confirming that gross rent, cleaning fees, and platform commissions match your platform statements.
- Match cleared bank transactions against operating receipts, assigning each transaction to its specific property and Schedule E category.
- Verify that your calculated ending ledger balances equal your physical bank and credit card statement balances.
- Resolve any remaining unreviewed transactions or flag documented exceptions with an explanation.
- Lock the period to finalize your monthly ledger and prevent retroactive modifications.
Confirm the result
You have successfully prepared and completed your first monthly close when:
- Supported operating bank and card records have been reviewed against their official monthly statements, with differences resolved or documented;
- Supported booking-channel statements have been reviewed and their available source components are represented;
- Operating expenditures in scope have a reviewed property and bookkeeping category, with unresolved items still visible;
- The monthly period is read-only unless reopened through the correction workflow, and financial reports are ready for accountant review.
Edge cases during your initial review
1. Mid-month property launch
If you placed your rental property into service mid-month (e.g., March 15), retain expenses incurred before March 15 separately for review. Timing alone does not make them section 195 costs: the preparer must distinguish qualifying trade-or-business startup costs, acquisition or improvement basis, supplies, and other rental expenses.
2. Mixed personal and business bank accounts
If you operated your short-term rental from a personal bank account prior to setting up dedicated business accounts, do not attempt to import your entire personal transaction history. Import only the specific transactions that directly pertain to the rental property, and consult your accountant to establish a clean equity transfer entry.
3. Missing vendor receipts
If a cleaner or handyman was paid via Venmo or Zelle and did not provide an itemized invoice, record the transaction with the bank confirmation note. While a bank record substantiates payment, request an itemized invoice or statement from the vendor for permanent tax files to meet IRS substantiation standards.
Ongoing monthly reviews with Roxby
After completing your initial setup and first close, subsequent monthly reviews take only a fraction of the time.
Roxby imports records from supported connected bank and card accounts and supported official payout statement files. During the monthly close, you review proposed property and bookkeeping categories, source links, and unresolved differences before completion. Reviewed property records feed financial reporting and source-linked accountant exports in supported formats.
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.
Related guides and resources
- The monthly close for short-term rentals
- Learn how reconciliation supports the close
- Move from a spreadsheet to dedicated software
- Prepare records for Roxby
Sources and example scope
Claim-to-source mapping: Rental-cost timing background: Publications 527 and 946. Bank/card equations are the stated fictional inputs; actual supported imports are owned by the linked data-source list.
Editorial source review: September 8, 2026. The linked IRS publications support the rental-income, expense or classification topics identified in their link labels; Form 1099 instructions support payment reporting, not a rental tax outcome. Recheck the filing-year form and these sources when the year, law, provider terms or jurisdiction changes. Product approval history is separate; no professional tax review is claimed.
Numerical scenarios in this article are illustrative, not customer results or professional tax review. Source references support the stated topics; a preparer must apply the rules for the relevant year and facts. Product workflow descriptions are separate from tax determinations.