AppFolio Three Way Reconciliation (Triple Tie Out)
Bank Reconciliation Bank Account Activity Bank Balance Detail
Three Way Reconciliation
Master the essential three-checkpoint system for flawless trust accounting
Three Checkpoints
AppFolio's own guide mandates that all three reports agree on the same date
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Bank Reconciliation Report
Your primary reconciliation document tracking all transactions
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Bank Account Activity
Complete activity log for verification and audit trail
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Bank Balance Detail
Detailed balance breakdown confirming accuracy
Step by Step
Follow this proven workflow for accurate reconciliation every time
1
Pre-checks: Resolve Negative Ledgers
2
Run Bank Reconciliation Report
3
Run Supporting Reports
4
Verify All Three Totals Match
5
Finalize & Lock Period
Pre-checks: Resolve Negative Ledgers
Before starting reconciliation, ensure:
- All negative ledgers are resolved
- Deposit ledger equals GL liability
- No outstanding discrepancies from prior periods
Source: NARPM best practices
Run Bank Reconciliation Report
Generate your primary reconciliation document:
- Run report to the exact statement date
- Save the report immediately
- Note the ending balance for comparison
Run Supporting Reports
Generate the two verification reports:
- Bank Account Activity - to the same statement date
- Bank Balance Detail - to the same statement date
- Save both reports for your reconciliation packet
Verify All Three Totals Match
Cross-check all three reports:
- Compare ending balances across all three reports
- They must match exactly to the penny
- If discrepancies exist, proceed to the Fix It section below
Success criteria: All three balances are identical
Finalize & Lock Period
Complete the reconciliation process:
- Save complete reconciliation packet
- Sign and date all reports
- Lock the prior period in AppFolio
- Archive documentation for compliance
Fix It:
When your three reports don't match, start here
Undeposited Receipts Not Cleared
Problem: Receipts showing in system but not reflected in bank balance
Solution:
- Locate uncleared receipts in AppFolio
- Deposit them immediately OR
- Re-date to match actual bank deposit date
- Verify receipt appears on correct statement period
01
Undeposited Receipts Not Cleared
Problem: Same transaction imported multiple times
Solution:
- Identify duplicate entries by date and amount
- Delete the extra/duplicate transaction(s)
- Keep only one accurate record
- Review import settings to prevent future duplicates
02
Security Deposits in Operating GL
Problem: Security deposits incorrectly booked to operating account
Solution:
- Identify all security deposit transactions
- Reclassify from operating GL to deposit GL
- Verify proper account segregation
- Update procedures to prevent future misclassification
03
Old Open Checks
Problem: Outstanding checks from previous periods
Solution:
- Review all checks older than 90 days
- Contact payees to verify status
- Void stale checks in the system
- Reissue new checks if payment still needed
- Document all void/reissue actions
04
Discover our comprehensive Three way trust reconciliation expertise and how we help streamline your property accounting
Read MoreGet Your Free Checklist
Download the complete AppFolio 3-Way Reconciliation Checklist (PDF) and never miss a step
Security Deposits
Simplify compliance and your 3-way reconciliation with proper account segregation
Recommended Setup:
Operate two separate bank accounts:
Operating Trust Account
For rent, fees, and operating expenses
Security Deposit Account
Exclusively for tenant security deposits
Benefits:
