Reconciliation—Done
Do your bank statement, book and ledgers tie to the exact same dollar on the same date? If not, then you need three-way trust reconciliation. We make it right across Now you can pass audits, protect funds, and shorten your month-end close.
Deep-dive by
Tailored approaches for each property management vertical
Single-Family Rental (SFR) Properties
Challenges: Negative owner balances, sporadic move-ins/ours, stale checks to small vendors.
Solution: Negative balance monitoring, stale-item policy as well as monthly 3-way packets.
Deliverables: Signed tie-out packet, exception log, owner audit and refund check controls.
Time saved: 4-8 hours per 250 units every month.
Multifamily Properties
Challenges: High transaction volume, month-end cutoffs, prepayments, misapplied credits.
Solution: Bank Sync automation, scheduled owner report batches and coding rules for receipts. Use Rent Manager, Yardi, and RealPage promotes feed-based reconciliation to speed the monthly close.
Deliverables: High-volume SOP, duplicate-receipt monitor, prepayment aging review.
Community Associations (HOA/COA) Trust Accounts (Card)
Challenges: Separate operating with reserve accounts, special assessments and board transparency.
Solution: Separate 3-way per account, reserve study alignment and board sign-off package.
Deliverables: Dual-account reconciliation, reserve reporting and compliance documentation.
Commercial (Office / Retail / Industrial)
Challenges: CAM true-ups, mixed deposit handling, large adjustments.
Solution: Deposit ledger controls, CAM mapping sheet with reconciliation notes.
Deliverables: 3-way tie out, CAM mapping, tenant backup package.
Senior Living Communities
Challenges: Resident personal funds fiduciary rules need clear segregation and statements, family remittances and prayer mix.
Solution: Dedicated resident fund accounts with monthly three-way rec and resident-level ledgers, quarterly statements, policy and bond references. Federal regulations need facilities which can hold resident funds needed to safeguard, manage and account for them.
Deliverables: Resident fund tie-out, statement generator, compliance checklist and assurance documentation.
What a
Actually Ties
Both NARPM and leading property management software vendors outlines the triple tie out this way. For an instance, AppFolio specifies the exact three checkpoint reports to provide proof.
Core 3-Way Process
AppFolio’s “Three-Way Reconciliation Process” outlines the three specific reports, however, Rent Manager helps in automating report batching for compliance packets.
Pull bank statements for both trust and deposit accounts.
Reconcile every account to the same statement date. Also confirm cleared and uncleared balances.
Lock prior period (if supported).
Export the bank reconciliation report and save.
Then export GL or Bank Activity for the period. Also remember to save it.
Export and save client/owner/tenant ledger summary.
Match all the balances and then look for any differences.
Clear any duplicate receipts or mis-postings.
Review outstanding checks/deposits which are older than 60-90 days. Void or reissue as required.
Adjust any owner draws dated beyond the statement cutoff.
Verify security deposit ledger and GL liability matches. If not than fix it.
Attach reports to monthly packets. Then sign it and date it.
Schedule automated delivery for owner and broker packets.
Also maintain an exception log (CSV) with root cause and resolution.
Lastly, mark the period closed.
Our Monthly SOP
Verify Account Balances
Ensure there is no negative owner or tenant balances.
Match Security Deposit Liabilities
Confirm that the security deposit liability equals to deposit subledger for the same date.
Post and Freeze Batches
Post all batches. Avoid back-dating once reconciliation starts.
Get a free consultation and lock in year-round compliance.
The
Check for old outstanding items
void/reissue
Check for duplicate bank feed imports
merge or remove
Align posting and statement dates
Align the statement end date and transaction post dates.
Negative owner/tenant balances?
Resolve negative owner/tenant balances
Misapplied tenant receipts?
Reclassify misapplied receipts
Security deposits in operating?
Recode deposits posted to wrong account
Old credits/charges on ledgers?
Clear old credits or charges
What Looks Like
Many regulators like Oregon’s Agency emphasize on the need for documenting monthly three-way reconciliations with signatures and dates.
Month-end reporting
A complete monthly packer comprises of bank reconciliation, GL/bank activity, ledger summaries, deposit ledger tie-out.
Compliance
Broker or principal signature and date every month.
Surplus
No negative balances.
Periodicity
Consistent monthly cadence.
Platform
Short guides for each system—click below to view full walkthroughs:
Security
Keep operating trust and deposit trust separate—it simplifies your three-way and reduces audit risk
It is best to maintain two separate bank accounts. One should be for operating trust and one for security deposits. This prevents commingling. AppFolio’s trust accounting recommends this segregation.
Include the deposit account in every triple tie out: bank ↔ deposit GL ↔ deposit subledger.
Never issue refunds from the operating account if the liability resides in the deposit trust-transfer funds first. (Per NARPM control guidance).
When to
Cost Efficiency
AP/AR/Bank rec: $11/hr
Month-End Close/CFO: $15/hr
1099/Tax Prep: $20–22/hr
Time Math
For 500+ units, monthly reconciliations can consume 10–20 hours.
Risk Mitigation
Missed reconciliations can trigger license violations in states that require monthly reviews and signatures (e.g., Oregon).
