How it runs for property management companies
A second accountant reviews both packages through Two-Tier Review before owner statements are released and before the company P&L reaches you.
What is month-end close outsourcing?
Month-end close outsourcing means an external accounting team performs the steps that turn a month of transactions into finished financial statements: reconciling every account, posting accruals, prepaids and depreciation, checking cut-off, reviewing and locking the period. You keep your software and your accountant. The provider runs the checklist on an agreed calendar and hands you reviewed statements.
What we handle for property management companies
- Cut-off of receipts and vendor bills at the last day of the month
- Trust reconciliation completed before any owner statement is generated
- Management fees calculated on collected rent and drawn after review
- Owner statements reviewed for reserves, distributions and attached invoices
- Corporate close with fee income reconciled to trust draws
The KPI that matters here
Owner statements released by business day 5 and the company close package by business day 10.
Property management compliance notes
State trust-account rules
Most US states require property managers who hold client funds to use a designated trust account, keep a ledger per owner and tenant and reconcile the account to the bank and to the sum of individual ledgers every month. Some states set deadlines for depositing receipts and prohibit any overdraft of an individual owner's balance. We prepare the ledgers and the three-way reconciliation; the broker of record signs and remains responsible.
Security deposits
Deposit handling is set by state and sometimes city law: where deposits are held, whether interest is owed, how quickly they must be returned after move-out and what deductions need itemizing. We track each deposit by tenant, record deductions with the invoice behind them and prepare the itemized statement inside the deadline for your review.
Owner statements and 1099-MISC
Management companies report rent collected on behalf of each owner on Form 1099-MISC once it reaches the annual threshold, and payments to unincorporated vendors on Form 1099-NEC. Owner statements must agree with the trust ledger and show income, expenses, fees, reserves and distributions. We keep W-9s and cumulative figures current so January filing is prepared for your review.
UK, Canada and Australia client money
UK letting agents must belong to a Client Money Protection scheme and protect tenancy deposits in a government-approved scheme within 30 days. Canadian provinces and Australian states set trust-account, audit and receipt rules for agencies holding rent and bonds. We maintain the records and reconciliations in the format the regulator or auditor expects.
Property management software we work in
- AppFolio
- Buildium
- Yardi
- QuickBooks Online
- Xero
- Bill.com
- Gusto
- Rent Manager
- Propertyware
- All 50 platforms
More for property management companies
Other services for property management
Frequently asked questions
Why should the trust reconciliation come before owner statements?
A statement produced from an unreconciled ledger may show a distribution the bank cannot support or miss a deposit that arrived on the last day. Reconciling first means every owner's statement reflects cleared funds, correct fees and real reserves. It also means a correction never has to be explained to an owner after the fact.
How do you calculate management fees at month end?
Fees are calculated per owner from collected rent in the period, using the percentage or fixed amount in each management agreement, plus any leasing, renewal or coordination fees earned that month. The calculation is reviewed by a second accountant before the draw is posted. The same figures become revenue in the corporate ledger.
What does the company close package include?
The corporate package includes the P&L with fee income by type, revenue per door, payroll and overhead, the balance sheet, the reconciliation between trust draws and recorded revenue, a summary of trust reconciliations completed and a short note on what changed. It is built from reconciled accounts so it can go to a lender or partner as is.
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