--- title: "Month-end close for property management companies" description: "Month-end close for property management companies: outsourced month-end close: checklist-driven accruals, prepaids, depreciation, reconciliations and a." url: https://ledgerbpo.com/industries/property-management/month-end-close/ updated: 2026-09-11 publisher: LedgerBPO (SS Support Network LLC) language: en-US --- # Month-end close for property management companies Month end close for property management companies has two deadlines: owner statements from the trust ledger and the company's own financials. Your accountant runs both through our CloseTrack checklist: receipts and bills posted through the last day, trust accounts reconciled three ways, management fee draws calculated on collected rent, owner statements generated and reviewed, distributions prepared for approval, then fee income reconciled to the corporate ledger in QuickBooks Online or Xero, payroll posted and prepaid insurance and software spread. - Since 2020 - US · UK · CA · AU - Named accountant plus backup - Your software, no lock-in [Get a custom quote](https://ledgerbpo.com/get-a-quote/) [Book a 20-minute call](https://ledgerbpo.com/book-a-call/) Updated September 2026 ## 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](https://ledgerbpo.com/software/appfolio/) - [Buildium](https://ledgerbpo.com/software/buildium/) - [Yardi](https://ledgerbpo.com/software/yardi/) - [QuickBooks Online](https://ledgerbpo.com/software/quickbooks-online/) - [Xero](https://ledgerbpo.com/software/xero/) - [Bill.com](https://ledgerbpo.com/software/bill-com/) - [Gusto](https://ledgerbpo.com/software/gusto/) - Rent Manager - Propertyware - [All 50 platforms](https://ledgerbpo.com/software/) ## More for property management companies Other services for property management - [Bookkeeping](https://ledgerbpo.com/industries/property-management/bookkeeping/) - [Invoicing and billing](https://ledgerbpo.com/industries/property-management/invoicing-and-billing/) - [Accounts receivable](https://ledgerbpo.com/industries/property-management/accounts-receivable/) - [Accounts payable](https://ledgerbpo.com/industries/property-management/accounts-payable/) - [Bank reconciliation](https://ledgerbpo.com/industries/property-management/bank-reconciliation/) - [Financial reporting](https://ledgerbpo.com/industries/property-management/financial-reporting/) - [All property management services](https://ledgerbpo.com/industries/property-management/) Month-end close in other industries - [Marketing agencies & consultancies](https://ledgerbpo.com/industries/agencies/month-end-close/) - [Auto repair shops & dealerships](https://ledgerbpo.com/industries/auto/month-end-close/) - [Behavioral health practices](https://ledgerbpo.com/industries/behavioral-health/month-end-close/) - [Daycares, schools & education](https://ledgerbpo.com/industries/childcare-education/month-end-close/) - [The full month-end close page](https://ledgerbpo.com/services/month-end-close/) ## 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. Next step ## Books closed. Invoices paid. Every month. Tell us what is going on with your books or billing. You will hear from a named person within 1 business day, with a custom quote and a plan for the first close. - Reply from a named person within 1 business day - No setup fee, month-to-month - Your software, your data, no lock-in Start with a custom quote [Get a custom quote](https://ledgerbpo.com/get-a-quote/) [Book a 20-minute call](https://ledgerbpo.com/book-a-call/) Or call [+1-657-777-0006](tel:+16577770006) during US, UK or Australian business hours. --- Source: https://ledgerbpo.com/industries/property-management/month-end-close/ · Contact: https://ledgerbpo.com/contact/ · Full site map for agents: https://ledgerbpo.com/llms.txt