Bank Reconciliation Services
Reconciliation That Resolves the Variance Instead of Reporting It
Every operating, trust, and escrow account reconciled on a fixed schedule by a team that treats an unexplained difference as work to be done, not a line item to carry forward.
Three-way reconciliation on trust accounts, catch-up on accounts that have fallen behind, and a monthly close you can actually close.
Reconciliation worklist
Operating & Trust · Month End
- Deposits in transit3 matched
- Unposted bank fees6 posted
- Misapplied receipts2 corrected
- Trust to operating transfers1 traced
- Stale outstanding checks4 flagged
A Reconciliation Report Is Not a Reconciliation
The Difference Is Whether Anyone Chased the Difference
Most software will produce a reconciliation report on demand. It will list the items that do not match and it will let you finish anyway. Done that way every month, the report becomes a record that a problem exists rather than a process that removes one, and the gap grows in the background until something forces it into the open.
Carried forward
- Variance noted, marked as under review, rolled into next month
- Reconciled in total, never checked at the ledger level
- Bank fees posted as a lump adjusting entry
- Aged outstanding checks left to sit indefinitely
- The person who understood the account has left
Resolved
- Every variance traced to the transaction that caused it
- Trust accounts tied out three ways, including beneficiary ledgers
- Fees, NSFs, and chargebacks posted individually with a source
- Stale items surfaced with a written recommendation
- A documented process that survives a staffing change
What We Are Actually Looking For
The Six Variances Behind Most Broken Reconciliations
- Deposits in transit that never landed
- A receipt posted in your software that the bank never received. Usually a batch that failed, occasionally a deposit taken to the wrong account.
- Payments applied to the wrong ledger
- The cash is correct at the bank and wrong at the tenant. The account still balances in total, so only a ledger-level check finds it.
- Bank fees and returned items nobody posted
- NSF reversals, wire fees, and chargebacks that hit the statement and never made it into the books, quietly shifting the balance every month.
- Transfers that crossed accounts
- Money moved between trust and operating without a matching entry on both sides. On a trust account this is the variance that matters most.
- Duplicate postings
- The same invoice or receipt entered twice, often during a busy month-end or a staffing handover.
- Stale outstanding checks
- Checks written months ago that never cleared, inflating the book balance and hiding a real cash position.
A Cadence You Can Plan Around
Fixed Dates, Not Best Efforts
Reconciliation slips when it is the last task on a long list. We run it as a scheduled commitment, so owner reporting and distributions land on the same dates every month.
- 1Through the month
Receipts, payables, and transfers reviewed as they post, so exceptions surface while the supporting detail is still fresh and someone still remembers the deposit.
- 2At close
Every account reconciled to the bank, trust accounts tied out three ways, variances traced and cleared, unresolved items escalated with a recommendation.
- 3After close
Reconciliation reports, supporting statements, and ledger detail filed together, so a records request or an examination is a retrieval rather than a rebuild.
Frequently Asked Questions
What is a three-way reconciliation?
A three-way reconciliation proves that three numbers agree: the bank statement balance, the book balance in your property management software, and the total of every individual owner and tenant ledger. A standard bank reconciliation only compares the first two. The third leg is what proves the account holds the right money for the right people, and it is the leg state regulators care about on a trust account.
How often should property management bank accounts be reconciled?
Trust and escrow accounts should be reconciled monthly at minimum, and many states require it. Operating accounts benefit from the same cadence. High-volume portfolios often move to a more frequent review, not because the rules demand it, but because catching a misapplied deposit in week one takes minutes and catching it in month four takes a morning.
What is an escrow reconciliation?
It is the same discipline applied to funds held in escrow, most often security deposits and, in commercial portfolios, tax and insurance reserves. The account has to tie to the bank and to the individual balances owed to each tenant or borrower, so that when a lease ends or a reserve is drawn, the amount owed can be evidenced rather than estimated.
Do you reconcile accounts that are months or years behind?
Yes. Catch-up reconciliation is a distinct engagement from ongoing monthly work. We start with a diagnostic to find the last period that genuinely tied out, then work forward, correcting rather than plugging. You receive a written record of what was wrong in each period and what changed.
What happens when a variance cannot be resolved?
We do not carry it forward silently, which is how small differences become permanent ones. Unresolved items are escalated to you with the transactions we believe caused them and a recommendation. Some variances genuinely require a decision only the owner or broker can make, such as writing off an aged unidentified receipt, and those get made deliberately rather than by default.
Which accounts and software do you cover?
Operating, trust, escrow, security deposit, and reserve accounts, reconciled inside AppFolio, Yardi, Buildium, Rent Manager, Entrata, RealPage, MRI, or QuickBooks. We work with accountant access to your instance so the reconciliation lives with your ledgers rather than in a spreadsheet on someone's desktop.
Where This Fits
Reconciliation is the proof step. It sits directly downstream of the payables and receivables that move the money, and directly upstream of the trust compliance it evidences.
Experts In All Property Types
Residential, commercial and everything in between. The asset class changes what the books have to prove, and our teams are staffed accordingly.
- Single-Family
- Multifamily
- Student Housing
- Affordable Housing
- Community AssociationsSee the page
- CommercialSee the page
Check Out What Our Clients Have To Say About Us
Property Managers, Investors & Owner Operators
Came from a bookkeeper who did not know real estate
Following a series of erroneous financials from my previous bookkeeper, who lacked expertise in real estate, it's been truly remarkable to receive not only accurate financials on a consistent basis but also proactive advice without prompting. The REA team is a game-changer in real estate accounting!
Real-estate-only specialists
As REA exclusively specializes in Real Estate, I rest easy knowing my financials are precise every month while saving money at the same time, an invaluable benefit.
Handed over the whole accounting function
I highly recommend Real Estate Accounting (REA) services from this group. They truly are great and have helped us tremendously at a time we needed it the most. I felt very comfortable giving up all my accounting responsibilities to this team and I'm still glad I made the decision to work with this group. Nothing less than an amazing experience!
Day-to-day financial operations
REA and team have been nothing but excellent helping our firm with its day to day financial needs. Their expertise, professionalism, and timeliness have made our lives so much easier. We foresee a long relationship with REA and team.
Onboarding and responsiveness
Real Estate Accounting truly is a special company. They helped as if they were a part of our company, with the concern and caution as an employee would have, but even more. They quickly ascertained our needs and developed an effective team to help with our accounting needs. They were extremely responsive and always accurate. I would recommend their services to anyone who needs help with their property management accounting.
Smaller portfolio, still looked after
Adam the owner took a personal interest in my situation and was willing to work with me to see if his company was a good fit. I may be too small for them but I would highly recommend them to anyone considering a bookkeeper for their property management business.
230+
Property Accountants
30M+
Commercial Sq. Ft.
Up to 50%
Saved vs In-House
Every month
On-Time Close
Get Every Account Tied Out This Month
Schedule a call and we will review how your accounts are reconciled today, including how far back the last clean tie-out actually goes, and scope what it takes to keep every account current.