We begin by ensuring that all preliminary tasks are completed before closing. This includes verifying that all transactions for the month are recorded correctly, reviewing outstanding items, and making any necessary adjustments.
We automate and post recurring journal entries, ensuring consistency and accuracy across periods. This includes entries like depreciation, amortization, and prepaids for expenses and revenues.
Proper expense and revenue recognition are key to accurate financial reporting. We review and post accruals for expenses that have been incurred but not yet recorded and revenues that have been earned but not yet invoiced. These include utility expenses, insurance, property management fees, and any other vendor or tenant-related accruals.
Misclassified transactions are corrected to ensure that the financial statements accurately reflect the nature of all expenses and revenues. We carefully reclassify capital expenditures vs. operating expenses, tenant improvements, and repairs and maintenance.
Reconciling bank accounts is essential to identify discrepancies and maintain control over cash flow. Our team reviews all bank statements, reconciles each account, and resolves any outstanding or unusual items.
We ensure that all vendor invoices, payments, and credits have been accurately processed and recorded within the accounting system. We also thoroughly review the aging report to ensure timely payments and proper cash flow management.
We review all tenant rent rolls, late fees, and miscellaneous charges, ensuring that rent is accurately billed and payments are received. Our team also reviews the AR aging report to monitor overdue balances and prepare for collections if necessary.
After all entries, accruals, and reclasses are completed, we prepare the financial statements: Income Statement (Profit & Loss), Balance Sheet, and Cash Flow Statement. Our team reviews these statements for accuracy, consistency, and completeness, identifying any discrepancies or irregularities for correction.
We perform a detailed analysis to compare the current month's performance against the budget, prior periods, and forecast expectations. This allows us to identify any significant fluctuations or outliers that require attention.
Any final adjustments are made, and financial reports are generated. These reports are reviewed and shared with the property managers or investors for their review and approval.
Once all financial data is reviewed and reconciled, we officially close the books for the month, locking the period to prevent further adjustments.
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