Key Takeaways

• Messy AppFolio books are a systems problem, not a single mistake. Inconsistent workflows, partial reconciliations, and ad-hoc fixes compound quietly over time. Cleaning the GL without fixing the process that feeds it guarantees the mess will return.
• A successful cleanup follows a sequence — not a checklist. Stop the bleeding first, fix the foundation second, and only then add automation and controls. Skipping steps (especially full reconciliations and workflow standardization) increases risk and rework.
• “Clean” must be defined in advance or the cleanup never ends. Reconciled banks, explainable balance sheet accounts, accurate owner/vendor data, and a repeatable month-end close are the finish line — not “it looks better than before.”
• The real ROI comes after the cleanup. Controls, permissions, and a simple stability scorecard are what prevent relapse. Without them, you’ll pay for the same cleanup again within 90 days.

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If your AppFolio financials feel “off,” you’re not alone. Most messy books aren’t caused by one bad month — they’re caused by small issues that compound over time:

inconsistent coding, partial reconciliations, ad-hoc journal entries, incomplete vendor/tenant records, and workaround-heavy workflows that slowly break the link between the bank and the ledger.

This post isn’t a generic “clean up your books” explainer. It’s a project plan: what to fix first, how to sequence it, what to deliver by each milestone, and how to prevent “clean today, broken again in 90 days.”

If you need the step-by-step “what we actually fix” walkthrough, link internally to your existing “Fix Messy AppFolio Books” post early. This guide by Balanced Asset Solutions is the management plan for running the cleanup like a project.

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Before You Start: Define What “Clean” Means (So You Know When You’re Done)

A cleanup is complete when you can confidently answer “yes” to these:

• The bank is reconciled (every account, every month, no mystery uncleared items).
• Balance sheet ties out (security deposits, A/R, A/P, prepaid items, clearing accounts are explainable).
• Owners and vendors are accurate (vendor setup supports payments and reporting; owner statements don’t require manual patching).
• Month-end close is repeatable (a checklist + calendar + consistent reports, run the same way every month).
• Controls are in place (permissions, approvals, and a light audit trail review cadence).

If you don’t define “clean,” a cleanup becomes endless busywork — and teams default back to shortcuts.

The Big Idea: Stop the Bleeding → Fix the Foundation → Keep It Clean

The safest sequence is:

1. Days 1–30: Stop the bleeding + get visibility (diagnostic + triage)
2. Days 31–60: Fix structure + reconcile fully (foundation cleanup)
3. Days 61–90: Keep it clean (controls + automation + close cadence)

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Days 1–30: Stop the Bleeding + Get Visibility

Goal: identify what’s broken, stop creating new mess, and establish a baseline you can measure against.

1) Freeze the “Mess Makers” (Temporarily)

In the first 30 days, the fastest win is reducing new damage. That usually means:

• Pause ad-hoc journal entries unless there’s documentation and approval.
• Route refunds/credits/chargebacks through one owner temporarily.
• Standardize coding rules (even a simple “Top 20 most common transactions” guide helps).

This isn’t about being rigid — it’s about preventing a moving target while you fix the foundation.

2) Run a Diagnostic Review (What’s Wrong, Where, and Why)

A cleanup starts with structured diagnosis, not random report pulling.

Deliverable by Day 30: a one-page Findings & Fix Plan that includes:

• Top issues ranked by risk (not just annoyance)
• Which accounts/processes are impacted
• The fix type: configuration change vs rebuild vs training/SOP vs “we need to re-implement this workflow”
• Who owns each fix (accounting, AP, ops, leadership)

3) Choose a “Minimum Viable Close” Checklist

You don’t need a perfect close right away — you need a repeatable close.

Start with:

• Bank rec complete
• A/R and A/P reviewed
• Security deposits tie-out (or documented exception)
• Preliminary income statement variance scan
• Owner statement sanity check

4) Identify High-Risk Accounts That Create Audit Pain

In property management accounting, the usual suspects are:

• Security deposit liabilities
• Trust/escrow accounts (if applicable)
• Owner payables / due-to / due-from
• Undeposited funds and clearing accounts
• Suspense accounts that never clear

Day-30 win: name them, assign ownership, and decide your tie-out method.

Common Cleanup Pitfalls (and How to Avoid Them)

Pitfall 1: “We’ll reconcile later” becomes “we never reconciled”

What it looks like: Recs get “mostly” done, uncleared items pile up, and no one trusts the balance sheet.
Avoid it: set a hard rule during cleanup — no month progresses until every bank account is fully reconciled for the prior month (or you document a specific exception and date to resolve it).

Pitfall 2: Cleaning the GL without fixing workflow

What it looks like: You clean codes, but deposits, AP, move-ins, and credits are still processed differently by different people — so the same errors come back.
Avoid it: pair each GL fix with an SOP update: “When X happens, post it this way.”

Pitfall 3: Too many people can “just fix it”

What it looks like: Manual adjustments become the default, which hides process issues and kills accountability.
Avoid it: tighten permissions temporarily during cleanup, then implement a permanent “who can post what and why” policy.

Pitfall 4: Ignoring property-level outliers

What it looks like: the portfolio looks fine, but a few properties are quietly producing most of the noise.
Avoid it: add a property outlier check every close (see the Stability Scorecard module below).

Pitfall 5: Reclassification chaos

What it looks like: you’re reclassing the same categories every month.
Avoid it: track the “Top 10 recurring mis-codes,” train to them, and adjust your workflows so the right coding happens upstream.

Days 31–60: Fix Structure + Reconcile Fully

Goal: correct foundational setup and bring the books into alignment. This is where the real cleanup work happens.

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5) Clean Up Chart of Accounts Structure (Without Breaking Reporting)

A lot of “messy AppFolio” starts with:

• Duplicate GL codes created “just in case”
• Inconsistent naming conventions
• Incorrect natural balances
• Revenue/expense categories that don’t match how leadership wants to analyze results

Rule of thumb: if two GL codes exist because “we didn’t know which one to use,” you will never get consistent reporting until you consolidate and document.

Day-60 target: a chart of accounts that’s:

• Standardized in naming
• Documented (what each account is for)
• Lean enough that team members can code consistently

6) Reconcile Every Bank Account to Completion (No Partial Months)

This is non-negotiable. A cleanup that ends with “we’re close” on bank recs isn’t a cleanup.

Day-60 target benchmarks:

• No uncleared checks older than 90 days without documented reason
• No uncleared deposits older than 30 days without documented reason
• Every adjustment tied to a real statement item, not a guess

7) Stabilize Tenant + Vendor Data (So Transactions Post Correctly)

A cleanup isn’t only the GL — it’s the records feeding the GL.

Focus on:

• Lease dates and deposit handling accuracy
• Correct security deposit posting logic
• Vendor setup completeness (payment method, tax classification where relevant, duplicate prevention)
• Standardized naming (so reporting and 1099 workflows don’t break)

8) Establish “One Way to Do It” for Recurring Processes

Pick a handful of recurring processes and lock them down:

• Management fee posting method
• Late fee rules
• Owner contributions/withdrawals handling
• NSF/returned payment handling
• Write-off policy (who approves, where documented)

During days 31–60, your goal is repeatability, not cleverness.

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Expansion Module: 30/60/90 Deliverables (What You Should Have in Hand)

By Day 30, you should have:

• A list of high-risk accounts (security deposits, trust/escrow, clearing, suspense)
• A ranked cleanup backlog (impact + effort)
• A “minimum viable close” checklist
• A standard coding guide for common transactions

By Day 60, you should have:

• All bank accounts reconciled through the same cutoff month
• Chart of accounts cleaned and standardized
• Tenant/vendor master data stabilized (duplicates reduced; required fields complete)

A documented workflow for deposits, move-ins, management fees, credits/write-offs

By Day 90, you should have:

• A repeatable close calendar (with owners assigned)
• Permissions + approvals + lightweight audit review cadence
• A one-page stability scorecard (below)
• A plan for quarterly system health checks

Days 61–90: Keep It Clean (So You Don’t Pay for Cleanup Twice)

Goal: prevent relapse by building guardrails: controls, cadence, and targeted automation.

9) Add Workflow Automation Where It Reduces Human Error

Automation works best after you’ve stabilized the foundation.

Good automation targets:

• Standardized reminders for close tasks
• Approval routing for bills/credits/write-offs
• Consistent fee/charge rules and recurring entries
• Integration checks (if you use connected tools)

A key principle: automate the steps that create repeatable errors, not the steps that need judgment.

10) Put Internal Controls in Place (Permissions + Approvals + Audit Trail Review)

Clean books without controls is just a temporary makeover.

At minimum:

• Separate bill entry vs approval vs payment release (as best as your team size allows)
• Restrict who can edit closed periods
• Implement approval thresholds for credits/write-offs
• Schedule a quick monthly audit review (15 minutes is enough to catch patterns)

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11) Build a 90-Day Close Calendar (And Stick to It)

A realistic close cadence might be:

• Day 1–3: bank feeds + preliminary rec
• Day 4–5: A/R + deposits + A/P review
• Day 6–7: variance review + owner statement QA
• Day 8: publish/report

Whatever cadence you pick, document it — and measure compliance.

12) Create a One-Page Scorecard That Proves the System Is Stable

If you can’t measure stability, you can’t maintain it.

Track a short list of signals (see below). This is one of the highest ROI pieces of a cleanup because it prevents backsliding.

Expansion Module: Sample Month-End Close Checklist (Property Management Focus)

Week 1: Cash + core ledgers

• Import bank activity / verify bank feeds (if used)
• Reconcile all operating accounts
• Reconcile trust/escrow accounts (if applicable)
• Clear clearing accounts (undeposited funds, suspense, etc.)
• Confirm no bank rec differences remain unexplained

Week 1–2: Receivables + deposits + payables

• Review A/R aging (tenant + owner, if applicable)
• Verify security deposit liability tie-out
• Review prepaid rent / deferred revenue logic (if used)
• Review A/P aging and unmatched bills
• Confirm vendor setup supports accurate reporting

Week 2: Statement readiness

• Run income statement variance review (portfolio + property outliers)
• Review top expense categories for mis-codes
• Confirm management fees posted correctly and consistently
• Spot-check owner statements (3–5 properties across managers)
• Lock the period (or document rules for after-close adjustments)

End: Publish + learn

• Document “close issues” and fixes (what broke, why, how to prevent it)
• Update SOPs for recurring problems
• Post-close KPI review (see scorecard)

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The “Stability Scorecard” (One Page That Proves You’re Clean)

Track these monthly (portfolio-wide plus your worst 5 properties):

Reconciliation health

• of uncleared checks > 90 days
• of uncleared deposits > 30 days
• of accounts not reconciled by close deadline

Manual adjustment signals

• of manual journal entries posted (and total $)
• of reclasses after the close date
• of “misc/suspense” transactions

Owner statement quality

• of statement corrections requested
• of manual edits needed to publish statements

Close timeliness

• Days to close (trend should improve over 90 days)

Simple rule: If any metric trends the wrong way for two consecutive months, run a mini-audit before the problem compounds.

Responsibility Matrix (Who Owns What)

This is how you prevent “everyone thought someone else handled it.”

Accounting team

• Bank reconciliations
• GL structure and mapping rules
• Month-end close checklist ownership
• Journal entry control + period lock rules

Property managers / ops

• Correct coding at the source (work orders, invoices, categories)
• Move-in fee accuracy (so accounting isn’t repairing it later)
• Communication of unusual events (claims, concessions, major repairs)

AP specialist

• Vendor setup hygiene (duplicates, payment terms, correct payee)
• Bill coding standards enforcement
• Documentation of exceptions (why something was coded unusually)

Leadership / controller

• Approval policy (who can approve what)
• Permission structure oversight
• Close deadline enforcement
• Quarterly health checks

During the first 90 days: name one “cleanup owner” who runs weekly check-ins and owns the backlog.

Fast Wins vs Deep Fixes (What to Prioritize)

Fast wins (often < 2 weeks)

• Remove duplicates in vendor lists / standardize naming
• Close checklist + calendar
• Standard coding guide for top transaction types
• Approval thresholds (credits/write-offs)
• Remove unused or overpowered user access

Deep fixes (often 30–90 days)

• Historical reconciliation gaps
• Chart of accounts consolidation + retraining
• Rebuilding broken workflows (deposits, management fees, move-ins)
• Conversion/migration cleanup (if issues originate from implementation)
• Portfolio-wide SOP adoption

This helps leadership understand why a cleanup plan is structured — and why skipping steps costs more later.

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Discovery Questions (Qualify Whether You Need AppFolio Consulting)

If you answer “yes” to any of these, you’re a strong candidate for a structured cleanup plan:

• Do you have bank accounts that haven’t been fully reconciled in 60+ days?
• Do owner statements require manual edits each month?
• Do different team members code the same expense type differently?
• Are clearing/suspense accounts carrying balances month over month?
• Do you rely on one person who “knows the workaround” to keep reports usable?

When You Should Bring in AppFolio Consulting

If any of the following are true, you’ll typically see ROI from expert AppFolio consulting:

• You’re reconciling “in spreadsheets” because AppFolio doesn’t match the bank
• Your team relies on workarounds that only one person understands
• Owners are questioning statements or requesting frequent revisions
• You’re heading into audit/tax season and don’t trust the numbers
• You’ve had staff turnover and the process isn’t documented

Bottom Line

Messy AppFolio books don’t fix themselves, and one-time cleanups don’t last without structure. The goal isn’t perfection — it’s trustworthy numbers, a repeatable close, and systems that don’t rely on workarounds or tribal knowledge.

Balanced Asset Solutions helps teams run AppFolio cleanups like projects, not guesswork: clear diagnostics, sequenced fixes, and controls that prevent backsliding.

If your books feel “mostly right” but hard to trust — or month-end depends on heroics — it’s time for a different approach. Contact Balanced Asset Solutions to see if a structured AppFolio cleanup is the right next step.

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