Many property managers focus on daily operations but overlook the importance of monthly financial hygiene. A structured month-end close process is critical for maintaining clean books, preparing for audits, and delivering accurate reports to property owners.

If your current approach to month-end feels inconsistent or reactive, it may be time to formalize your process. This article breaks down why the month-end close matters in property management, what to include, and how Yardi Breeze can help.

What Is a Month-End Close?

The month-end close is the process of reviewing, reconciling, and finalizing financial transactions for the previous month. It ensures that all income and expenses are recorded accurately, trust accounts are balanced, and reports reflect the true financial status of each property.

Without a reliable close process, your books may contain errors, omissions, or timing mismatches that affect owner statements, tax preparation, and compliance.

Why the Month-End Close Matters

1. Clean Owner Statements

Owners expect monthly reports that show rent collected, expenses paid, and distributions owed. A proper close ensures these statements are accurate, timely, and easy to understand.

2. Trust Account Accuracy

Trust accounting rules require that client funds are reconciled and tracked separately. A monthly close includes trust account reconciliation and documentation to support compliance.

3. Early Detection of Errors

Closing the books every month allows you to spot discrepancies before they become bigger problems. Missing invoices, duplicate charges, or misapplied payments are easier to correct when caught early.

4. Audit Readiness

If you are ever audited by the Department of Real Estate (DRE) or a CPA, your month-end close records provide a clear audit trail of your accounting activity.

5. Operational Clarity

A strong close process gives you a clear picture of how each property is performing. It helps you identify trends, track delinquencies, and make better financial decisions.

Core Tasks in the Month-End Close

Here are the essential steps that should be part of your property management month-end process:

1. Reconcile All Bank Accounts

Match bank activity to your general ledger and trust ledgers. Every deposit, withdrawal, and transfer must be accounted for.

Yardi Breeze provides a built-in reconciliation tool that simplifies this step.

2. Verify Trust Balances

Ensure that trust bank balances match your liability accounts and client-level ledgers. This is a key DRE requirement.

3. Review Income and Expenses

Make sure all rent is recorded in the correct period. Match vendor payments to the correct property and account codes.

4. Close Accounts Payable

Review the aged payables report, ensure all invoices have been entered, and confirm that payments were authorized and processed correctly.

5. Close Accounts Receivable

Review tenant ledgers and aged receivables. Follow up on delinquencies and make sure charges and receipts are posted.

6. Review and Finalize Owner Statements

Generate owner statements. Double-check for errors, missing entries, or inconsistencies. Include explanations or supporting documentation when needed.

7. Distribute Owner Payments

Once financials are reviewed, process owner draws and disbursements based on available cash and trust account balances.

8. Run Final Reports

Save copies of the balance sheet, income statement, cash flow report, and reconciliation reports. These will serve as your audit trail.

Tips to Improve Your Close Process

Create a Month-End Checklist

Build a reusable checklist of tasks, responsible team members, and deadlines. Use it every month to ensure consistency and accountability.

Use Property Management Software

Yardi Breeze allows you to automate much of the close process: – Scheduled reconciliations – Custom owner statements – Built-in reports for each property – Role-based access and approvals

Document Everything

Retain digital copies of invoices, bank statements, work orders, and receipts. Link them to transactions in your accounting system for easy access.

Set a Closing Calendar

Establish a recurring timeline. For example: – Day 1: Post all rent and bank deposits – Day 3: Finalize payables and vendor payments – Day 5: Reconcile accounts – Day 6: Run owner statements – Day 7: Process owner distributions

Adjust based on your team’s capacity and portfolio size.

Train Your Team

Make sure everyone understands their role in the close process. Provide cross-training to reduce reliance on one person and create internal redundancy.

What Happens Without a Close Process

Skipping or delaying your monthly close creates risk. You may: – Miss errors in bank activity or ledgers – Deliver inaccurate owner statements – Overpay or underpay vendors or owners – Fall out of compliance with trust accounting rules – Struggle to respond to audits or owner questions

A lack of process erodes confidence and can impact your business reputation.

Final Thoughts

Your month-end close is the foundation of clean, compliant, and credible financial reporting. Property managers who close the books on time each month reduce risk, improve cash flow visibility, and provide better service to clients.

With the right tools and a consistent process, the close becomes easier over time. Yardi Breeze provides the automation, structure, and reporting needed to manage month-end without stress.

If your team needs help designing or improving your month-end process, Balanced Asset Solutions provides expert guidance tailored to property managers.