What Is the Adjusted Cash Balance in AppFolio?

The Adjusted Cash Balance (ACB) in AppFolio is the true amount of money that ought to be in your bank account if all recorded transactions are correct. This metric plays a vital role in ensuring your financial records match your actual cash flow, helping property managers like you avoid reconciliation discrepancies and maintain accurate books.

When your Adjusted Cash Balance matches both the cleared and ending balances, you achieve what AppFolio calls a "triple tie-out." This means your reconciliation is accurate and complete. However, if the numbers don’t align, AppFolio flags the issue by highlighting the Adjusted Cash Balance in red within the Reconciliation Summary.

How Is the Adjusted Cash Balance Calculated?

AppFolio calculates the Adjusted Cash Balance using the following formula:

Property Balances (from properties linked to the bank account)

➖ Unreconciled deposits

➖ Unreconciled receipts deposited after the reconciliation period

➖ Receipts reversed after reconciliation that haven't been deposited

➖ Pending online receipts that haven't been deposited

➕ Unreconciled checks

➕ Unreconciled eCheck or ACH batches and reversals

➕ Unreconciled eCheck or ACH batches generated after the reconciliation period

➕ Uncleared checks voided after the reconciliation period

Understanding this formula is key to identifying discrepancies in your bank reconciliation process and ensuring that your financial records reflect reality.

How to Find the Adjusted Cash Balance in AppFolio

If you're struggling to locate the Adjusted Cash Balance in AppFolio, follow these steps:

1. Navigate to the Bank Reconciliation Page

Go to Accounting > Bank Reconciliations in your AppFolio dashboard.

Select the bank account you want to review.

2. Check the Reconciliation Summary

Scroll down to the Reconciliation Summary section.

If your Adjusted Cash Balance is in red, this means there is a discrepancy that needs to be addressed.

3. Click "View Details"

AppFolio provides a detailed breakdown of how your Adjusted Cash Balance is calculated.

Look for any transactions that may be causing discrepancies.

Resolve Any Issues

Identify missing, duplicate, or incorrectly recorded transactions.

Ensure all deposits, checks, and reversals are properly accounted for.

Make necessary corrections and reattempt reconciliation.

Why is the Adjusted Cash Balance important?

Property managers often face reconciliation challenges due to the complexity of financial transactions. Here’s why the Adjusted Cash Balance is essential:

✅ Prevents bank reconciliation errors – Helps you identify and fix discrepancies before they cause larger issues.

✅ Ensures compliance – Accurate records ensure compliance with financial reporting requirements.

✅ Avoids tenant and owner disputes – Mismanaged funds can lead to unnecessary conflicts.

✅ Saves time – A properly reconciled account prevents last-minute firefighting during audits or tax season.

Final Thoughts

The Adjusted Cash Balance in AppFolio is a powerful metric that keeps your financial records in check. By understanding how it’s calculated and where to find it, you can streamline your reconciliation process, minimize errors, and keep your property management finances in top shape.

​