One of the most important procedures for keeping correct financial records in Appfolio is bank reconciliation. Completing this task will guarantee accurate and dependable financial data for property managers. We will lead you through the process of balancing your bank account in AppFolio and share some troubleshooting tips in this guide.

Before we jump into the steps, we would like to answer a very essential question: Why bank reconciliation is necessary?

Reconciling your bank account involves matching the transactions in your bank statement to those recorded in AppFolio. This process helps:

• Ensure your AppFolio cash balances are accurate.
• Prevent overdrafts.
• Detect and address fraudulent activity early.

Preparation for Reconciliation

Before you get started:

1. Enter All Transactions: Ensure all deposits and payments for the statement period are entered in AppFolio.

2. Gather Bank Statements: Have your bank statement handy, showing the ending balance and the statement period.

How to perform a triple tie-out bank reconciliation in Appfolio in 10 easy steps:

1. Initiate the Reconciliation

Begin by navigating to the “Accounting” section in the left panel of your AppFolio dashboard. Select “Bank Accounts,” and on the right-hand side of the screen, click the “Reconcile” option. This will start the reconciliation process for the selected account.

2. Choose the Correct Account

From the “Account to reconcile” dropdown menu, select the bank account you are reconciling. It’s essential to ensure that you are working with the correct account to avoid discrepancies.

3. Input the Ending Balance

Enter the ending balance provided by your bank statement into the “Ending Balance” field. This balance should match the amount shown on your bank statement for the reconciliation period.

4. Verify Deposits and Payments

On your reconciliation screen, review all listed transactions from your bank statement. If AppFolio indicates there are undeposited receipts with an “Adjusted Cash Balance” alert, make sure all receipts have been properly deposited into the system.

5. Leverage the Search Function

Utilize the search bars above the “Deposits and Other Credits” and “Checks and Other Payments” sections to swiftly locate and verify transactions. This can save time and help ensure you’re not overlooking any details.

6. Confirm Your Transactions

After marking all deposits and payments, compare your totals against the amounts shown on your bank statement. Review any outstanding transactions to understand why they might not have been reconciled yet.

7. Check Uncleared Transactions

Examine all pending transactions in each reconciliation category. Understanding why these transactions remain uncleared will help you address any issues or discrepancies effectively.

8. Strive for the Triple-Tie-Out

Your objective is to achieve a perfect match between the ending balance, cleared balance, and adjusted cash balance. This triple-tie-out ensures that your financial records are accurate and consistent.

9. Balance Your Accounts

If you find that your Adjusted Cash Balance does not start off “In Balance,” address this issue before continuing with the reconciliation. Correct any discrepancies to ensure accurate financial reporting.

10. Finalize Your Reconciliation

Review all your entries carefully. Once you are confident that everything is accurate, click the blue “Reconcile” button to complete the reconciliation process.

Troubleshooting Common Issues

Even with a straightforward process, issues can arise during reconciliation. Here are some tips to troubleshoot common problems:

Discrepancies in Ending Balances: Double-check the ending balance entered and compare it with the bank statement. Make sure no transactions have been omitted or incorrectly entered.

Uncleared Transactions: Investigate why certain transactions are not clearing. They might need to be manually matched or corrected.

Adjustments Not Reflecting: If adjustments or deposits are not showing up correctly, verify that all entries are correctly recorded in AppFolio and that no data has been missed.

Cleared Balance Mismatch: If the cleared balance does not align with the bank statement, ensure that all transactions have been accurately marked as cleared or uncleared.

By following these steps and addressing common reconciliation issues, you can ensure a smooth and accurate bank reconciliation process in AppFolio. This not only helps maintain precise financial records but also provides peace of mind that your property management finances are in excellent shape.

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