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Bank reconciliation is a critical process for property managers using AppFolio software to maintain accurate financial records. With AppFolio’s powerful features, including the triple tie-out functionality, you can ensure that your bank account balances align with the transactions recorded in the system. In this comprehensive guide, we will walk you through the steps of performing a bank reconciliation with triple tie-out in AppFolio, enabling you to maintain financial accuracy and streamline your property management operations.

Understanding Triple Tie-Out:

AppFolio’s triple tie-out feature allows you to reconcile bank accounts by matching three critical components:

1. Bank Statement: The bank statement provides a record of all transactions processed by your bank during a specific period.
2. AppFolio Ledger: The AppFolio ledger contains all recorded transactions in the system, including payments, deposits, and other financial activities.
3. Cleared Items: Cleared items represent transactions in AppFolio that have been confirmed as cleared by your bank.

By ensuring these three components align, you can achieve a comprehensive reconciliation process that safeguards the integrity of your financial data.

Step-by-Step Guide to Bank Reconciliation with Triple Tie-Out in AppFolio:

Step 1: Gather Bank Statement and AppFolio Reports

1. Obtain your bank statement for the reconciliation period.

Generate the necessary reports in AppFolio:

a. Go to the Reports section and select “Banking Reports.”
b. Generate the “Cleared Transaction Report” for the reconciliation period.
c. Generate the “Uncleared Deposits and Payments Report” for the reconciliation period.

Step 2: Compare Bank Statement and AppFolio Ledger Balances

1. Compare the ending balance on your bank statement with the ending balance in AppFolio’s ledger.
   • If the balances match, proceed to Step 3.
   • If the balances don’t match, identify any discrepancies and investigate further before continuing.

Step 3: Review Cleared Items in AppFolio

1. Review the “Cleared Transaction Report” from AppFolio.
2. Compare each cleared transaction in AppFolio with the corresponding entries on your bank statement.
3. Mark each cleared transaction as “Verified” or “Cleared” in AppFolio, indicating that it matches the bank statement.

Step 4: Compare Uncleared Deposits and Payments

1. Review the “Uncleared Deposits and Payments Report” from AppFolio.
2. Cross-reference each uncleared deposit and payment with your bank statement.
3. Mark each uncleared deposit and payment as “Outstanding” or “Needs Verification” in AppFolio.

Step 5: Address Discrepancies and Outstanding Items

1. Investigate any discrepancies or outstanding items identified during the comparison.
2. Verify that all transactions have been correctly recorded and cleared in AppFolio.
3. Resolve any discrepancies by adjusting entries, contacting your bank, or correcting data in AppFolio.

Step 6: Finalize Reconciliation and Run Triple Tie-Out Report

1. Once all discrepancies and outstanding items are resolved, finalize the reconciliation process.
2. Run the Triple Tie-Out Report in AppFolio to ensure that the bank statement, AppFolio ledger, and cleared items align.
3. Review the report for any discrepancies, ensuring that the triple tie-out is achieved.

Step 7: Document and Retain Reconciliation Records

1. Document the details of your bank reconciliation process, including the reports used, adjustments made, and any pertinent notes.
2. Retain all records and supporting documents for future reference and audit purposes.