The Property Manager’s Year-End Countdown: How to Avoid Awkward Year-End Owner Conversations
How to Avoid Awkward Year-End Owner Conversations
At year-end, you might notice a few owners who left earlier this year still have open or negative balances. Those small amounts you planned to “circle back to” can quietly build into unrecoverable losses if left unresolved.
Clearing these balances before year-end ensures accurate trust accounting, cleaner books, and a smoother start to the new year — without the awkward follow-up emails.
Why It Matters
Unresolved owner balances can distort trust reconciliations, delay payouts, and complicate year-end reporting. By reviewing these items now, you’ll prevent confusion and maintain strong relationships with your owners.
Your Week 6 Action Plan
This week, dedicate 1–3 hours to reviewing and clearing all open owner balances before closing the year.
Step 1: Run a Property Trial Balance Report (15 minutes)
Export your current Owner Balances or Owner Statement Summary from your PMS.
Review for units with negative or unusually high balances.
Identify any open Advance, Reimbursement, or Adjustment transactions that remain uncleared.
Flag anything that doesn’t look right — you know your owners best.
Step 2: Verify Outstanding Advances and Reimbursements (15–30 minutes)
Confirm all owner reimbursements have been properly posted and paid out.
Ensure vendor advances have been matched with corresponding income or expense entries.
Double-check that reimbursements aren’t stuck in Accounts Receivable or holding accounts.
Review uncleared owner payouts in your bank reconciliation and verify each is valid.
Step 3: Review Adjustments and Credits (15 minutes)
Check for placeholder journal entries, pending chargebacks, or manual adjustments not finalized.
Confirm internal transfers or corrections were completed in both your PMS and QuickBooks.
Step 4: Investigate Long-Standing Balances (30–45 minutes)
Identify owners whose balances haven’t changed in 60 days or more.
Determine if the issue is timing-related, an error, or a true balance due.
Flag items that require communication or documentation.
Step 5: Clear or Document (20 minutes)
Post final entries and resolve any balances you can now.
For unresolved items, document the issue, owner name, and next steps.
Create a shared tracking list (Asana, ClickUp, or similar) to ensure follow-up is completed before year-end.
Step 6: Communicate with Owners (15–30 minutes)
When clarification is needed, send a short, proactive message:
“During our year-end review, we noticed a balance remaining on your account for [description]. We’re verifying all owner activity to ensure complete accuracy heading into 2026. Can you confirm [detail]?”
Keep your tone professional and solution-focused — this is about accuracy, not fault.
Pro Tip
While you’re already reaching out to owners, ask them to verify their contact details and W9 information. It saves time and prevents delays when filing 1099s.
The Payoff
Reviewing owner balances now prevents surprises, maintains trust, and ensures your financials are accurate heading into the new year. By taking time to clean up old balances, you’ll build confidence with owners and start 2026 with clear books and stronger relationships.