Bank reconciliation in Buildium compares your property management company's digital records against actual bank statements to catch errors and maintain accurate financial data. Property managers who master bank reconciliation in Buildium can identify missing transactions, duplicate entries, and recording mistakes that could lead to costly financial discrepancies.

The process involves matching transactions, adjusting balances, and resolving differences between your Buildium account and bank statements. Property managers handle multiple properties and numerous transactions daily, making systematic reconciliation essential for maintaining trust with property owners and ensuring compliance with financial regulations.

This guide walks property managers through each step of the reconciliation process, from initial setup to final reporting, while addressing common challenges and security considerations specific to property management accounting workflows.

Key Takeaways

• Bank reconciliation in Buildium helps property managers identify transaction errors and maintain accurate financial records
• The step-by-step process includes setup, transaction matching, and resolving discrepancies between digital records and bank statements
• Regular reconciliation prevents financial mistakes and ensures compliance with property management accounting standards

Setup for Bank Reconciliation in Buildium

Property managers need specific information and proper account setup before starting bank reconciliation. The process requires gathering bank statements, adding accounts to the system, and importing transaction data.

What Information Is Needed for Bank Reconciliation in Buildium?

Property managers must collect several key pieces of information before beginning the reconciliation process. The most critical item is the monthly bank statement from their financial institution.

Essential Information Required:

• Bank statement ending date
• Starting balance from the previous reconciliation
• Ending balance from the current bank statement
• All transactions shown on the bank statement
• Check numbers and amounts

The bank statement serves as the primary document for comparison against Buildium records. Property managers should verify that all deposits, withdrawals, and fees appear on both the bank statement and in Buildium.

Account Details Needed:

• Bank account number
• Account type (checking, savings, money market)
• Bank routing number
• Account nickname for easy identification

Property managers should also gather any outstanding checks or deposits that may not yet appear on the bank statement. This information helps identify timing differences between when transactions were recorded and when they cleared the bank.

How Do You Add Bank Accounts in Buildium?

Adding bank accounts in Buildium requires accessing the banking section and entering specific account information. Property managers can set up multiple accounts for different properties or business needs.

The process starts by going to the Accounting section in Buildium. From there, property managers select Banking and choose the option to add a new account.

Required Account Information:

• Account name or nickname
• Bank name
• Account type
• Starting balance
• Account number (optional for security)

Property managers should use descriptive names for each account. This makes it easier to identify which account belongs to which property or business function.

The system allows for different account types including operating accounts, security deposit accounts, and reserve accounts. Each type serves different purposes in property management accounting.

Account Setup Steps:

1. Navigate to Accounting > Banking
2. Click "Add Account"
3. Enter account details
4. Set starting balance
5. Save the account

Property managers can modify account information later if needed. The system maintains a history of all changes for audit purposes.

How Can Property Managers Import Bank Statements in Buildium?

Buildium offers automatic bank reconciliation features that can import bank statements directly from financial institutions. This reduces manual data entry and speeds up the reconciliation process.

Property managers can connect their bank accounts through Bank Feed functionality in Buildium. This creates a secure connection between the bank and the software.

Import Methods Available:

• Direct bank connection (Bank Feed)
• CSV file upload
• Manual transaction entry
• OFX file import

The Bank Feed option works with most major banks and credit unions. Property managers search for their bank from a list of supported institutions and follow the connection process.

Connection Process:

1. Select "Connect to account" in Banking section
2. Choose your bank from the list
3. Enter online banking credentials
4. Authorize the connection
5. Select accounts to sync

Manual import works when automatic connection is not available. Property managers download transaction files from their bank's website and upload them to Buildium.

The system matches imported transactions with existing entries in Buildium. This helps identify discrepancies and ensures accuracy in the bank reconciliation process.

Step-By-Step Process for Bank Reconciliation

Buildium streamlines bank reconciliation through a structured three-phase approach. Property managers begin by creating a new reconciliation session, proceed through systematic transaction matching, and address any discrepancies that arise during the process.

How Do You Start a New Bank Reconciliation in Buildium?

Property managers access bank reconciliation through the Accounting section in Buildium's main navigation menu. Click on Bank Reconciliation to view all property bank accounts.

Select the specific property and bank account requiring reconciliation. Buildium displays the last reconciliation date and ending balance from the previous session.

Enter the following information:

• Statement ending date from your bank statement
• Ending balance shown on the bank statement
• Any service charges or fees
• Interest earned during the statement period

Click Start Reconciliation to begin the matching process. Buildium automatically loads all unreconciled transactions from the selected date range.

The system displays two columns: your Buildium records and a workspace for marking reconciled items. This step-by-step bank reconciliation process helps property managers maintain accurate financial records across multiple properties.

What Steps Are Involved in Matching Transactions?

Buildium presents unreconciled transactions in chronological order for systematic review. Property managers check each transaction against their bank statement line by line.

Match deposits first:

• Rent payments from tenants
• Security deposit transfers
• Late fee collections
• Other property income

Click the checkbox next to each matching deposit. Buildium automatically updates the running balance as items are marked reconciled.

Next, match withdrawals:

• Vendor payments
• Maintenance expenses
• Property management fees
• Bank charges

For transactions that appear in Buildium but not on the bank statement, leave them unchecked. These represent outstanding checks or deposits in transit.

The reconciliation window shows the Difference field at the bottom. This number must equal zero for successful completion. If transactions don't match exactly, property managers can adjust entries or add missing transactions directly within the reconciliation screen.

How Does Buildium Handle Bank Errors or Discrepancies?

When the difference field shows a non-zero amount, Buildium provides tools to identify and resolve discrepancies. Common issues include timing differences, data entry errors, or missing transactions.

Review these common discrepancy sources:

• Outstanding checks not yet cashed
• Deposits recorded but not yet cleared
• Bank fees not entered in Buildium
• Duplicate transaction entries

For bank errors, property managers can create adjusting entries directly in the reconciliation screen. Click Add Transaction to record missing items like bank fees or interest payments.

If the bank statement shows incorrect amounts, contact the bank immediately. Document the error and create a temporary adjusting entry in Buildium until the bank corrects their records.

Buildium saves reconciliation progress automatically. Property managers can exit and return to complete the process later. Once the difference equals zero, click Finish Reconciliation to complete the process and lock the reconciled transactions.

Common Issues in Buildium Bank Reconciliation

Property managers often face missing bank transactions, duplicate entries, and balance discrepancies that can derail the reconciliation process. These problems typically stem from timing differences, data entry errors, or connectivity issues between Buildium and banking systems.

Why Are Transactions Missing in Buildium?

Missing transactions occur when bank entries don't appear in Buildium's records. This creates gaps that prevent accurate reconciliation.

Timing delays represent the most common cause. Banks process transactions at different speeds than property management systems record them. A rent payment deposited on Friday might not show in Buildium until Monday.

Manual entry errors also create missing transactions. Property managers who forget to record cash payments or bank fees will find these items on bank statements but not in Buildium.

Bank feed connectivity issues can interrupt automatic transaction imports. When automatic bank reconciliation fails, transactions don't transfer from the bank to Buildium.

Property managers should check these areas when transactions go missing:

• Bank feeds - Verify the connection is active
• Manual entries - Review cash transactions and fees
• Date ranges - Confirm transaction dates match statement periods
• Account mapping - Ensure transactions flow to correct accounts

How Can Duplicate Transactions Be Resolved?

Duplicate transactions appear when the same bank entry gets recorded twice in Buildium. This inflates account balances and creates reconciliation problems.

Automatic and manual entry conflicts cause most duplicates. Property managers who manually enter a transaction, then later import bank feeds, often see the same transaction twice.

Bank feed errors can also create duplicates when connectivity issues cause multiple imports of the same data. Some banks send duplicate transaction files during system updates.

Property managers can identify duplicates by looking for:

Duplicate Indicators                        What to Check
‍Same amount and date                    Transaction details and descriptions
Similar payee names                         Vendor or tenant information
Identical reference numbers         Check numbers or transaction IDs

To resolve duplicates, property managers should delete the manually entered version and keep the bank feed import. This maintains the connection between Buildium and bank records.

What Causes Statement Balances to Differ in Buildium?

Balance differences occur when Buildium's ending balance doesn't match the bank statement balance. These discrepancies prevent successful reconciliation completion.

Outstanding checks and deposits create the most common balance differences. Checks written but not yet cashed, or deposits recorded but not yet cleared, will show in Buildium but not on bank statements.

Bank fees and interest often appear on statements without prior entry in Buildium. Monthly service charges, overdraft fees, or interest payments can cause balance mismatches.

Timing differences between transaction recording and bank processing also affect balances. Credit card payments or electronic transfers may process on different dates than expected.

Property managers should verify these balance reconciliation steps:

• Clear outstanding items - Mark transactions that appear on bank statements
• Add missing bank fees - Enter charges that only appear on statements
• Verify dates - Confirm transaction dates match the reconciliation period
• Check previous reconciliations - Review troubleshooting bank reconciliations for unresolved issues

The reconciliation process requires patience when balances don't match immediately. Most differences resolve once all transactions are properly categorized and dated.

Reviewing and Finalizing Reconciliations

Property managers must carefully review reconciliations to catch errors and maintain accurate financial records. The process involves systematic checking of transactions and proper finalization procedures to ensure data integrity.

What Are Best Practices for Reviewing Reconciliations in Buildium?

Property managers should start by checking the beginning and ending balances match their bank statements exactly. Any discrepancies indicate missing or incorrect transactions.

Review each cleared transaction individually. Look for duplicate entries, missing deposits, or incorrectly categorized expenses. Common errors include rent payments posted to the wrong property or maintenance expenses assigned to incorrect accounts.

Check uncleared transactions carefully. These items appear in Buildium but not on the bank statement. Verify outstanding checks haven't been sitting too long, as this may indicate lost or stolen checks.

Compare deposit amounts line by line. Property managers often find errors in rent collections or security deposit handling during this step.

Transaction Review Checklist:

• Beginning balance matches bank statement
• All deposits are properly categorized
• Check amounts match exactly
• No duplicate entries exist
• Uncleared items are legitimate

The bank reconciliation process helps identify typos and missing transactions that could affect financial health reporting.

How Do You Finalize and Save Completed Reconciliations?

Property managers finalize reconciliations by clicking the "Complete" button after all transactions are properly matched and cleared. This locks the reconciliation period and prevents accidental changes.

Before finalizing, verify the reconciled balance equals the bank statement ending balance. If these numbers don't match, investigate and correct any discrepancies first.

Save supporting documentation immediately after completion. Upload bank statements and any correction notes to maintain a complete audit trail.

Buildium automatically updates account balances once reconciliation is finalized. This ensures all financial reports reflect accurate, reconciled data moving forward.

Finalization Steps:

1. Verify all balances match
2. Click "Complete" to lock the period
3. Save bank statements as attachments
4. Document any adjustments made

Property managers should complete reconciliations within 30 days of the statement date to maintain timely financial health monitoring.

Can Property Managers Reopen Past Reconciliations in Buildium?

Property managers can reopen completed reconciliations when errors are discovered after finalization. This feature allows corrections without compromising data integrity.

Access past reconciliations through the Banking section under Accounting. Select the specific reconciliation period that needs modification.

Click "Reopen" to unlock the reconciliation for editing. Make necessary corrections, then re-complete the reconciliation process.

Important considerations when reopening reconciliations:

• Financial reports may change after corrections
• Notify stakeholders of any balance adjustments
• Document reasons for reopening
• Re-verify all subsequent reconciliations

Property managers should modify and undo reconciliations carefully to avoid disrupting financial reporting accuracy. Each change affects the property's financial health tracking and reporting.

Reopening reconciliations requires careful attention to detail. Property managers must ensure all connected transactions remain properly categorized and balanced.

Reporting and Record-Keeping in Buildium

Proper reporting and record-keeping form the backbone of effective property management accounting. Property managers must generate specific reports, maintain clear audit trails, and follow proper retention schedules to ensure compliance and financial accuracy.

What Reports Should Property Managers Generate After Bank Reconciliation?

Property managers should generate several key reports immediately after completing bank reconciliation. The reconciliation summary report shows cleared and uncleared transactions with ending balances.

A transaction detail report provides a complete list of all banking activity for the reconciled period. This report helps identify any missing or duplicate entries in the financial records.

The bank statement comparison report highlights differences between Buildium records and actual bank statements. Property managers use this report to verify all transactions match correctly.

Cash flow reports become more accurate after reconciliation. These reports show actual money movement and help property managers make informed decisions about property finances.

Property managers should also generate general ledger reports to ensure all accounting records reflect the reconciled bank data. The bank reconciliation view state and report now summarize uncleared transactions and tie balances back to Buildium's book balance.

How Does Buildium Help with Audit Trails?

Buildium creates automatic audit trails for all banking and reconciliation activities. The system tracks who performed each reconciliation and when it was completed.

Every transaction entry includes timestamps and user information. This creates a clear chain of accountability for all accounting records and transaction records.

The platform maintains before and after snapshots of reconciliation changes. Property managers can see exactly what adjustments were made during each reconciliation session.

Buildium logs all manual adjustments with detailed explanations. This helps property managers explain any changes to auditors or property owners later.

The system also tracks reconciliation history over multiple periods. Property managers can review past reconciliations to identify patterns or recurring issues in their financial records.

How Long Should Property Managers Keep Bank Reconciliation Records?

Property managers should keep bank reconciliation records for seven years minimum. This timeframe covers most tax audit requirements and legal obligations.

Federal tax regulations require businesses to maintain financial records for at least three years. However, some situations may require longer retention periods.

State regulations often extend record-keeping requirements beyond federal minimums. Property managers should check their specific state requirements for property management businesses.

Digital storage in Buildium makes long-term record keeping easier than paper systems. Property managers can access historical reconciliation data instantly when needed.

Important documents like signed bank statements and reconciliation reports should be backed up regularly. Property managers should maintain both digital and physical copies of critical accounting records for maximum protection.

Security Considerations for Bank Reconciliation

Bank reconciliation security requires multi-layered protection including data encryption, user access controls, and monitoring systems. Property managers must configure proper permissions and enable alerts to prevent unauthorized access to financial records.

How Does Buildium Protect Financial Data?

Buildium uses bank-level encryption to protect financial data during transmission and storage. The platform employs 256-bit SSL encryption when connecting to bank accounts and processing transactions.

All financial data gets stored on secure servers with multiple backup systems. The platform maintains SOC 2 Type II compliance, which means independent auditors verify their security controls annually.

Key Security Features:

• Two-factor authentication for user accounts
• Automatic logout after periods of inactivity
• Role-based access controls for different user types
• Regular security updates and patches

The system also uses read-only connections to bank accounts. This means Buildium can view account information and transactions but cannot move money or make changes to bank accounts.

Property managers can review security logs to see who accessed financial data and when. This creates an audit trail for compliance purposes.

What User Permissions Should Property Managers Set?

Property managers should limit bank reconciliation access to essential staff members only. Create separate user roles for different responsibility levels within the organization.

Recommended Permission Structure:

• Full Access: Property managers and senior accounting staff
• View Only: Junior staff who need to review reports
• No Access: Maintenance staff and other non-financial personnel

Set up approval workflows for bank reconciliation changes. This requires a second person to review and approve reconciliation adjustments before they become final.

Enable the "Require Password for Sensitive Actions" setting. This forces users to re-enter their password before viewing bank account details or making reconciliation changes.

Review user permissions quarterly to ensure former employees lose access and current staff have appropriate permission levels. Remove access immediately when employees leave the company.

Are There Alerts for Unauthorized Bank Account Changes?

Buildium sends email notifications when someone makes changes to bank account settings or reconciliation records. Property managers receive alerts for actions like adding new bank accounts or modifying existing account information.

The system tracks all changes with timestamps and user identification. This includes who made changes, what they changed, and when the changes occurred.

Alert Types Available:

• New bank account additions
• Changes to existing account details
• Large reconciliation adjustments
• Failed login attempts

Set up multiple notification recipients to ensure alerts reach the right people. Include both the property manager and accounting supervisor in alert settings.

Bank reconciliation troubleshooting helps identify suspicious transactions or reconciliation errors. Monitor these alerts daily to catch potential security issues quickly.

Property managers can customize alert thresholds based on their portfolio size and transaction volume. Smaller companies might want alerts for any changes, while larger firms may set dollar amount triggers.

Tips for Efficient Bank Reconciliation in Buildium

Property managers can save significant time by implementing proper reconciliation practices and utilizing available automation features. Regular reconciliation schedules and proper training resources help maintain accurate financial records.

How Can Property Managers Streamline the Bank Reconciliation Process?

Property managers should establish consistent monthly reconciliation schedules to avoid transaction backlogs. Reconciling accounts within 30 days of each statement period prevents errors from accumulating.

Set up automatic bank feeds to import transactions directly into Buildium. This eliminates manual data entry and reduces typing errors that commonly occur during bookkeeping tasks.

Create standardized transaction categories for recurring property expenses. Common categories include:

• Maintenance and repairs
• Property management fees
• Insurance payments
• Utility expenses
• Tenant deposits

Print bank statements before starting each reconciliation session. Having physical copies helps property managers reconcile bank accounts in Buildium for the first time more effectively.

Use batch processing for similar transactions. Group rent payments, maintenance expenses, and vendor payments together to speed up categorization.

What Support Resources Are Available for Buildium Users?

Buildium provides comprehensive help articles that guide users through each reconciliation step. The platform includes detailed instructions for matching ending balances between bank statements and accounting software records.

Video tutorials offer visual demonstrations of the reconciliation process. These resources show exactly which buttons to click and how to resolve common discrepancies.

The Buildium help center covers specific scenarios like:

• Adding missing transactions
• Correcting duplicate entries
• Handling bank fees
• Managing credit card reconciliations

Customer support assists with complex reconciliation issues that standard help articles cannot resolve. Property managers can contact support when facing persistent balance discrepancies.

Community forums connect users with other property managers who share practical tips and solutions. These peer-to-peer resources often provide real-world examples of efficient bank reconciliation strategies.

How Frequently Should Bank Accounts Be Reconciled in Buildium?

Property managers should reconcile bank accounts monthly to maintain accurate financial records. Monthly reconciliation prevents small errors from becoming major discrepancies over time.

Weekly reconciliation works better for high-volume property portfolios with frequent transactions. Properties with multiple units and regular rent collections benefit from more frequent reviews.

Reconcile immediately after receiving bank statements. Waiting longer than 30 days makes it harder to remember transaction details and increases the chance of missing items.

Emergency reconciliation should occur when:

• Bank balances don't match expected amounts
• Tenant payment issues arise
• Property sale transactions need verification
• Tax preparation requires current records

Set calendar reminders for reconciliation deadlines. Consistent timing helps property managers develop efficient routines and ensures no accounts get overlooked during busy periods.

Frequently Asked Questions

Property managers often encounter specific challenges when performing bank reconciliations in Buildium. These common questions address the reconciliation process steps, transaction matching, discrepancy resolution, and timing requirements.

What are the initial steps to begin a bank reconciliation in Buildium?

Property managers should start by printing their bank statement before accessing Buildium's reconciliation feature. The goal is to match the ending balance on the bank statement to the ending balance in Buildium.

Users need to select the appropriate bank account from their Buildium dashboard. They should then enter the statement ending date and ending balance from their bank statement.

The system will display all transactions that need to be reviewed during the reconciliation process.

How do you match transactions between your bank statement and Buildium records?

Property managers review each transaction line by line between their bank statement and Buildium records. They check off transactions that appear on both the bank statement and in Buildium.

Matched transactions should have identical amounts and dates. Any transactions that don't match require further investigation.

The reconciliation process involves comparing deposits, withdrawals, and fees between both records.

What is the process for adjusting discrepancies found during reconciliation in Buildium?

Property managers must identify why discrepancies exist before making adjustments. Common causes include data entry errors, missing transactions, or timing differences.

They can edit transaction amounts or dates directly in Buildium if errors are found. Bank fees or interest that appear on the statement but not in Buildium need to be added as new transactions.

Property managers should verify all changes against supporting documentation before finalizing adjustments.

Can you outline the method for entering unrecorded transactions during the bank reconciliation in Buildium?

Property managers can add missing transactions directly during the reconciliation process. They select the option to create new transactions within the reconciliation window.

Bank fees, interest payments, and automatic withdrawals commonly require manual entry. Each new transaction needs accurate categorization and property assignment.

The system allows users to enter transaction details including date, amount, and description immediately.

What are the best practices for reviewing and finalizing a bank reconciliation in Buildium?

Property managers should verify that all transactions are properly categorized and assigned to the correct properties. They need to confirm that the reconciled balance matches their bank statement exactly.

A thorough review includes checking for duplicate transactions and typos that could affect report accuracy. Property managers should save their work frequently throughout the process.

Final reconciliation approval should only occur after all discrepancies are resolved and balances match perfectly.

How frequently should bank reconciliations be performed in Buildium to ensure accurate financial tracking?

Property managers should perform bank reconciliations monthly as part of their regular accounting cycle. This frequency helps identify issues quickly and maintains accurate financial records.

Monthly reconciliation prevents small errors from accumulating into larger problems. Property managers with high transaction volumes may benefit from more frequent reconciliation.

Consistent monthly reconciliation supports accurate financial reporting and helps property managers maintain better cash flow visibility.

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