For Licensees and Officers in Effective Control, your Trust Account is one of the most critical areas of responsibility in your business. It is also one of the most closely scrutinised by regulators and auditors. A structured monthly review within your trust accounting software is essential — not only for compliance, but to ensure your agency is actually recovering the fees it has earned.

Here are key areas you should review every month:

  1. End of month Reconciliation

    End-of-month trust reports should be signed by the Licensee. As part of this sign-off, confirm the bank closing balance on the reconciliation report matches the closing balance on the bank statement. Any unreconciled items or adjustments should be investigated immediately, particularly those older than 30 days. Small discrepancies can quickly become significant compliance risks if ignored.

  2. Fees Owed to Your Agency

    Many agencies unknowingly miss charging fees they are entitled to. Run reports to identify:

    – Properties with no fees attached
    – Fee setups that are manual rather than trigger-based
    – Reimbursable expenses that have not been recovered
    – Forecasted income compared to actual income

    These checks help ensure your fee structures are correctly applied and consistently collected.

  3. Audit Log Review

    Your software’s activity log is a powerful oversight tool. A quick monthly scan for keywords such as delete or cancel can highlight fees or bills that were removed and may need review. This strengthens internal controls and protects your license.

  4. Held or Suspense Funds

    Funds sitting in holding, suspense, or clearing accounts should always have a clear explanation. Money should not remain in these areas indefinitely. Review aged balances and resolve anything outstanding promptly.

  5. Changes to Bank Account Details

    Most trust software sends alerts when bank account details are entered or changed. Ensure you have a verification process in place as a secondary check. This simple step can catch data entry errors such as inverted numbers, and more importantly, help detect potential fraud.

Why Monthly Reviews Matter

Without regular oversight, agencies risk lost income, audit issues, compliance breaches, and client disputes. A monthly trust review isn’t just administration — it’s a safeguard for your business, reputation, and license.

Many agencies now choose to have this review completed monthly or quarterly as an added professional safeguard. If you’d like support implementing a structured process or having your trust reviewed independently, you’re welcome to reach out and speak with Tracy, Jane, or Janine.

If you need help updating your policies, navigating End of Month compliance, or want a tailored compliance check, End of Month Angels are here to support real estate businesses across Australia. Contact us HERE