We all have those things that keep rearing their little heads every month.

One being unpresented payments.

Do we hear a hell yeah?

What is an unpresented payment?

An ‘unpresented payment’ in a Trust Account typically refers to a transaction or payment that has been recorded in the Trust Accounting system but has not yet been presented to the bank for processing.

Here’s how it works:

  1. Recording

    When a payment is made from a Trust Account, the transaction is recorded in the Trust Accounting system to keep track of the funds’ movement.

    This includes debiting the Trust Account balance to reflect the outgoing payment.

  2. Presenting

    After the payment is recorded, it needs to be presented to the bank for processing.

    Presentation to the bank usually involves processing a batch EFT or batch BPay.

  3. Clearing

    Once the bank processes the payment, it clears from the Trust Account and the Trust Account balance is reduced accordingly.

    You then mark this off in your Trust Accounting software.

It’s important to keep track of unpresented payments in Trust Accounts to ensure that the account’s records accurately reflect the available balance.

Failure to account for unpresented payments can lead to discrepancies between the recorded balance and the actual balance in the Trust Account, potentially causing financial and legal issues.

Proper accounting and reconciliation procedures are crucial for managing Trust Accounts effectively and ensuring compliance with relevant regulations and laws.

How to avoid unpresented payments

  • Check EFT payments and Bpay payments have been uploaded to your bank.
  • Every bank is different, file approvals may be in different places within your internet banking. Make sure all files are approved as Licensee in Charge.
  • Run an unpresented payment report daily when receipting rent, particularly after Mid and End of Month.
  • Check your bank statement to verify that funds have left the account.
  • Never reupload the same payment file without checking the bank first.

If you need assistance when dealing with unpresented payments, contact the team at End of Month Angels to discuss our support solutions.

Jane Morgan is the Director of End of Month Angels, a consultancy firm specialising in Trust Accounting. Jane knows the legislative requirements of running a successful Real Estate office through her 26 years’ industry experience. Don’t trust just anyone with your trust accounting. Book an appointment with an End of Month Angel today.