INTRODUCTION
In 2021, a real estate client approached Mercurius Advisory Services with concerns over inconsistencies in their rental income and expense records. Our team conducted a prompt diagnostic review and implemented a focused cleanup plan to address these issues, which resulted in improved financial transparency, clean tenant ledgers, and restored confidence in operational reporting.
DISCUSSION
The client operated in property acquisition, refurbishment, and rental management, and also offered training programs for aspiring real estate professionals. They used Buildium, a property management software, to handle day-to-day operations across multiple properties.
However, disparities in tenant ledgers and payment records produced erroneous financial data, making it more difficult for them to efficiently plan and monitor performance.
REQUIREMENTS
The client needed a trusted accounting company to:
• Reconcile tenant records accurately in Buildium
• Categorize rental income and operating expenses across properties
• Ensure consistent and transparent financial reporting
• Clean historical records to reflect accurate cash flow and balances
SOLUTION
1. Tenant Ledger Reconciliation
Our in-house team conducted a comprehensive review of tenant records within Buildium and identified discrepancies such as misapplied payments, duplicate transactions, and unrecorded entries that were impacting the accuracy of financial statements.
2. Lease Agreement Alignment
We cross-verified all tenant payments against lease agreements to ensure proper classification and timing, which helped to correct inconsistencies and align Buildium records with actual bank deposits and lease terms.
3. Historical Cleanup of Income and Expenses
A detailed cleanup of historical rental income and operational expense data was performed to reflect true cash flows. This step eliminated prior reporting gaps and inaccuracies that had affected decision-making.
4. Process Standardization for Ongoing Accuracy
We established clear procedures for monthly rent recording, deposits, and expense allocations. These were documented and shared with the client’s team to ensure consistency in future data entry and reporting.
5. Regular Coordination and Reporting
Throughout the engagement, we maintained close collaboration with the client’s internal team, providing regular progress reports and validations. This ensured transparency, timely approvals, and alignment on all updates.
6. Improved Financial Reporting & Compliance
By the end of the cleanup, the client’s Buildium records were accurate and audit-ready. The newly implemented processes also allowed for better tracking of cash flow, property performance, and compliance reporting.
CONCLUSION
Mercurius restored full control over the client’s rental financials through a meticulous system cleanup, reconciliation, and reporting improvement process. With clean data in place, the client could confidently shift focus toward expanding operations and enhancing their educational programs.
Our expertise in real estate accounting, deep platform knowledge, and proactive service delivery helped us maintain a 100% client satisfaction score and continue to provide long-term value to our trusted partners.
