How to Prepare Your Trust Account for the New Financial Year

Lorelle Ursino
Apr 16
3 min read

As the end of the financial year approaches, real estate agencies across Australia must ensure their trust accounting is in order. EOFY preparation isn’t just about meeting compliance requirements. It’s an opportunity to streamline processes, reduce errors, and improve financial efficiency for the year ahead.

Managing property sales, rentals, or commercial real estate requires a structured approach to trust accounting. This practical guide will help you prepare your trust accounts for the new financial year and ensure compliance and organisation.

1. Reconcile Accounts Before EOFY

One of the most critical steps in EOFY preparation is reconciling your trust accounts. This process ensures that your records match actual bank balances, helping to prevent discrepancies and compliance issues.

Perform a final bank reconciliation for all trust accounts.
Cross-check deposits, disbursements, and outstanding balances.
Identify and rectify any discrepancies before reporting.
Ensure reconciliations align with state-specific trust accounting regulations.

Maintaining up-to-date reconciliations facilitates a more efficient audit process and mitigates the potential for financial discrepancies.

2. Complete Internal Audits

A thorough internal audit helps uncover any inconsistencies or non-compliant practices before external auditors step in. An internal review of trust accounting records should include:

Reviewing past audits for recurring issues.
Checking whether all required documentation is properly recorded.
Verifying compliance with trust accounting regulations in your state.
Addressing missing receipts, incorrect allocations, or processing errors.

Outsourcing an audit review to us at Think Cloud Solutions can provide peace of mind, ensuring your records are compliant and error-free.

3. Update Compliance Procedures

Australian trust accounting regulations evolve frequently, and failing to stay updated can lead to penalties. Ensure your agency is compliant by:

Checking for any regulatory updates from the government and industry bodies.
Verifying that trust money is handled in accordance with legal guidelines.
Updating training materials for staff to reflect current best practices.
Consulting with trust accounting professionals for compliance advice.

4. Organise and Backup Your Records

EOFY is the perfect time to organise your trust accounting records and improve your document management process.

Digitise and securely store all receipts, invoices, and financial statements.
Ensure your trust accounting software is up to date and running efficiently.
Back up all records to avoid data loss in case of system failures.
Archive old files while ensuring easy retrieval for audit purposes.

Well-maintained records will save time and frustration when responding to compliance checks or legal inquiries.

5. Review and Improve Accounting Processes

A new financial year provides the opportunity to assess and enhance trust accounting processes for better efficiency.

Identify bottlenecks in your current system.
Upgrade to better trust accounting software if your current system is outdated.
Train staff on best practices to reduce human error.
Consider outsourcing trust accounting tasks to experts like Think Cloud Solutions for improved accuracy and compliance.

6. Plan for the Year Ahead

Once your EOFY preparation is complete, take a proactive approach to the new financial year by:

Setting clear financial goals for your agency.
Creating a budget that accounts for compliance costs.
Mitigate potential issues by instituting a regular schedule of internal audits.
Establishing a support system for when your trust accountant is on leave.

EOFY doesn't have to be a headache for real estate agencies. Proper preparation of your trust accounting can ensure compliance, reduce errors, and set the stage for a smoother financial year.

If you need expert assistance with EOFY reconciliations, compliance checks, or trust accounting outsourcing, we are here to help. Contact us today to discuss how we can support your agency’s financial success.