Trust accounting mistakes can create compliance risks. Discover the most common issues strata managers face and how to prevent them.
Trust accounting is the backbone of every strata management business. When it’s done well, it creates confidence, compliance, and clarity. When it’s not, even small errors can quickly turn into audit issues, compliance risks, and unnecessary stress.
After working closely with strata management businesses across onboarding, reconciliations, and system reviews, we’ve seen the same issues come up again and again. The good news? Most trust accounting mistakes are preventable with the right processes, checks, and support.
Below are the most common trust accounting mistakes strata managers make, and how to avoid them.
One of the most frequent issues we see is reconciliations that appear complete but don’t genuinely balance.
This can happen when:
How to avoid it:
Reconciliations should always be completed methodically, with clear documentation for timing differences and adjustments. If something doesn’t balance, it’s a signal to investigate, not override. Regular reviews by a second set of eyes can catch issues early before they compound.
Trust accounting software is powerful, but only when it’s configured and operated correctly. Many long-running issues can be traced back to the initial setup, sometimes years earlier, especially in platforms like PropertyIQ and StrataMaster.
Common setup issues include:
How to avoid it:
A clean, compliant setup during onboarding is critical. It’s far easier to configure systems correctly at the beginning than to untangle errors later. Equally important is ensuring that the people operating the software understand how to use it properly because even the best configuration can fail if processes aren't followed.
Many strata businesses depend heavily on one trust accountant who “knows how everything works.” While experience is invaluable, this creates risk if processes are undocumented or knowledge lives only in one person’s head.
If that person is away, leaves, or becomes overwhelmed, issues can surface quickly.
How to avoid it:
Clear procedures, documented workflows, and shared knowledge reduce dependency on individuals. Cross-training and external support during peak periods or staff transitions can protect business continuity and reduce pressure on internal teams.
Trust accounting isn’t a “set and forget” task. We often see reviews done irregularly or only when something goes wrong.
This increases the risk of:
How to avoid it:
Regular reviews help identify issues early. Structured checklists and independent reviews provide confidence that accounts remain accurate, compliant, and audit-ready.
Compliance requirements can feel administrative, but they exist for a reason. When trust accounting compliance is treated as a formality rather than a core responsibility, mistakes tend to slip through.
How to avoid it:
Understanding why compliance matters leads to better systems and decisions. When trust accounting is viewed as a foundation for transparency and trust, not just a requirement, it naturally becomes stronger and more reliable.
Many strata managers are doing the best they can with limited time and increasing complexity. Having access to specialist trust accounting support can make a significant difference, whether that’s through:
The goal isn’t to replace internal teams. It’s to support them, reduce risk, and create confidence.
Trust accounting doesn’t need to be stressful or reactive. With the right setup, regular checks, and clear processes, it can become a stable, reliable part of your business rather than a source of concern.
If you’re unsure whether your trust accounting processes are as strong as they should be, a review can provide clarity and peace of mind.