The useful starting point
Review supported Balance Sheet balances, compare the trailing property-level Profit & Loss, and trace unusual movement to the General Ledger. Read NOI alongside occupancy, vacancy, debt service, and capital spending so operating performance is not confused with available cash.
01 / REVIEW
Begin with supported balances
Review bank and loan balances, receivables, payables, security deposits, and intercompany accounts within the agreed scope. Match material balances to statements or schedules. Deposits and owner-related balances need their own supporting records; they should not disappear into a net cash number.
02 / REVIEW
Define NOI consistently
For the fictional packet, operating income of $135,000 less operating expenses of $48,500 gives $86,500 in NOI. Interest and depreciation sit below NOI. Confirm the accounts included in your own calculation and use the same definition across properties and reporting periods.
03 / REVIEW
Use the trailing Profit & Loss to find movement
Compare income and expenses over time by property where reliable coding is available. Look for changes in vacancy, maintenance, utilities, and other material categories. Use occupancy and operating records for context. An unusual repair cost may reflect timing or a genuine operating issue; the summary alone cannot tell you which.
04 / REVIEW
Return to the General Ledger
Trace unexpected balances to transactions and supporting records. Check the property, entity, account, and reporting period. Confirm whether an item was miscategorized, allocated inconsistently, or recorded twice. Record unresolved questions before presenting a conclusion about property performance.
05 / REVIEW
Explain why NOI and cash differ
In the sample, $86,500 NOI becomes $57,500 net income after interest and depreciation. After noncash depreciation, receivable and payable changes, debt principal, and capital spending, net cash movement is $18,400. These are different measures. Showing the bridge helps ownership understand both operating performance and the timing of cash.
Examples are fictional. Accounting treatment, reporting definitions, and responsibilities depend on your business and agreed engagement.
Related software documentation
For the mechanics of reconciliation and reporting within QuickBooks Online, consult the official documentation. Available reporting features depend on your subscription and setup.
Intuit: Reconcile an accountIntuit: Run reports by classIs property NOI the same as cash available to ownership?
No. Debt service, capital spending, noncash expenses, and timing differences can make NOI differ from cash movement or distributable amounts.
What should a property-level review include?
Agreed financial statements, supported balances, consistent property coding, relevant operating measures, and a documented list of explanations and open items.