Client Snapshot
Industry:
Real Estate Investment & Property Management (Multifamily)
Location:
Arizona, USA
Portfolio:
Value-add multifamily units
Service Scope:
Backlog clean-up, full-book accounting, month-end close, and ongoing portfolio support
Key Highlights
Cost Savings:
Cleared accounting disorganization impacting reporting and decisions
Controls:
Reduced misclassifications and manual posting risk through structured processes
Operations:
Took ownership of AP, utilities, vendor management, and reconciliations
Delivery Model:
Dedicated team of 4 property accountants for ongoing close and reporting
Client Background
The client is a property management and real estate investment company specializing in acquiring and renovating underperforming multifamily properties. Operating primarily in Arizona, they manage a value-add portfolio where accurate property-level accounting and timely reporting are critical for cash flow oversight and investment decisions.
As the portfolio grew, the accounting function became disorganized with a significant backlog, reclassifications, and inconsistent communication. The client asked OHI to take ownership of the books and restore financial accuracy, reconciliation discipline, and reporting reliability.
Business Challenge
Backlog, mis postings, and unreconciled balances created reporting inaccuracies, delayed decisions, and elevated operational risk.
Duplicate Payments and Distorted Reporting
Duplicate payments were recorded for single transactions, impacting financial statement integrity.
Misclassification Across the General Ledger
Incorrect income GL mapping and reclassified transactions led to misstated revenue and reporting inconsistency.
Unreconciled Balance Sheet Accounts
Mortgage, escrow, bank, credit card, and tenant balance accounts were not reconciled, reducing cash and balance accuracy.
Operational Backlog and Property-Level Allocation Issues
Unpaid vendor invoices, entity-level misposting of fixed assets, and payroll allocation gaps created intercompany and GL imbalances.
These breakdowns compounded across properties and periods—making it difficult to trust numbers, manage payables, and monitor cash. The portfolio required a structured clean-up approach followed by a repeatable operating model for ongoing accounting, controls, and month-end reporting.
OHI's Approach & Solution
Clean-Up and Controls Stabilization
- Reviewed payment processes and categorized AP, credit card activity, and journal entries to eliminate duplicate transactions
- Corrected income GL mappings, created necessary GLs, and aligned revenue classification with tenant income streams
- Established structured reconciliation processes for mortgage and escrow accounts using statement reviews and tracking schedules
- Analyzed tenant AR, prepayments, and security deposit GLs; reclassified incorrect manual entries and introduced controls to restrict manual postings
Ongoing Portfolio Accounting and Financial Management
- Deployed a dedicated team of four property accountants to manage the portfolio and own month-end close and financial reporting
- Prepared property-level and consolidated statements, delivered timely owner reports, and completed key reconciliations
- Managed AP, utilities, and vendor workflows while improving communication structure with property managers
- Supported cash management and balancing of intercompany liabilities, with SOPs to standardize delivery
Results & Impact
| KPI | Before OHI | After OHI | Improvement |
|---|---|---|---|
| Accounts Payable Backlog | Unpaid invoices impacting vendor relationships | AP, utilities, and vendor management actively managed | Improved AP control |
| Payment Accuracy | Duplicate payments recorded | Duplicate transactions identified and addressed | Cleaner financials |
| GL Classification | Incorrect income GL mapping and reclasses | Revenue mapping aligned to tenant income streams | Improved reporting accuracy |
| Balance Sheet Reconciliations | Bank, mortgage, escrow, and cards unreconciled | Structured reconciliation with statements and schedules | Higher cash accuracy |
| Tenant Balance Alignment | AR, prepayments, and deposits not aligned | Reclasses completed and manual posting controls introduced | Reduced discrepancies |
| Operating Discipline | Disorganized workflows and communication | SOPs and structured PM communication cadence | Repeatable execution |
OHI stabilized the client’s accounting by clearing backlog drivers, restoring reconciliation discipline, and improving classification accuracy. With a dedicated four-accountant delivery team and standardized SOPs, the client gained stronger control over AP, cash management, and intercompany balancing—supporting reliable month-end reporting going forward.
“OHI helped us bring order to a complex backlog—tightening reconciliations, improving vendor and utility workflows, and strengthening cash and intercompany visibility across the portfolio.”
Arizona-Based Multifamily Property Management Company
CEO
Clean up multifamily accounting backlogs and restore control
Stabilize AP, reconciliations, and property-level reporting with a dedicated team and SOP-driven month-end close.
