Have you received a letter from the North Carolina Real Estate Commission asking you to submit a copy of your latest reconciliations, journals, and trial balances for the trust accounts you manage? Before you begin to worry or, worse, send in those reports generated by your accounting software, be sure to understand that you have only one chance to submit a balanced report that will get the case closed against you and your firm.
Far too often, we learn that licensees submit their trust records to their licensing agency with the knowledge that something isn't quite right. Before you send off those imperfect reports, take the time to investigate the mistakes and correct the necessary entries to ensure that all of your accounts balance and that there are no negative ledgers.
Rather than having a letter audit turn into a disciplinary proceeding before your board, your actions to correct your accounts will ensure that you have an audit that is closed and a letter commending you for your diligent accounting practices.
My partner, Pam Vesper, has developed a few short tutorials that provide the information you need to maintain your books and records as required by the Commission. We will be editing and uploading those guides over the coming weeks and we hope that they help.