What Is Trust Accounting — And Why Your PMS Should Handle It Natively

💡 Intro

Trust accounting gets tossed around a lot in the vacation rental world — sometimes as a buzzword, sometimes as a legal requirement. But if you manage reservation revenue, trust accounting isn’t just for regulated states — it’s the financial backbone of running a responsible, scalable business.

🔍 What Is Trust Accounting?

Trust accounting is the practice of holding and managing unearned funds — including the property owner’s share, your company’s commission, and any other amounts being held on behalf of others (like agent commissions, taxes, or funds for cleaners) — until those funds are considered earned and eligible to be disbursed.

When a guest makes a payment on a reservation, that money may touch multiple parties — but that doesn’t mean it’s ready to be split and paid out. Each management company defines when revenue is earned based on how their business is structured. Some disburse on payment, others on arrival or departure.

It’s similar to how SaaS companies decide whether to bill customers in advance for the next billing period or invoice after usage — it’s a decision about when revenue is recognized.

Trust accounting ensures you always know:

• What funds have been collected
• Who those funds belong to
• When they’re considered earned
• When and how they should be disbursed

🧯 It’s Not Just a Compliance Box

Even if your state doesn’t require a formal trust account, the responsibility still exists. Without trust accounting:

• You risk disbursing money too early
• You can overpay owners or underreport commissions
• Your reports, books, and balances can get out of sync fast

Trust accounting protects everyone — you, your owners, your partners, and your business reputation.

🔗 Why Built-In Beats Bolt-On

Some platforms bolt on trust accounting as an integration or third-party add-on. RNS doesn’t.

We’ve built it directly into the core of our platform — because if you’re managing other people’s money, you can’t afford to get it wrong.

With RNS, you get:

• Accurate deposit tracking
• Revenue recognition that aligns with your preferred disbursement timing
• Clear separation of held funds
• Automated disbursements and reporting
• Clean reconciliations with fewer surprises

✅ Bottom Line

Trust accounting isn’t about jumping through legal hoops — it’s about financial clarity, operational control, and building trust with owners and stakeholders.

Whether you're managing 50 properties or 500+, your PMS should give you confidence that the money is handled correctly — every time.

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