Understanding whether your trust account starts in a surplus or a deficit is a critical part of go-live planning and opening balances. This concept explains why your trust balance looks the way it does and what it means for owner statements and payouts.
What Is the Trust Balance?
Your trust balance represents all guest funds currently held in your trust account, net of obligations. In VRTrust, the trust balance is determined by:
Guest payments received
Minus amounts owed to owners
Minus taxes collected but not yet remitted
Minus amounts owed to the property manager
Minus payouts already made
At go-live, VRTrust uses opening balances to recreate this position accurately.
VRTrust transparently tracks the trust balance on an ongoing basis, allowing property managers to identify and investigate surpluses and deficits quickly.
Trust Surplus
A trust surplus means:
The trust account holds more money than is currently owed
After accounting for:
Owner payables
Tax liabilities
Guest deposits
There is remaining unallocated trust cash
This is common when:
Guest payments have been received for future stays
Owners have not yet been paid
The property management company has not transferred funds from the trust to operating account (such as management commission revenue)
A surplus is not necessarily an error.
Trust Deficit
A trust deficit means:
The trust account holds less money than is required to cover obligations
Amounts owed exceed the available trust balance
This can occur when:
Owners or the property manager were paid before guest funds cleared
In trust accounting, a deficit in the trust account creates a risky financial scenario, and should be tracked closely.
Common Mistakes to Avoid
Assuming surplus or deficit means “wrong”
Ignoring the surplus/deficit amount
Recording opening balances without reconciling to the bank
Attempting to “zero out” surplus or deficit artificially
The goal is accuracy, not forcing a zero balance.
Summary
You’ve handled trust surplus vs. deficit correctly when:
The trust balance matches the bank at go-live
All opening balances are accounted for
The surplus or deficit amount is explainable
Future months roll forward cleanly