Blog

What’s Holding REITs Back from Being “Always Audit-Ready”? 

by Kris Subramanian | Posted on Tuesday May 20, 2025

In a recent JIFFY.ai pulse survey of REIT finance leaders, here’s how respondents rated their audit preparedness: 

  • 10% – Always audit-ready 
  • ⚠️ 40% – Mostly compliant, but time-consuming 
  • 🛠 35% – Struggle with documentation and traceability 
  • 🔥 15% – Reactive: Scramble during audits 

When asked what compliance controls are hardest to enforce, these stood out: 

  • Threshold-based approval rules 
  • Real-time tracking of audit trails 
  • Data validation before posting 
  • Role-based segregation of duties (SoD) 
  • Automated backup of journal entries and reconciliations 
“During our last Journal Voucher (JV) audit, it took two weeks just to find and organize supporting docs. Every system had a piece of the puzzle.” 

Assistant Controller, Public REIT 

Why Audit Challenges Are Magnified in REITs 

REIT finance structures are inherently complex: 

  • Multiple legal entities and JV ownerships 
  • High volume of recurring entries like rent accruals, CAM recoveries, and intercompany eliminations
  • Sprawled tech landscape (ERP + lease management + Excel + property manager emails) 

Add in the need to meet SEC, SOX, and NAREIT compliance, and you’ve got a system where manual processes introduce audit risk at every turn

The Case for Built-In Compliance and Continuous Audit Readiness 

What Leading REITs Are Doing Differently with Automation: 

Embedded Threshold-Based Workflows 
Ensure that no journal entry or financial adjustment is posted without multi-level, rule-based approvals. 

Real-Time Audit Trails 
Track every action—who posted what, when, and why—with full traceability and time-stamped logs. 

Pre-Post Validation & Exception Alerts 
Catch errors, data mismatches, and compliance gaps before entries hit the GL. 

Automated Backup of JVs and Supporting Docs 
Every entry comes with embedded attachments—no more digging through inboxes or shared drives. 

Role-Based Access & Segregation of Duties (SoD) 
Ensure internal controls are enforced consistently across teams, properties, and entities. 

Why Ready-to-Use Audit Automation Solutions Beat Custom Setups 

Yes, no-code solutions let you build your own rules—but that still puts the burden on your finance team to design and test every control. 

In contrast, a REIT-ready solution like JIFFY.ai comes pre-configured with: 

  • Industry-specific compliance logic 
  • Built-in audit templates for JV and property rollups 
  • Automated logs for reconciliation exceptions 
  • Scalable approval chains and validations that grow with your portfolio 
“JIFFY.ai took our audit prep from weeks to hours. Every document, approval, and anomaly are traceable. Auditors actually thanked us for being organized.” 

Director of Finance, Commercial REIT 

Final Word: Compliance Isn’t a Checkbox—It’s a Foundation

In today’s real estate climate, being audit-ready isn’t a luxury—it’s a necessity. REIT finance teams must move from reactive, manual compliance to embedded, intelligent controls that ensure transparency and speed. 

With intelligent automation, your REIT finance team can: 

  • Be audit-ready every day—not just year-end 
  • Mitigate regulatory risk with confidence 
  • Eliminate scrambling and documentation gaps 
  • Scale compliance as your portfolio grows 

Curious how leading REITs are automating compliance and audit readiness?