Client CAM charge checklist for CPAs
Client asks if their CAM charges are right. That question often lands with the CPA because the charge shows up in rent expense, occupancy cost, or a year-end true-up. The client may not know whether the issue is a lease issue, an accounting issue, or a landlord support issue.
Use this page as a first 10-minute check. It does not replace a lease audit. It helps the firm decide whether the file is normal, incomplete, or ready for deeper review.
CAM charge first pass: A short review that checks whether a client's common area maintenance charge has enough support, matches key lease terms, and needs a deeper CAM audit. It is a triage step. It is not a legal opinion or a full lease audit.
The first 10-minute check
Start with scope. Ask what changed. Did the client get a new annual reconciliation? Did the landlord send a budget increase? Did the client change locations, expand space, or renew the lease?
Then ask for five files.
- Signed lease and amendments
- Current CAM reconciliation
- Prior-year CAM reconciliation
- Landlord invoice support or general ledger detail
- Client payment history for the period
If the client has only a bill and no support, the first finding is not an overcharge. It is a support gap. Ask the landlord for the backup the lease allows the tenant to request.
What to scan first
Check the deadline first. Many leases give a short audit-rights window after the reconciliation arrives. If the window is short, the client needs a fast decision.
Check the year-over-year change next. A large jump does not prove an error. It tells you where to look. Compare the current statement to the prior year by line item. Focus on repairs, maintenance, management fees, taxes, insurance, reserves, utilities, and capital work.
Check the lease terms that control the math. You need the tenant share, rentable area, excluded costs, management fee cap, gross-up language, base year, and CAM cap. If those terms are not in the file, the review is not ready.
A simple workpaper layout
Give the staff reviewer one sheet with six columns.
| Field | What to enter |
|---|---|
| Statement line | Exact line name from the landlord statement |
| Current amount | Amount billed this year |
| Prior amount | Amount billed last year |
| Lease term | Clause that may control the charge |
| First-pass issue | Support gap, fee issue, share issue, CapEx issue, tax issue, or no issue |
| Next step | Request support, accept, route to audit, or refer to counsel |
This workpaper keeps the review simple. It also gives the partner a clean way to explain why the firm did or did not recommend a deeper review.
Red flags worth routing
Route the file to deeper review when one of these items appears.
- A management fee rate that does not match the lease
- A pro-rata share that uses the wrong square footage
- A capital project billed as one-year maintenance
- A base-year charge that looks reset or missing
- A CAM cap increase that exceeds the lease formula
- Taxes or insurance billed outside the lease scope
- Reserve charges when the lease excludes reserves
- A landlord refusal to provide support
Do not promise recovery. Say the item needs lease-backed review. The partner owns the recommendation after the file is checked.
How to talk to the client
Use plain language.
"We did a first pass. The charge may be right, but the file has items that need support. The next step is to match the lease to the statement and test the math."
That answer helps the client without turning the CPA into legal counsel. It also keeps the service line clean. The firm is not saying the landlord is wrong. The firm is saying the file has enough signal to review.
For client-facing wording, use the unexpected CAM bill script. For tax-season cross-sell questions, use the CPA trigger question guide.
Sources used
- CPA.com CAS services for the advisory-service frame used by many CPA and CAS firms.
- FASB leases topic overview for the accounting context around lease obligations.
- IRS tangible property regulations for the repair versus capital improvement screen.
- IRS Publication 946 for depreciation and recovery-period context.
Where CAMAudit fits
CAMAudit fits after the first-pass checklist. The partner collects the lease and statement, runs the file, reviews the findings, and decides what to send the client. The tool supplies the structured review engine. The firm keeps the client relationship and the review-and-sign step.
Use it when the first pass finds enough signal for a real audit, but the firm does not want staff to build lease math from scratch.
Frequently Asked Questions
What should a CPA do first when a client asks if CAM charges are right?
Ask for the lease, CAM reconciliation, landlord invoice support, prior-year statement, and payment history. Then run a quick scope check before making any recommendation.
Can a CPA review CAM charges without being a lease auditor?
A CPA can run a first-pass accounting review, ask for support, and flag issues for review. The firm should define scope, avoid legal advice, and refer legal disputes to counsel.
What CAM checks fit a 10-minute first pass?
Check the bill date, audit window, year-over-year change, management fee rate, pro-rata share, large repairs, reserve lines, taxes, insurance, and any charge the lease excludes.
When should the CPA route the file to a CAM audit?
Route the file when the dollar change is material, the lease has audit rights, the landlord supplied backup, or the first pass finds a fee, share, cap, base year, or CapEx issue.
How should the CPA explain this to the client?
Say the first pass found items that need lease-backed review. Do not promise a refund. Explain the next step, the documents needed, and who reviews the findings.