Accounting

Back to homepage

HOA Funds Transparency

Just about any situation can deteriorate when there is no transparency. This is true in any business setting, including an HOA. With good transparency, homeowners know exactly the direction in which their neighborhood is heading, which leads to less problems.

Read More

The Doctrine of Accord and Satisfaction

Should you or should you not accept a payment for less that the full amount owed when it is indicated to be for full payment? It is always best to not accept a check for less that the full amount

Read More

The “Rep” Letter: the Biggest Little Three-Letter Word in Your Annual Audit

Before the accountant completes the annual audit of your co-op’s or condo’s financial records, the board and the managing agent will be asked to sign a letter acknowledging that they, not the accountant, have primary responsibility for the financial statements

Read More

Do HOAs Have To File Tax Returns?

A home owners association is considered a corporation by the Internal Revenue Service. Even if the association is organized as a non-profit, the IRS will treat it as a corporation. That means HOAs must file tax returns, including a state

Read More

3 Basic Association Accounting Concepts HOA Board Members Should Know

Making and sticking to a budget is not a hard concept for someone to understand. You bring in X amount of dollars each month and you have X amount of bills to pay. The amount of your income is spread

Read More

What is the Best Accounting Method for Your HOA?

As an HOA board member, it can be difficult to determine which accounting method is appropriate for your community. If you choose the wrong type, you could be looking at added stress and problems down the road. And since switching

Read More

Closing the Books: Year-End Checklist for Community Association Managers

Unlike retailers, who are basking in the slowdown after the madness that is Holiday shopping, Community Association Management professionals are just getting started. The busiest time of the year is upon our industry – the dreaded YEAR END.    

Read More

Top 5 Community Association Financial Fails

As a CPA (and HOA board member) who has been providing tax and audit support to community associations for over 15 years, I work mostly with communities and property management companies that are well-run and trying to stay that way.

Read More

Closing the gap between accounting and community association management

As long as the dividing line is clear, these two teams can usually stay functional. However, the lines in association management are often blurred.   In one management company I visited, the accounting department had ruled that any and all costs

Read More

A More In-Depth Look at HOA Accounting

As you may well know, being a member of the Board of Directors for your homeowners association means having an immense financial obligation to your community. Your job will become convoluted by illegible or inaccurate financial reports and records, which—if

Read More

Beginner’s Guide to HOA Finance, Budgeting, and Accounting

When it comes to interpreting your HOA management company’s financial reporting, it’s helpful for HOA members to understand the accounting process used by their management company, especially if they wish to maintain and manage community funds in a practical manner.

Read More

Don’t Lose Money Because of Sloppy Bookkeeping

About 2 ½ years ago I wrote about a case involving the Wellesley at Lake Clark Shores HOA which lost out on collecting close to $2,000 in interest and late fees and also lost out on collecting a whopping $10,000

Read More

Simplifying the Accounting for Your Homeowners or Condo Association

It is the time for some condominiums and HOA’s to do many of their budgets. For many people, budgets look like a mess of meaningless numbers. But, like it or not, the Board is responsible for understanding what those numbers

Read More

Fudging the numbers in Community Association Accounting

There is a big trendy word these days in business practices: “Transparency”. However, in the accounting field, transparency is not something new or trendy, it’s how we do our day-to-day jobs. Accounting is all about the numbers and how we

Read More

A Blueprint for the CAM Accounting Cycle

The best way to ensure accuracy in your accounting procedures is to follow a consistent process. The community association management accounting cycles provided in this article will give you a standard process blueprint that you can follow. As with any

Read More

Accrual Accounting vs Cash Accounting

As HOA accounting specialists, we are often asked about the differences in cash and accrual accounting systems. If you’re not familiar with accounting methods, this topic is a great place to start learning. Currently, both cash and accrual accounting methods

Read More

Choosing an Accounting Method for your Community Associations

Deciding which Accounting method to use is not something to take lightly or to think that if you don’t like it one way you can switch to the other method. When you chose your method, adherence to the initial choice

Read More

Understanding CPA Service Levels: Compilation, Review and Audit. A Primer.

The controlling documents of most co-ops and condominium associations outline the requirement for the preparation of your financial statements. In addition, several states have minimum financial statement requirements. It’s important for boards to understand that there are different levels to

Read More

Understanding CPA Service Levels – Compilation, Review and Audit

The By-laws, CC&R’s or other controlling documents of most community associations delineate the requirement for preparation of financial statements of the Association. In addition, several states have minimum financial statement requirements.    Read More……

Read More

How Community Association Accounting differs from Business Accounting

If you’ve learned how to balance your personal checkbook, you have a basic understanding of accounting principles. The average company operates on a form of accounting called Goods and Services accounting, which basically means tracking incoming monies (credits) and outgoing

Read More

Why you should pay special attention to closing your books this year

I’ve been posting the condo and HOA news for over 8 years now.  During the first 6 years, I might have run across 3 or  4 cases  of people stealing from an association.  During the last 2 years, I’ve seen

Read More