HOA Profit Gurus HOA Accounting
For Email Marketing you can trust
Homeowner Association Accounting can be defined as the following: The Management company Accounting Department (the 'Manager') collects and accounts for all funds collected and all amounts received on behalf of the Association and shall deposit or direct such funds into the Association's bank accounts at an FDIC Insured bank ("Bank Accounts"). The Bank Accounts are in the Association's name only. All funds collected by Manager should be collected for the account of the Association and are immediately deposited in the Bank Accounts. The Bank Accounts usually consist of an Operating Checking Account and a Reserve Savings or Money Market account. The Manager provides the Association with a reconciled Bank Statement with each monthly financial statement. The Manager pays only those bills with pre-approved amounts within the annual variable budget or signed contract for such services, work and supplies ordered in connection with maintaining and operating the Common Areas; pay or cause to be paid all such bills, water charges, gas charges, electricity charges, sewer rent, assessments, and other taxes assessed against the Association or its Common Areas as and when the same become due and payable. The Manager maintains a comprehensive system of office records, books, and accounts which will be in Manager's custody, but which shall be the property of the Association and subject to examination by those authorized by the Association. The Manager renders to the Association, usually by no later than the twentieth (20th) day of the following month financial statements including a balance sheet, income and expense statement, paid invoices, open item list and a list of delinquent members. Annually, as soon as practicable after the end of the Association's fiscal year and at the Association's expense, the Manager shall cause said records, books, and accounts to be summarized in the format of a financial accounting or audit prepared by a Certified Public Accountant approved by the Association. The resulting report will be submitted to the Association. If requested by Association and at the Association's expense, Manager prepares for execution all federal and state tax forms and all forms, reports and returns required by law in connection with unemployment insurance, worker's compensation insurance, disability benefits, social security, and other similar taxes or regulations in effect or imposed.
You can become a VIP Member of HOA Profit Gurus and get Your VIP Password today! Members get 1) access to more tips, 2) implementation guidelines for our suggestions, 3) discounts on Private Coaching and more.
|