HOA Accounting Internal Controls

I hope you watched the above video overview on Internal Controls....if you haven't, do so now!

Here are the most important items of Internal Control in your HOA Accounting Department you need to have in place as an owner or executive in your Management Company's Internal Controls in your Management Company's Accounting Department.

1. Proper checks and cross-checks: The easiest way to define deficiencies in this category is to ask yourself this one question: Can any one person, including myself, do all the following: - Initiate a payable item or approve a purchase; - Approve a payment or funds transfer; - Sign checks, initiate ACH payments or bank wires;

If your answer is 'yes', then initiate an internal policy and distribute it to your staff! This will help protect yourself from theft and fraud in your management company.

2. Proper and specific insurance coverage: Many management companies only carry General Liability coverage and you'd be surprised how many things are actually not covered under a General Liability Policy. Get specific.....get Theft & Crime coverage, Directors & Officers (D&O) coverage and Errors & Omissions (E&O) coverage. It's relatively cheap premium payments given the peace of mind and coverage it provides!

3. Have a system to

For more specific help on how to create and implement the above Internal Controls, go to: Go to Private Coaching information here