Common interest realty associations are responsible for the administration, operation, maintenance and repairs, and replacement of common elements of properties such as condominiums, cooperative housing, townhomes, and timeshare units.
The owners elect a board of directors for the association to represent their interest in the ownership of the common property. Often these boards contract with a professional management company to manage the association on behalf of the owners.
Both the management company and the board of directors have a fiduciary responsibility to the owners of the property. To fulfill this fiduciary responsibility it is imperative that the board engage a firm highly qualified in providing professional accounting services to the Association.
We offer comprehensive accounting services that enable our clients to better serve their common interest realty associations. Our services include:
We provide professional accounting reports and financial statements that help board members and the association membership review and understand financial transactions and results. This is done through an annual audit, review, or compilation. These audited, reviewed, or compiled financial statements are also used by property owners, lenders, and potential buyers to judge the quality of the investment.
We help our clients determine which type of report will best address their specific circumstances and financial needs.
A budget is a critical part of a condominium or homeowners association financial oversight. We help the board members project revenues and expenses for the coming year, and provide expertise for making better decisions. A poor budget may lead to an unnecessary special assessment or important maintenance work being delayed because the money is not available.
Proper budgeting helps a board manage the association's financial affairs to provide stability and predictability for the homeowners. Homeowners budget their own personal finances, so they rely on the board to manage the association's budget wisely to avoid unexpected costs or special assessments.
We can help you establish a budget that will create reserve funds for maintenance of your major real estate components. This professional format will ensure you are financially prepared for repairs, replacements, and unexpected maintenance needs for your property, including driveways, landscaping, exterior painting, etc.
Boards that invest the time to prepare a thorough budget will make their job easier throughout the remainder of the year. We produce financial statements that can be compared to the budget to review the accuracy of the budget, and help the board make adjustments in spending or revenue as needed to keep the association in a good financial position.
We provide accounting services that assist our clients in all tax situations. Our knowledge of real estate tax laws ensures that our clients' financial statements, reports, and tax returns are complete and prepared accurately and timely to meet all their business requirements.
Tax codes and laws are ever-changing, and we make it a priority to understand current tax laws, complex tax codes, and new tax regulations.
We specialize in tax return preparation, tax planning, and tax reduction for community associations and cooperatives. There are various tax elections and tax rules that apply to associations and they have a significant impact on how much tax you will pay, if you pay any at all. We can assist you in minimizing your taxes and we will help you minimize your risk upon IRS audit.
In developing a beneficial accounting system for our clients, we consider the personnel, policies and procedures, technology, and financial records within each client's business. We customize the accounting system to optimize the client's financial information and effectively communicate that information to decision makers.
We work with our clients to ensure their accounting system is cost effective and meets the client's needs for accessing financial information as efficiently as possible. We match the client's accounting system needs with the resources available for operating the system once it is in place.
We help our clients develop internal accounting controls that ensure efficient and effective business operations, compliance with current laws and regulations, accurate financial reporting, and safeguards against theft and unauthorized use of assets.
By focusing on our clients' specific needs, we can establish internal controls to govern their financial systems and provide oversight of their business processes. This ensures the client's established policies and procedures are followed consistently. It is also a means by which the client's financial resources are directed, monitored, and measured.
We can assist our clients in developing a reserve analysis to determine an accurate estimate of the costs needed to repair and replace major common area components of the property over long term. We understand that sufficient funds must be set aside by the association as reserves so funds are available when needed for major repairs and replacements (including roofs, parking areas, landscaping, etc.).
The reserve analysis is a very important part of the association's operating budget and can be used as a financial management tool to help balance and optimize property values, as well as costs for the membership. Association members will know they are protected against declining property values due to lack of maintenance or stewardship.
Our reserve analysis also gives owners and potential buyers a more accurate and complete picture of the association's financial strength and market value.