Both board members and homeowners have an interest in the money end of an HOA’s business. After all, it’s the owners who have to pay higher fees when the homeowners association goes over budget. And it’s the Board who is responsible for hiring the right people to run the HOA’s financial business. The good news is that when to understanding the role of an HOA CPA, you don’t have to go it alone. Read on for tips for handling it.
The board hires service providers and vendors to help with various tasks, but if things go wrong, it’s the Board who is responsible. When it comes to financial matters, most board members do not have financial experience or expertise, so it makes sense for them to hire experts to handle the financial end of things.
The HOA Management Company Handles the Recording of Financial Matters. The HOA’s management company handles everything to do with the physical property. It also handles the HOA accounting end of the following financial matters:
If an HOA is self-managed, then the financial records keeping is the Board’s Treasurer’s responsibility, and they should record everything. In either case, the record keeper should use financial software.
Certified Public Accountants Serve Important Functions. HOA Boards often hire a Certified Public Accountant (CPA) who conducts audits of the property manager’s financial bookkeeping. The CPA also prepares the HOA’s tax filings and financial statements.
The HOA Annual Audit. Governing documents often require an annual audit for the HOA. If the documents do not require an annual audit, the board should require one if they have a large cash flow
If you are a community association management company, it is smart to have a team of experienced homeowners association attorneys on your side when you run into legal issues. Common disputes involve issues between unit owners, assessments collection disagreements, construction defects, challenges to condominium amendments of by-laws or other documents, and disagreements with local governments. Contact the HOA lawyers at Stevens & Goldwyn, P.A. for a free consultation.
Through a free, no-obligation consultation, you can discuss your legal concerns with a partner of our firm. We look forward to answering your questions and seeing how we can meet your legal needs.
Call 954-476-2680 or contact us online today.