Home Owners Association Accounting
Home Owner’s Association Accounting & Tax services provides extensive and competent financial assistance to your HOA board.
Our HOA financial services include:
HOA Tax Return Preparation
HOA Budget and Financial Statement Preparation
Actual vs. projected budget performance of the HOA
Receipt and distribution of funds of the HOA
HOA Accounting Reports
Prompt & accurate recording of assessment payments to the HOA
Association’s Monthly Financial Statements
Some common questions regarding HOA Accounting Issues:
What accounting procedures are required for Home Owners Associations?
In some States, the law requires that a homeowners association segregate its reserve funds from its operating funds and perform a quarterly financial review. Some governing documents increase the scope or frequency of this review. Also in some states, the law may require preparation and distribution of a budget and financial report each year as described under the heading “Association Budgeting, Reserve Planning, and Reporting Requirements” above. Reserve funds can be used only for repair, restoration, replacement or maintenance of the portions of the property that the association is obligated to maintain, or litigation involving these items. In some circumstances, the association can borrow reserve funds to cover operating expenses, but the reserve funds must generally be replenished within one year. The board is responsible for fulfilling the association’s accounting responsibilities, but it can delegate this responsibility to an officer, committee, or professional manager provided the board retains final authority. While some states that we service require these beneficial procedures, Georgia law does not require that Georgia Homeowners Association enact these procedures.
What is a HOA Budget Report?
The major elements of the annual budget report are: (i) the operating budget; (ii) a summary of the reserve study and funding plan, along with an explanation of the procedures used for the calculation and establishment of reserves; (iii) a statement as to whether the board is deferring repairs or replacement of any major component, including a justification for the deferral; (iv) a statement as to whether the board anticipates levying one or more special assessments, including estimated amount, commencement date, and duration of the assessment; (v) a summary of the association’s property, general liability, earthquake, flood, and fidelity insurance policies.
The office of Mark Bryant, CPA has the expertise to review and suggest tax strategies to minimize your HOA accounting fees and overall HOA tax liability.