Straying from the regular schedule only causes issues between the board members and homeowners. No matter what decision is made regarding frequency, it must be maintained. Larger associations with more complicated budgets may opt to prepare statements quarterly or annually. Smaller Condo & HOA’s with simpler budgets can prepare monthly without much problem. Of course, the more frequently statements can be prepared, the more helpful they will be for the board of directors. It will depend on state regulations, community goals, and the size of the community. There is no standard frequency that financial statements must be prepared. How Often Do Financial Statements Need to be Prepared? Making it too complicated alienates people and hinders community relations. For financial statement to be effective, it needs to be prepared so that anyone can understand the content. These documents will be available to everyone in the community, most of which do not have advanced accounting degrees. It should also be put into an easy to read format. Every detail that can be added, no matter how small, can provide a more thorough insight and lead to better decision making. The most common mistake that people make when preparing financial statements is not adding enough detail. A general ledger showing all account activity.Receivables, including all money due to the association from sources like collections and credits from vendors or homeowner fees.A balance sheet showing account balances.Specific details that must be included depends on state regulations and community bylaws, but there are some basic details that should be included regardless of size or location: Read other articles on Topics below. Simply put, an Condo & HOA Financial Statements is an official record that details all the financial activities of the community association. What is an Condo & HOA Financial Statement? We have years of experience working with thousands of residents across the United States. If you are having trouble preparing community financial statements, the professionals at CSM are standing by to answer all your questions. The frequency of preparation may vary depending on state laws, community bylaws, and the size of the association. Preparing detailed Financial Statements on a regular basis serves a multitude of purposes from providing insight for financial planning, promoting transparency between the board and residents, as well as being a requirement by law in some instances. Managing the finances of a community association is one of the most difficult, and most important, responsibilities of a board of directors. Guide to Condo & HOA Financial Statements for Budget Season.

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