Homeowners Associations (HOAs) often find themselves in a complex financial web. While board members oversee the overall operations, they usually lack the financial acumen to manage the intricate details. This is where a Certified Public Accountant (CPA) comes into play. But why do you need a CPA for an HOA? Let’s explore this in depth.
The Board’s Responsibility
The board of an HOA holds the ultimate responsibility for all matters, including financial ones. They hire service providers and vendors to assist with various tasks. However, most board members lack financial expertise. Therefore, understanding the role of an HOA CPA becomes crucial. These professionals bring in the necessary financial skills to ensure that the HOA runs smoothly.
What Does the Management Company Do?
The HOA management company takes care of the physical property and handles financial matters like invoicing homeowners, collecting HOA fees, and preparing the annual budget. If the HOA is self-managed, the board’s treasurer takes on these responsibilities. In either case, the use of financial software is essential for record-keeping.
The CPA’s Role
How can an HOA accountant help your association? A CPA reviews the financial records maintained by the property manager and takes responsibility for preparing both the tax documents and financial reports for the HOA. They offer three types of reports:
- Compilation: A basic review of the HOA’s financials to check for obvious errors.
- Review: A more in-depth analysis that comes with limited assurances.
- Full Audit: A comprehensive report that includes verification and substantiation processes.
Read more here for insights on understanding your association’s financials.
Legal complexities frequently surface in the realm of community management. Having a team of seasoned homeowners association attorneys proves invaluable. They can guide you through a myriad of challenges, such as unit owner disputes, assessment collections, and disagreements with local government. Additionally, they can help interpret bylaws, assist in litigation, and ensure compliance with state and federal regulations. Their expertise can be a safeguard against costly legal missteps.
Your Next Steps: Engage with Ardent Residential
So, what should be your next move? If you’re in Georgia, consider engaging with Ardent Residential, a property management agency in Sandy Springs. We offer customized community portals and amenity calendars, among other features, to streamline your HOA management. Don’t leave your HOA’s financial health to chance. Engage a CPA to ensure transparency, compliance, and peace of mind.