Are you unable to understand your accounting figures? Do you have trouble in comprehending the financial reports? Maybe you find the software difficult to use, or perhaps accounting is something that is simply over your head. Whatever the case, fact is that you really should hire an accountant because they can help you out in so many ways. After all, you may not have any financial background, but they do, and thus can simplify finances for you.
Accountants Work With Both The Board Of Directors, And The Management Company
The primary duty of every accountant is to assess your financial situation and always keep it under control. Finances of every association can have significant variations depending on the nature of your property and the services that you avail from a management company.
Basically, the board is responsible for all the matters of an association, whereas the management company will maintain the property, both physically and financially. They will operate the annual budget and keep the books in record. So what does an accountant help you out with? An accountant will perform an individual audit of these books, and make sure everything is in order. They will also help you in preparing the budget, especially if you have a major repair coming up or have to tend to a huge replacement.
Accountants Will Notify You Of Your Financial Situation
As the end of the year draws near, an accountant will prepare a detailed financial report and present you with the results. If they have any suggestions to make, they will notify you at the board meetings. Other than the reports, many other documents have to be taken care of. An accountant does all of this, and helps you in understanding them thoroughly.
All along, an accountant also ensures that you have enough funds to last you for the year, and if this is not so, they can provide you with guidance so that you can arrange for them easily.
Accountants can help you out with taxes
Like every other organization out there, even homeowners associations have to pay taxes. You can file either as a corporation, or as an HOA. With the former, lower tax rates are applied, but the latter choice exempts several expenses. You will have to choose an option depending on your particular situation, and an accountant can advise you in this matter. They can also fill out your returns for you, and guide you about strategies that will help you in paying lower taxes. Consequently, you end up paying the least possible amount of taxes, which may not be so if you handle taxes on your own.
So hire an HOA accounting company and avail their services so that your finances are simplified. Or you can try using HOA management software. All along, please note that an accountant will provide you with effective advice, but in the end, it is still your call. Until you act on the suggestions provided by accountant(s), you will not benefit much from them.