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Author: admin
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When to Conduct a Forensic Audit of an HOA
A homeowners association is a legal entity that manages a community’s operations and resources. It comprises elected board members who are typically volunteers selected from the community. They play part-time roles and do not derive a salary for their work. That said, electing board members with limited experience and expertise in community development and financial…
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How to Handle Unfiled HOA Tax Returns
The IRS classified homeowners associations as corporations. For this reason, HOAs must file tax returns at the end of their financial year unless they have a tax exemption status. However, filing tax returns can be complex and overwhelming, even for small HOA communities. Many associations owe the IRS unpaid taxes because of unfiled HOA tax…
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Quick Guide to Florida HOA Audit Requirements
Proper financial management is critical to the success of a homeowners association. However, many HOAs rely on volunteers rather than experts to oversee day-to-day operations. For this reason, financial irregularities might go unnoticed. Conducting an HOA audit can help detect fraud and discrepancies in financial reporting and improve transparency. It allows the association to strengthen…
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What Is the Difference Between Form 1120-H and 1120?
Homeowners associations file annual tax returns like any other registered corporation. The only difference is that HOAs have distinct taxation laws with different rates. When filing tax returns, your association can select from two filing methods—Form 1120-H or Form 1120. Interestingly, an HOA can switch from one filing option to another each financial year. Each…
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Top Reasons to Form an Audit Committee for Your Nonprofit
Financial reporting can be a massive challenge for most nonprofit organizations. After all, most nonprofit boards comprise volunteers and contractual employees with little to no experience in financial management. Setting up an audit committee composed of financial experts will help ensure financial transparency and accountability in your organization. This post explains why your nonprofit board…
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Top Reasons to Form an Audit Committee for Your Nonprofit
Homeowners associations (HOAs) are non-profit organizations. However, being a non-profit organization does not make a homeowners association tax-exempt. Under federal tax laws, HOAs must file tax returns annually as any other registered corporation would. HOAs collect fees from community members and follow a business-like structure. However, there are various circumstances in which an HOA might…
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The Top 5 Bookkeeping Benefits for HOAs
Homeowners associations process a lot of transactions in their day-to-day operations. They collect membership fees, dues, and HOA assessments. They also pay vendors and service providers for various services to improve and maintain community properties. The HOA’s primary role is to manage and oversee community resources. They must record each transaction to minimize errors, prevent…
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HOA Capital Contribution Fees: What Are They?
Buying a home in an HOA community comes with numerous benefits. However, new homeowners must comply with various fees and financial obligations at closing, including paying a capital contribution for HOA. This guide explains the HOA capital contribution fee and its significance to the community. HOA Capital Contribution Explained All home sales have closing costs…
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How To Find a Professional Bookkeeper for Your Small Business
Bookkeeping is an integral part of sound financial management. It paints a clear picture of your organization’s current financial status. Since running a business has numerous complexities, many organizations seek professional bookkeeping services. This guide explains how to find a bookkeeper for your small business. Who Is a Bookkeeper? A bookkeeper is a professional responsible…
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What Is the Difference Between HOA Assessments and Dues?
From manicured lawns to well-maintained amenities, residing in a HOA community can be a fulfilling experience. However, this residential experience comes at a cost. HOA residents must pay monthly or annual fees for regular maintenance and repair costs. These charges are numerous, and understanding them can be complicated for homeowners and board members. This guide…