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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…

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…

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…

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…

Homeowners associations are nonprofits, meaning they are probably exempt from paying taxes. However, there are different categories of nonprofits, with HOAs classified as common interest realty associations (CIRA). Under federal law, CIRAs must file tax returns. So, why do homeowners associations have to file tax returns, yet they are nonprofit organizations? Let’s find out. Why…

While HOAs are nonprofit organizations, the IRS regards them as a corporation. In any case, HOAs collect various fees from homeowners to cover repair and maintenance costs. For this reason, HOAs must file tax returns annually on these dues. The good news is that some HOA fees might be eligible for tax deductions, lowering your…

A homeowners association (HOA) comprises a board of directors that enforces community rules, maintains common areas, mediates between members, and manages public resources. It also collects monthly or annual fees from residents and allocates funds to various projects. This point brings us to the question: Why do you need a CPA? This guide explains why…

Homeowners associations (HOAs) are nonprofit organizations, meaning they operate with no intention of generating a profit. The funds collected by the association cater to the welfare of the community. Given the financial complexities involved with nonprofits, many HOAs turn to bookkeepers and accountants to handle their finances. This guide explains who to hire between nonprofit…

An HOA cannot operate without adequate funds. It requires finances for repairs, renovations, upgrades, routine maintenance, long-term projects, and daily expenses. Misappropriation of finances and resources can impede an HOA from achieving its goals. As such, checking the financial health of an HOA is essential for all community members. This guide explains how to check…

HOA audits are critical to ensuring transparent financial reporting. They can be internal or external, depending on the size of the HOA and relevant state laws. So, how often should an HOA be audited? This guide explains everything you need to know about HOA audits and why it is essential. The Importance of HOA Audits…