Category: HOA
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HOA Balance Sheets: A Detailed Guide
Homeowners associations depend on financial statements to determine financial health. One of the most crucial ways to achieve this is through the balance sheet. A balance sheet provides a detailed view of an organization’s financial position. This may include equity, assets, and liabilities. By understanding the components and how to review your HOA’s balance sheet,…
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The Role of HOA Audits in Building Trust and Transparency
Trust and transparency are the foundations of many Homeowner’s Associations (HOA). These are vital traits for ensuring a successful and harmonious community. An HOA audit is vital in maintaining these values and contributes to financial integrity and accountability. Here’s why having an HOA audit matters. Ensuring Financial Accuracy and Integrity Audits in HOAs are important…
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Financial Review Vs Audit: What HOAs and Condominiums Need to Know
As the year ends, homeowners and condominium associations face the vital decision of conducting a financial review or an audit. While these terms are often used interchangeably, they have different purposes. Understanding the differences between a financial review and an audit is essential for HOA accounting and making an informed decision that benefits the community.…
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A Comprehensive Guide to the HOA Accounts Payable Report
Homeowners Associations (HOAs) are vital in managing and maintaining residential communities. The HOA accounts payable report is an essential tool that helps achieve this. What is the accounts payable report? It tracks an association’s debts and ensures smooth financial operations. Since its importance and function are only sometimes fully understood, consulting a professional for HOA…
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What Are the Signs Your HOA Needs Professional Financial Support?
Did you know that 66% of completed homes are part of Homeowners Associations (HOAs)? These organizations manage various aspects of residential communities, including financial management. While some HOAs handle finances smoothly, others encounter difficulties that show the need for professional financial support. Here are telltale signs that your condo association bookkeeping in Miami requires financial…
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Understanding Form 1120-H When Filing an HOA Tax Return
Understanding the various HOA tax return obligations is crucial for effective financial management as a homeowners association (HOA). While HOAs were initially required to file form 1120, the Tax Reform Act of 1976 introduced form 1120-H, simplifying the HOA tax process and providing significant tax benefits. Here’s what you need to know about Form 1120-H…
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Why Accrual Accounting Is the Best HOA Accounting Method for your HOA
HOA accounting is among the most complex tasks in HOA management. In any case, it involves tracking, recording, and reporting the financial activities of the community. Sound financial management is critical to ensuring the fiscal stability of the association. While HOA accounting can be daunting, understanding the basics of the different HOA accounting methods can…
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Understanding HOA Tax Returns
Many people assume that since homeowners associations (HOAs) are not-for-profit entities, they have no obligation to pay taxes. Nothing could be further from the truth. While HOAs are nonprofit organizations, the IRS requires them to pay taxes and file tax returns. Here is everything you need to know about HOA tax returns. What Is an…
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Nonprofit Accounting 101: How Many Steps Are in the Accounting Cycle?
Whether running a nonprofit or for-profit organization, understanding the accounting cycle is critical for any company. This holistic process comprises a sequence of steps that identify, track, analyze, and record the financial activities of your nonprofit. The goal of an accounting cycle is to protect your company’s assets and financial health. It also makes financial…
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How to Analyze HOA Financial Statements
Homeowners association boards comprise elected volunteers. Board members have various roles in the running of the community. However, some HOA board members might not have adequate expertise or experience to interpret or analyze complex HOA financial statements. Understanding the basics can help an HOA keep track of the association’s fiscal activities and ensure accountability. Whether…