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 a CPA is critical for an HOA.
The Significance of a CPA for an HOA
Since an HOA is a professional body, the board must prepare financial records and file tax returns. After all, the board must be accountable for the monies they collect in fees, fines, and other charges. Whether invested in a project or allocated to maintenance costs, the treasurer must produce financial records for transparency and accountability.
So, why do you need a CPA for HOA? Financial management can be complex for HOA boards with little or no accounting experience. The paperwork involved can be confusing, leading to errors and mismanagement of resources. Here’s where the services of a Certified Public Accountant (CPA) come into play.
A reliable CPA can help an HOA with the following services:
- Preparing accurate financial statements and reports
- Reviewing financial records
- Filing tax returns
- Auditing all financial accounts and records
- Tracking income and expenses
- Providing HOAs with guidance on legal compliance
- Preparing budgets
How to Find an Experienced CPA for HOA
Enlisting a reliable CPA can make a difference in preparing accurate financial and accounting records for an HOA. However, not all CPAs specialize in HOAs. Therefore, a thorough selection process is critical to finding the right one.
Here’s how to find a CPA for HOA:
1. Research Widely
Finding an experienced CPA requires intensive research. The quickest way to find a reliable CPA is through a local online search. Check customer reviews to gauge their reliability and know what to expect. You can also ask for referrals from other HOAs in your area.
2. Make Enquiries
Be sure to ask questions before entrusting any CPA firm. Inquire about their credentials, experience with HOA accounting, and whether they can accommodate your association in the first place. Gauge their understanding of the various HOA tax return forms and income exemptions.
Enlist a Credible CPA for Your HOA
Outsourcing HOA accounting services to a reliable HOA CPA Atlanta firm is critical to the smooth running of homeowners associations. Abel Accountants are here to help your HOA balance the books and meet your tax compliance requirements. Contact us today for a free community assessment and learn more about our services.