Role of a Home Owners Association CPA in Miami and Dallas, TX

Posted by canadyandcanady on August 9th, 2022

Being a part of the homeowner's association can fulfill a deep desire in the mind of homeowners. The process of managing the day-to-day operations is not too easy and requires organizational skills! The members depend on the association to maintain the area perfectly and care for all ensuing problems. Maintenance of common areas is an added challenge that needs to be done meticulously or face irate homeowners clamoring to stop payment. Addressing everything without exception is undoubtedly not easy, but juggling the finances on all fronts seems impossible for individuals who are not money-wise. It is advisable to search for and appoint an experienced homeowners association CPA in Miami and Dallas, TX, who has been dealing with similar tasks for years.

Understanding that every successful HOA manager does not have to be a CPA is essential. Yet having the requisite qualifications help tremendously, especially when spending and collecting money as needed! A CPA hired to look after the accounting, and related money matters is not usually a member of the HOA. On the contrary, such specialized tasks are outsourced to a professional with the required certification. Some of the basic activities overseen by the CPA hired by the Home Owners Association include the following:

Income-Expense Ledgers- A daily record of the HOA's income and expenses is noted in the ledgers. The CPA will track it diligently to determine how the association deals with its expenses. This can be compared with the association's annual budget to determine whether the HOA is financially on the right track.

Receivable & Payables- One cannot plan without having painstakingly recorded data related to the receivables and payables. Sure, both the terms seem to be alike, but there is a difference here. The CPA will understand that the amount written down as payables refers to the outstanding money that needs to be paid to outside contractors or workers for services rendered. On the other hand, receivables indicate the money that is payable to the association. Balancing these books perfectly is a unique skill that a CPA must undertake. It enables the HOA to function properly when the accounts are on track.

Fees Collection- Most of the HOA's income comes from the fees that the association's residents pay regularly. While the CPA does not have to go door to door to collect the money, it is the onus of the accountant to check the received sum and the pending amounts each month. Most CPAs advise the association to use software for calculating the payments and processing the sum as needed.

Audits: The CA has the added responsibility to conduct annual audits to examine and control excessive expenditures and draw up a realistic budget for the next financial year.

A salaried individual does not have much trouble filing tax returns. However, business owners and people with multiple sources of income find the services of a top tax consultant in Houston, TX, indispensable.