What Does an HOA Certified Public Accountant (CPA) Do?

If you are new to living in an HOA, or new to being on an HOA board, you may not realize just how closely many boards work with certified public accountants, or CPAs. However, since tracking money and spending it wisely are two key aspects of what an HOA board does, it makes sense.

Here’s what you can expect from a CPA and what one might have to offer your association or board.

Meticulous Bookkeeping

Accountants do many things, but one of their main tasks is to keep track of what money comes in and what money goes out. In an HOA, where you can have a variety of people spending money on legitimate association business, it makes sense to have a single person whose job it is to make sure these expenditures get tracked properly.

Even if you use software to track money, having an accountant do these tasks means that you can be sure the software is being used properly.

Thorough Internal Reviews and Compilations Every Year

Every association needs to have a variety of financial assessments done every year, though the specific ones and the specific timing will be outlined in your particular set of governing documents. While it’s best to bring in an outside accountant when you need a full audit, your regular CPA can handle compilations and reviews.

Compilations occur when all relevant financial documents are put together and presented at once. Reviews offer a bit more insight into whether money was spent properly, while an audit tracks every transaction to ensure accuracy.

Exhaustive Reports

Every association has an obligation to present regular financial reports to both the HOA board members and to the community at large. An accountant will know how to prepare these and can also help people, especially board members, to learn how to read and interpret them accurately.

Tax Help

Filing taxes is never fun, but an accountant can make the process easier for an HOA. They make sure you file the right forms at the right time, and they often have all the numbers you need already prepared, so they don’t have to calculate anything last-minute.

If you have a separate tax prep person, they can work directly with the accountant to make sure everything you file is accurate.

Reserve Study Assistance

Every so often, as outlined in your governing documents, your association will need to complete a reserve study. This means making sure that it has enough money set aside for future repairs or potential emergency costs. It should be performed by an outside group.

Your accountant can help you select reliable people to perform the reserve study, then can help them access the information they need to complete their work. Having an accountant should make the process more efficient so the board can get the answers they need faster.

If you’re looking for a reliable HOA accountant, contact us at AMI. We’ll help you get the rental management services in Sarasota, Bradenton, Venice, or Longboat Key you need!

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