Never? How important is it to have astute financial reports? It’s not just important these days. It’s critical.
The Association industry has long been known for poor accounting practices. If you suspect or actually experience this low-level cash basis practice, you will be thrilled with Beacon Management Services.
When cash flows were predictable, positive cash basis accounting was manageable. But the economy has put a microscope on financial reports and most don’t pass muster. Managing a property correctly includes having GAAP (Generally Accepted Accounting Principles) accounting. Accrual accounting. Without this method – a client, whether they admit it or not, is operating somewhat in the dark and certainly without vision or all the information necessary for good financial decisions.
Beacon does all the general financial & accounting any property needs such as coupons, collections, lockbox, reports, etc. Almost any management company can do these simple tasks.
Our financial reports, however, are characterized by:
- Accrual accounting is overseen by our CFO, who is a CPA
- Sub schedules for reserves
- Each report contains a one-page overview with Highlights and Comments, explaining the key changes from the last report and recommendations for future financial decisions
- Balance sheet with operating and reserve components details
- Cash flow forecasting
- Bank loans properly expressed
- Monthly aged receivables and bad debt management
- Custom reporting to meet the unique needs of the property
- Consulting with our CFO and CEO on all financial matters is included
Here are the Fundamentals That we do Every Day:
Internal controls are of extreme importance as they relate to protecting association funds. Accordingly, we employ measures to oversee General Ledger, Accounts Payable, Accounts Receivable, and Estoppel/PUD. In addition, our localized accounting department allows for easy access to information and personal response to your questions. Our Chief Financial Officer is unique in that he periodically attends board meetings and is involved in the ongoing dialogue with the board to accurately and properly reflect the financial condition for your community. The board treasurer will, in fact, have the benefit of a trusted advisor in Beacon.
Total Accounting and Financial Solutions:
- Keep a separate set of books of account for HOA, including but not limited to general ledger, journals and paid bills file.
- Send monthly financial management report and disbursements journal to Board. Monthly aged accounts receivable report to Treasurer. Monthly: bank reconciliation, balance accounts receivables. Quarterly: post interest and reconcile Reserve accounts.
- Send a bill with a return envelope to all owners each month for maintenance assessment. Receive such payments and deposit directly into HOA separate Operating account at the bank, keeping records thereof.
- Delinquent payment follow-up: reminder notice on the bill at 30 and 60 days, pre-lien letter at 60 days, a lien filed at Board instruction, the release of lien when applicable. Post lien collection options and costs.
- Pay all bills out of HOA Operating account.
- “Red Flag” reports sent to Board if applicable on cash-flow and/or Reserve deposit problems.
- Coordinate with HOA accountant for the annual audit and tax returns. Accountant’s cost borne by HOA.
- Send annually FYE data requirements list to Board and mandated packet of info to owners.
- Deposit budgeted Reserves from HOA Operating account into HOA Reserve account(s) monthly, if funds are available. Tracking log for missed reserve deposits.
- Coordinate on lender foreclosures and owner bankruptcies if applicable.
- Maintain a current list of unit owners.
- Provide account history to the individual owner when requested.
- Deal with individual homeowners on their accounts and coordinate with Board if necessary.? Coordinate with escrow companies and lenders for resales and refinances cost form by owner, not HOA.
Don’t leave your assets to chance. We don’t.