MindyR (North Carolina)
Posts: 47
Posts: 47
Posted:
42 home community- yearly dues total 7560.00. Does anyone have a general idea what it would cost to have an outside agency do books and taxes??
Thanks!
Thanks!
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Taxes & Books
Started by MindyR • 20 replies • 1582 views
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RogerB (Colorado)
Posts: 5,067
Posts: 5,067
Posted:
Mindy, I presume by "do books" you mean to do all accounting including accounts receivable including delinquent accounts, accounts payable, banking, financial reports, and other related accounting duties. The cost would depend on how often payments are made - yearly, quarterly, or monthly. Yearly would be the least costly. Costs could start in the $4000 range depending on amount of service, competence, and location.
MindyR (North Carolina)
Posts: 47
Posts: 47
Posted:
Thanks for your response. In our small community and with the few bills we do have I feel like its not that much work for the tres. Our community is just 4 years old, and in those 4 years we have had the same tres. and at this current time that person handles everything to do with finances....even filing taxes. I just feel like not enough eyes are looking over the finances. With someone else doing the taxes, at least one other person would be overlooking the money coming in and going out. I know it is my right as a homeowner to be able to look at finances, but they keep everything so private, I feel like if I even ask to look at them I will be targeted.
BradD2 (Florida)
Posts: 418
Posts: 418
Posted:
Mindy, what state?
MindyR (North Carolina)
Posts: 47
Posts: 47
Posted:
NC
RogerB (Colorado)
Posts: 5,067
Posts: 5,067
Posted:
Quote:
Posted By MindyR on 05/30/2007 11:53 AM
In our small community and with the few bills we do have I feel like its not that much work for the tres.
In our small community and with the few bills we do have I feel like its not that much work for the tres.
Obviously you are not aware of the time requirements of doing proper accounting. FYI accounts payable are a minor part of accounting.
JM2 (Oregon)
Posts: 439
Posts: 439
Posted:
Hi Mindy:
You might want to check out your local chapter of CAI, look at their list of member-vendors, to find management companies as well as accountants. If you talk with a management company, you would be looking at a "Financials-only" contract, where they handle the financial aspects of the HOA and spit out a report monthly; may include helping with budgets; handle assessments, delinquencies, etc.; and handle transfers of property (usually there's a fee charged to the homeowner to pay for the transfers, and includes refinances as well).
There may be a bookkeeping service that handles HOAs that would cost less.
Regarding a look at the past performance of the treasurer, accountants do three levels of service: compilation, review, and audit. Audit is the most involved and therefore the most expensive.
Locally in Portland, OR, the going rate for the tax returns is about $175 - 225.
Look at what services you would want, and then ask for bids based on your specifications.
JPM
You might want to check out your local chapter of CAI, look at their list of member-vendors, to find management companies as well as accountants. If you talk with a management company, you would be looking at a "Financials-only" contract, where they handle the financial aspects of the HOA and spit out a report monthly; may include helping with budgets; handle assessments, delinquencies, etc.; and handle transfers of property (usually there's a fee charged to the homeowner to pay for the transfers, and includes refinances as well).
There may be a bookkeeping service that handles HOAs that would cost less.
Regarding a look at the past performance of the treasurer, accountants do three levels of service: compilation, review, and audit. Audit is the most involved and therefore the most expensive.
Locally in Portland, OR, the going rate for the tax returns is about $175 - 225.
Look at what services you would want, and then ask for bids based on your specifications.
JPM
MindyR (North Carolina)
Posts: 47
Posts: 47
Posted:
Quote:
Posted By RogerB on 05/30/2007 12:44 PM
Posted By MindyR on 05/30/2007 11:53 AM
In our small community and with the few bills we do have I feel like its not that much work for the tres.
In our small community and with the few bills we do have I feel like its not that much work for the tres.
Obviously you are not aware of the time requirements of doing proper accounting. FYI accounts payable are a minor part of accounting.
The key words in your statement being, "proper accounting." There is nothing proper about they way our HOA is operating.
MindyR (North Carolina)
Posts: 47
Posts: 47
Posted:
JPM- Thank you for your informative comment. You've pointed me in the right direction.
GloriaM (North Carolina)
Posts: 829
Posts: 829
Posted:
Mindy:
I am in NC and have available full service management or just bookkeeping and tax filing services. Yoou may call me any time to discuss. My telephone number is below my name. Hope to speak with you soon.
I am in NC and have available full service management or just bookkeeping and tax filing services. Yoou may call me any time to discuss. My telephone number is below my name. Hope to speak with you soon.
MindyR (North Carolina)
Posts: 47
Posts: 47
Posted:
Gloria...thank you, thank you, thank you! I checked out your website and you are just one exit up from us. We are holding our annual meeting this Sunday, and if I can gather enough information and gain some support on the subject I'll be call you.
Thanks again!
Thanks again!
TomK2 (Ohio)
Posts: 39
Posts: 39
Posted:
MindyR:
The best thing you can do is to have your "books"audited by a CPA at year end. That keeps everbody honest and the owners happy. Yes it may cost a few hundred bucks but it will be worth it. I do all the accounting here and the CPA checks it every month. Keep it simple Two signers on checks and no checks written without an invoice. No work done on the complex with out a numbered work order signed by the President and dated when board authorized the work. Vendor must bill using the work order number. Everything open and above board.
The best thing you can do is to have your "books"audited by a CPA at year end. That keeps everbody honest and the owners happy. Yes it may cost a few hundred bucks but it will be worth it. I do all the accounting here and the CPA checks it every month. Keep it simple Two signers on checks and no checks written without an invoice. No work done on the complex with out a numbered work order signed by the President and dated when board authorized the work. Vendor must bill using the work order number. Everything open and above board.
BradD2 (Florida)
Posts: 418
Posts: 418
Posted:
Tom, that sounds good when you say it fast but do you think it wise to spend $2,500 to check if there was a problem or mistake with the $7,560?
MindyR (North Carolina)
Posts: 47
Posts: 47
Posted:
That is a great point Brad. That is kind of where I am with all this. I would like to have a CPA do an audit. But the quesiton is can we afford it? Maybe I can suggest auditing every 5 years? The expense wouldn't be so bad if it was done every 5 years....is it even worth it?
RogerB (Colorado)
Posts: 5,067
Posts: 5,067
Posted:
Mindy, in my opinion your HOA's income does not warrant an audit. But I would recommend a financial review every couple years and whenever the Treasurer is changed.
GloriaM (North Carolina)
Posts: 829
Posts: 829
Posted:
Mindy:
I look forward to speaking with you. We are exit 36 off of 77. We are located on Hwy 150. We could assist you with a CPA, audit or review. Hope to hear from you soon.
I look forward to speaking with you. We are exit 36 off of 77. We are located on Hwy 150. We could assist you with a CPA, audit or review. Hope to hear from you soon.
GloriaM (North Carolina)
Posts: 829
Posts: 829
Posted:
Mindy:
How did your meeting go Sunday? I was wondering if you would like to discuss a possible working relationship?
How did your meeting go Sunday? I was wondering if you would like to discuss a possible working relationship?
MindyR (North Carolina)
Posts: 47
Posts: 47
Posted:
Our meeting was cancelled....rescheduled for next Sunday.
KevinK5 (California)
Posts: 64
Posts: 64
Posted:
Hello Mindy,
We only have 51 homes and a small budget. Our HOA bylaws required annual audits by a CPA, but we got the homeowners to vote and change the bylaws so an "audit committe" could do an annual audit. That seems to be working very well and saves us 10% of our budget.
Kevin
We only have 51 homes and a small budget. Our HOA bylaws required annual audits by a CPA, but we got the homeowners to vote and change the bylaws so an "audit committe" could do an annual audit. That seems to be working very well and saves us 10% of our budget.
Kevin
MindyR (North Carolina)
Posts: 47
Posts: 47
Posted:
Thanks Kevin, that is a great idea. We are also a smaller development with a small budget. The only problem is that there is nothing in our cc&r's about audits. And I know as soon as I mention something the claws will come out from our tres. Any suggestion on how to approach this situation?
BradD2 (Florida)
Posts: 418
Posts: 418
Posted:
Mindy suggest that to give the homeowners a sense of comfort that a review of the books be performed every year.
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