GAAP (generally accepted accounting principles)

Started by JimR24 • 4 replies • 1409 views

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JimR24 (Texas)
Posts: 399

Posted:

Hi everybody - i have recently learned that our Texas State Condo Act requires all condos adhere to "generally accepted accounting principles" as the standard for keeping our books. As far as i know - and from my research on this subject, our books are not in adherence with GAAP and we are now realizing that we must proceed toward this standard. I am the Treasurer of our Association and we have a bookkeeper (who also functions as property management help); however, neither of us are trained accountants.

I was wondering if any of you have encountered this situation in the past and how you handled it. As far as you know, do the Association(s) with whom you work have a GAAP requirement? What do you think?

Thanks!

oljim, in texas

Lovin' life with my honey!
and, President of HOA in Texas

SheliaH (Indiana)
Posts: 6,964

Posted:

That's a mouthful and probably too big a subject to discuss here. You may want to talk to an accountant who can help you review your documents to see what needs to be fixed. This is probably too big a subject to discuss here. Here's a link you can start with to get some background on what GAAP standards are - http://www.accounting.com/resources/gaap/

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

JimR24 (Texas)
Posts: 399

Posted:

Quote:

Posted By SheliaH on 09/21/2016 4:24 AM
That's a mouthful and probably too big a subject to discuss here. You may want to talk to an accountant who can help you review your documents to see what needs to be fixed. This is probably too big a subject to discuss here. Here's a link you can start with to get some background on what GAAP standards are - http://www.accounting.com/resources/gaap/

Excellent resource Shelia - good read. Very informative.

What i am wondering if any of you are members of Associations (or if you are managing Associations) which have this requirement. Would be interesting to find out if this Texas condo requirement is in the minority....or if most all Associations adhere to the generally accepted accounting principles. What do you think?

And yes, we are in contact with a CPA now - who may be helping us with this.

Thanks!

oljim, in texas

Lovin' life with my honey!
and, President of HOA in Texas

TimB4 (Tennessee)
Posts: 21,061

Posted:

Jim,

For the most part, if you keep your individual lot accounts in the form of a ledger and your expenses in the form of a check book, you would typically meet GAAP. I don't know how often your books are reviewed/audited, but if a CPA does the review/audit, they will guide you.

If you are using accounting software (quicken, etc.) you are adhering to GAAP.
Ledgers are available from any office supply store or simply make them up in excel.

I don't have time at the moment, but I'll try and upload a clean copy of our excel spreadsheets if you desire.

Tim

JimR24 (Texas)
Posts: 399

Posted:

Thanks Tim, for your response and all your help!

oljim, in texas

Lovin' life with my honey!
and, President of HOA in Texas

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