Bookkeeping Question

Started by SerdarT • 8 replies • 1108 views

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SerdarT (Illinois)
Posts: 3

Posted:

We live in a brand new building. First resident moved in December 2016 and the developer turn over the building to the home owners at the end of June 2017. We officially established the HOA on July 12th. My question is should we go back to December 2016 to start our books or starting from July 12 will be fine? Thank you for the responses in advance

MelissaP1 (Alabama)
Posts: 13,836

Posted:

I would go to when your HOA was founded by the owners in July. You could go back further if you wanted but not much need. You all did not own the HOA then.

Former HOA President

GenoS (Florida)
Posts: 4,276

Posted:

I agree with Melissa (again lol). Pick what works for you and make a note or mention it in the minutes that "as of such and such a day" we are establishing our record keeping. Maybe take into consideration when you plan to have your fiscal year. It's only natural that the 1st year is a little unusual.

TimB4 (Tennessee)
Posts: 21,062

Posted:

If assessments were being paid by the one owner in December, you start there.

If assessments were not being paid until now, you start now.

JeffT2 (Iowa)
Posts: 880

Posted:

Is your building a condominium?

SerdarT (Illinois)
Posts: 3

Posted:

No one has paid any assessments yet. First assessments are due September 1st, but we will collect all past dues starting from move in dates for each unit.

SerdarT (Illinois)
Posts: 3

Posted:

Yes, it is a condominium

JeffT2 (Iowa)
Posts: 880

Posted:

You need to go back as far as possible, even before December 2016. The association was established by the developer at the time the condo declaration was recorded and before the first unit was sold. You should get all of the records and bank statements from the developer for all those times.

JanetB2 (Colorado)
Posts: 4,219

Posted:

Quote:

Posted By SerdarT on 08/10/2017 6:13 PM
No one has paid any assessments yet. First assessments are due September 1st, but we will collect all past dues starting from move in dates for each unit.

Past dues from move in dates??? Are you trying to tell me that if I purchased a home in your HOA maybe as example 5 years ago and the developer did not charge me an assessment (potentially because he was responsible for maintaining during the developer control period) that you can back date and try to collect from me? LOL ... I suggest you take a look at your states financial collection laws.

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