BenA2 (Texas)
Posts: 1,273
Posts: 1,273
Posted:
Who does your books and monthly financial reports? Is it an administrative secretary, treasurer, or do you contract with a bookkeeper or CPA? Does the manager do the books, if you have one?
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Bookkeeper vs CPA
Started by BenA2 • 6 replies • 691 views
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TimB4 (Tennessee)
Posts: 21,061
Posts: 21,061
Posted:
Ben,
We are self managed (130 lots).
We previously hired a bookkeeper to collect the mail, keep the lot ledgers, make deposits and make reports to the treasurer.
As Treasurer, partially because I took a more active role and was almost duplicating the work, absobed those duties and currently collect the mail, maintain the ledgers, make deposits and make reports to the Board. I expect that next year (because I won't run again) the Association will once again hire a bookkeeper.
We hire a CPA to do financial reviews and audits.
NOTE: When I say we hire a bookkeeper that is not exactly correct. We hire a resident as an independent contractor to do bookkeeping (they may or may not have actual bookkeeping experience).
We are self managed (130 lots).
We previously hired a bookkeeper to collect the mail, keep the lot ledgers, make deposits and make reports to the treasurer.
As Treasurer, partially because I took a more active role and was almost duplicating the work, absobed those duties and currently collect the mail, maintain the ledgers, make deposits and make reports to the Board. I expect that next year (because I won't run again) the Association will once again hire a bookkeeper.
We hire a CPA to do financial reviews and audits.
NOTE: When I say we hire a bookkeeper that is not exactly correct. We hire a resident as an independent contractor to do bookkeeping (they may or may not have actual bookkeeping experience).
JohnC46 (South Carolina)
Posts: 14,265
Posts: 14,265
Posted:
Our MC handles it all. Dues collections, payments, monthly financial statements, etc. Some might say we put to much trust in them. While I do not disagree with this, we have several checks and balances in place:
1. Monthly financial review by the BOD. This is the real critical point.
2. Dues handled by a lock box bank and the BOD can stop all payments to the MC. Meaning the dues deposits will sit there until the BOD says otherwise. We pay dues quarterly so worst case an MC could best us out of 1/4 of our yearly dues. A loss we could afford. A loss we would not like, but one we could afford.
3. Reserves are not handled by the MC. The MC can only make deposits to, not withdraw from. Reserve account (different bank) handled by the BOD. MC gets monthly statement for the bank that holds our reserve for inclusion in their monthly financial reports. Takes two Officers signing to do any reserve fund transactions.
No system is full proof as cheaters cheat.
1. Monthly financial review by the BOD. This is the real critical point.
2. Dues handled by a lock box bank and the BOD can stop all payments to the MC. Meaning the dues deposits will sit there until the BOD says otherwise. We pay dues quarterly so worst case an MC could best us out of 1/4 of our yearly dues. A loss we could afford. A loss we would not like, but one we could afford.
3. Reserves are not handled by the MC. The MC can only make deposits to, not withdraw from. Reserve account (different bank) handled by the BOD. MC gets monthly statement for the bank that holds our reserve for inclusion in their monthly financial reports. Takes two Officers signing to do any reserve fund transactions.
No system is full proof as cheaters cheat.
DouglasK1 (Florida)
Posts: 2,046
Posts: 2,046
Posted:
We are 65 single family homes, about 20 years since turnover. The treasurer has always handled the books and we have never had an outside bookkeeper, accountant, etc. For four years, that was me, luckily it is someone else now.
Escaped former treasurer and director of a self managed association.
JohnC46 (South Carolina)
Posts: 14,265
Posts: 14,265
Posted:
Quote:
Posted By JohnC46 on 05/22/2018 6:55 PM
Our MC handles it all. Dues collections, payments, monthly financial statements, etc. Some might say we put to much trust in them. While I do not disagree with this, we have several checks and balances in place:
1. Monthly financial review by the BOD. This is the real critical point.
2. Dues handled by a lock box bank and the BOD can stop all payments to the MC. Meaning the dues deposits will sit there until the BOD says otherwise. We pay dues quarterly so worst case an MC could best us out of 1/4 of our yearly dues. A loss we could afford. A loss we would not like, but one we could afford.
3. Reserves are not handled by the MC. The MC can only make deposits to, not withdraw from. Reserve account (different bank) handled by the BOD. MC gets monthly statement for the bank that holds our reserve for inclusion in their monthly financial reports. Takes two Officers signing to do any reserve fund transactions.
No system is full proof as cheaters cheat.
Our MC handles it all. Dues collections, payments, monthly financial statements, etc. Some might say we put to much trust in them. While I do not disagree with this, we have several checks and balances in place:
1. Monthly financial review by the BOD. This is the real critical point.
2. Dues handled by a lock box bank and the BOD can stop all payments to the MC. Meaning the dues deposits will sit there until the BOD says otherwise. We pay dues quarterly so worst case an MC could best us out of 1/4 of our yearly dues. A loss we could afford. A loss we would not like, but one we could afford.
3. Reserves are not handled by the MC. The MC can only make deposits to, not withdraw from. Reserve account (different bank) handled by the BOD. MC gets monthly statement for the bank that holds our reserve for inclusion in their monthly financial reports. Takes two Officers signing to do any reserve fund transactions.
No system is full proof as cheaters cheat.
ADDITION
We are 112 standalone, private homes, $65K budget.
.
KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
Our system is almost exactly the same as JohnC's.
We're 200+ high rise condos and two large commercial "lots."
We're 200+ high rise condos and two large commercial "lots."
KellyM3 (North Carolina)
Posts: 2,239
Posts: 2,239
Posted:
236 properties.
Our management company handles collections and bookkeeping. We hire a CPA to conduct an annual financial audit.
Our management company handles collections and bookkeeping. We hire a CPA to conduct an annual financial audit.
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