Accounting in itself is a complex procedure, even if you are doing it on an individual level. When it comes to managing the finances of a homeowners’ association, it is important to have someone professional on the team. If you are a self-managed HOA in Alabama, it might be time to hire an HOA accountant.
An HOA accountant may seem like an unnecessary cost initially, but it will save you lots of money in the long run. While board members are dedicated individuals who do the best work, they may not have the knowledge required to handle HOA finances. An Alabama HOA CPA can make sure your community runs smoothly.
What does a HOA CPA do?
A CPA provides three services for an HOA. They can help with financial monitoring, accounting knowledge, tax preparation, bookkeeping, etc. The three main services are listed below:
- Compilation: This is the most basic service provided by the CPA. It means assisting management in compiling and presenting their financial records and statements. However, they do not analyze financial statements and give opinions for financial accuracy. They only help with the compilation of reports and financial statements to represent the finance management.
- Review: Reviewing financial statements is more thorough than compiling them. It involves talking to the client and analyzing the financial information provided. However, it does not go as deep as examining accounting records and offers a lower level of assurance about the accuracy of the finances.
- Audit: The highest form of assurance from a CPA is an HOA audit. They perform testing and proper analysis to ensure that all the financial statements are correct and there are no mistakes. They review the HOA’s policy, structure, and records to ensure everything is carried out well.
Benefits of hiring an HOA accountant.
The benefits of hiring an HOA accountant are as follows:
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- Clean and accurate bookkeeping: An HOA ensures that your records are clean and accurate. It tracks all your financial management and makes sure everything is recorded. If you do not have a CPA on your side, you might face difficulty in dealing with income statements, balance sheets, cash ledgers, etc. The accountant will manage all the finance-related matters, giving the board more time to focus on other prevalent issues.
- Consistent and complete financial reports: It is the accountant’s duty to keep your financial situation under control. Based on bookkeeping, an HOA accountant will create financial reports. If homeowners have some queries regarding financials, an accountant can help answer them.
- Help you with taxes: One of the biggest advantages of hiring an HCA is that they can help you with tax-related matters. They can make strategies to lower your taxes and offer advice to ensure you are in accordance with all the tax laws.
Your community’s smooth functioning may be compromised due to your inexperience in finances. Do not let that happen. Hire an HOA CPA today!
