Many
people forget that in Florida, a Condominium, or Homeowners Association, is a corporation. There are two types
of corporations, the For Profit and the Non-Profit. The Associations fall into the latter grouping.
Many
Associations manage hundred, even millions of dollars. However, independently of the amount of income involved, the financial
affairs of the community must be administered professionally and with a clear understanding of what is at stake.
Financial
Management is a journey, not a destination. It is more than preparing a Balance Sheet and a Profit & Loss Statement for
the Board of Directors.
It
requires specialized Accounting knowledge and a lot of dedication. The Reports are the end product of the accounting cycle
and they must reflect the real situation of the corporation.
Recording
the transactions in the General Ledger entails knowing how to do it properly, with the corresponding support and schedules,
otherwise the accounts balances, which must be accurate and stand for the decisions undertaken by the Board of Directors,
would hold to the accounting premise that imply that “garbage in, garbage out”. This must never be forgotten.
It
is more than just buying a software and start pumping numbers following the instructions of the manufacturer.
Our
Finance Department is under the direction of a Master in Business Administration and Accounting, with a long experience working
for public companies. The process implemented by our Accounting Department includes four basic steps: Analysis, Journalizing
with Supports, Roll forwarding Schedules and Reporting.
In
addition it is mandatory to maintain Annotated Budgeting Variances, an important step used to keep the expenses, and the Cash
Flow, from going overboard, as well as Cash Management, which is particularly important to maintain the vendors debts well
served.
In
addition, Gold Property Management offers a Free Seminar for Board of Directors covering the following topics:
a) Importance of Knowing
What Is In the Balance Sheet
b) What is a Roll forward
Schedule
c) Understanding the Profit
& Loss Statement
d) Constructing a Budget: The Assumptions
e) Cash Controls
