Divine Hoa Balance Sheet
The balance sheet is a recording of the monthly liabilities subtracted from the monthly assets of the association.
Hoa balance sheet. The balance sheet is like an accounting snapshot of the Associations financial status as of a certain date. If they are equal the finances are balanced. However new Board members often dont know what to look for when reviewing the Balance Sheet included in the financial packet they receive from their management company every month.
On the other hand you have the financial review which is a requirement for associations that have an income of 300 000 or more. Its made up of assets liabilities and equityfund balances. The idea behind your HOAs balance sheet is that it should always balance with no exceptions.
As the HOA settles its balances the association reduces its Accounts Payable and Cash balance. This comparison of the assets of the association minus the. The Balance Sheet will have an Accounts Payable liability section.
It tells where the association stands with their asset liability and reserves at a particular point in time. The Balance identifies the Associations Assets Liabilities and Equity. Community association solutions provides education and consulting as well for the hoa industry.
The balance sheet is one of several financial statements or reports that organizations use to assess their fiscal condition. Listed assets are things such as cash amounts owed liabilities remaining values on unused insurance etc. Assets Liabilities Equity.
It is a quick way of getting a picture of your associations overall financial strength. At the end of each fiscal year your HOA will be furnished with a few financial documents from your associations accountantforemost among them being the HOA balance sheet. If the community owes more money that it has and is able to collect it has negative equity.