Tuesday, 16 January 2018 09:19 pm
The fair and accurate reporting of the financial status and activities of the Homeowners association is the basis for accounting theory and practice. With the increasing size and complexity of Community Associations the responsibility placed on the Association's Treasurer and accountants for presenting fairly the results of the association's business operations is greater today than ever before. Therefore, financial statements and other reports prepared by the treasurer or accountants are vital to the successful working of the Community Association.
RECORDING FINANCIAL TRANSACTIONS
Accounting has frequently been called the "language of business." This designation is applied to accounting because it is the method of communicating business information. Like other languages, it is undergoing continuous change in an attempt to discover better means of communicating. The accounting cycle is a complete sequence of accounting procedures which are repeated in the same order during each accounting period.
The Accounting Period
The normal accounting period for Homeowner Associations is one year, beginning on any given day and ending 12 months later. A calendar year accounting period ends on December 31; all other 12-month accounting periods are known as fiscal years. Associations frequently adopt accounting periods as set by the developer.
If you would like to learn more or have any questions, please call the association at (850) 668-1173 or send an email to email@example.com.