Financial Management for Community and Condo Associations
At Compass Rose, we approach Community Association Financial Management in a consistent, accurate and timely manner. When you choose us as your Community Association Management company, you’re choosing financial stability and ensuring improvement to your future goals.
When it comes to managing finances and accounting, we understand that things can get a bit complicated. That’s why we have the right resources and trained professionals to take the burden of managing your community finances off of your hands. Our team is filled with expert financial accountants who have years of experience when it comes to Condo maintenance and HOA financial management.
What is Financial Management?
At its core, Financial Management is planning, organizing, directing and controlling the financial activities of an enterprise. In our case, we would be planning, organizing, directing and controlling the financial activities of your community or condo association.
We take a strategic financial management approach – that means we manage your finances in a way that sets you up for future, long-term success. Through this strategic financial management approach, we utilize the following techniques:
- Planning and Budgeting: We will prepare your annual budget and help ensure the budget is a realistic reflection of the board’s vision for the coming year. We will coordinate and facilitate your budget meeting.
- Managing and Assessing Risk: Our team looks ahead to potential threats that could affect the association’s finances. Based on what we find, we will create a plan to take the proper steps to monitor and prepare for these potential threats.
- Establishing Ongoing Procedures: Through this technique, we collect and analyze data based on current procedures that are in place. This way we can make future financial decisions that are consistent.
- Reserve funds: This technique is an important one. We map out and plan for any future renovations or expansions that the association may be looking to accomplish. By doing this, we are ensuring that we are prepared with the right amount of funds to meet the association’s expectations.
- Audits: We will assist the board to obtain quotes from qualified accounting professionals to perform a very careful and thorough examination of the HOA’s finances. This allows us to provide the association with the comfort that their finances are being handled with absolute integrity.
- Cost forecasting: Expect the unexpected is our motto. This technique helps us factor future expense increases into the budget and plan assessment increases to keep up with the costs.
- Accounts receivables: One of the most critical steps to financial management – ensuring that homeowners are paying their assessments on time by providing several different payment options.
- Manage Delinquencies: We assist the Board of Directors with coordinating collection activities under community operations as per the association’s collections policy.
- Financials: Our accounting team prepares and distributes monthly financial statements to the board which includes all details as required by Florida Statute and the Community documents.