6 Signs Your Condominium Needs Professional Financial Management Support

A condominium corporation board of directors has several duties, including keeping the community’s finances in order. This means maintaining the condominium’s budget and accounting records, collecting assessments, and using funds wisely for community expenses. However, staying on top of the condominiums financial health can sometimes be overwhelming for board members. That’s why support from a financial professional might be beneficial.

If your condominium’s accounting duties are challenging for your board, you likely need professional financial management support. Here are six signs that you do.

Reasons to Consider a Condominium Financial Management Professional

For many condominium boards, hiring a financial management service provider helps balance responsibilities and busy schedules and streamline the community’s overall operations. Here are some reasons your board may want to consider outsourcing your financial duties to a professional.

1. You’re not a financial expert.

While some board members may have accounting knowledge, it might not be the professional experience needed to handle complicated taxes, balance statements, and budgets specific to condominium corporations. Working with a skilled financial service provider who specializes in condominiums can ultimately help you avoid common accounting mistakes.

2. You employ manual bookkeeping methods.

Making accounting errors is too easy if your board still uses manual bookkeeping techniques. Even if you’re careful, one small oversight can lead to major issues down the road. Manual methods are also time-consuming and require a lot of updating that can take your focus away from other community needs.

When you hire a management company with an expert accounting staff, you have access to the latest financial tools, such as a digital financial management system to make bookkeeping simpler and more secure.

3. You have to rush to meet deadlines.

Condominium boards and budgeting committees often find themselves rushing through the budgeting process to meet deadlines and keep operations moving forward. However, speeding through complicated numbers can lead to inaccuracies and unbalanced budgets that hurt the community in the long run. With a professional management team to oversee the budget, support committee efforts, and manage some of the board’s financial responsibilities, you’re more likely to have an accurate representation of funds and efficient processes that allow you to meet critical deadlines.

4. You’re making costly recordkeeping mistakes.

Handling your condominium’s finances in-house may not be the most cost-effective way to keep your records in order. Financial recordkeeping mistakes can end up costing residents more than anticipated if they’re not caught and remedied quickly.

A financial management professional has the expertise to keep accurate records and avoid errors that can be overlooked by an untrained eye, including:

·    Tax return mistakes

·    Insufficient funds in your reserves

·    Inaccurate balance sheets

·    Overdue bills or expenses

·    Delinquent assessments

5. You’re spending an excessive amount of time on the budget.

Budgeting is one of the most challenging tasks for condominium boards, which is why it can take a long time to complete. However, spending a disproportionate amount of time on the budget takes away from other essential responsibilities. 

6. You’re not regularly collecting late fees and assessments.

If you find it difficult to stay on top of condominium assessments and late fees from homeowners, you’re missing out on crucial income for your community. Working with a community manager and a financial service provider means you have reliable support to collect regular dues, assessments, and late fees that keep the community running at its best.