ASSOCIATION ADVISORS ~ Accounting Control Practices & Procedures
Association Advisors produces timely financial reporting for its clients. By producing reports for both monthly and year-to-date cash flow, cash to budget variances, income register, expense register, journal entries, balance sheets, a complete transaction register, budget detail, aged accounts receivables as well as vendor 1099's, the firm administers all of its clients’ financial needs. In addition, Association Advisors provides comprehensive explanations of the materials used to compile reporting and recommend an aggressive collection policy to deal with maintenance arrears of owners.
Homeowners are automatically billed on the first of every month and late fees are applied to accounts that have missed their monthly payment. Homeowners who become delinquent more than two months are sent to the Association Attorney to start the collection process. Fees incurred in the collection process are passed on to the individual Homeowner. Monthly status reports are generated by Counsel and forwarded to the Board for further consideration.
Accounts Payable
Association’s bills are date stamped on the day they are received in our office. The bills are then reviewed by the property manager and correct balances are confirmed by the staff accountant. If an invoice is received with a prior balance, the vendor is called to verify that the last payment was received. No previous balances are paid on invoices unless the validity is confirmed. The service department will approve all work order related expenses and the manager will code the expenses to the proper line on the budget. It is prudent to have checks generated on a scheduled basis. This process is predetermined and outlined in our management contract. *Note: these are for standard operational expenses. In the event an exception arises, we will generate the check and bring it to a Board member for signature. Only Board members are authorized to sign checks. Management will never be an authorized signer on an account. Signed checks are brought back to the staff accountant for review and released in a timely manner.
Monthly Financials
All cash and investment accounts are reconciled monthly. Accounts receivable is reviewed and verified and schedules are prepared. Monthly prepaid adjustments and accrued expenses are recorded. We scan the monthly General Ledger for proper classifying of expenses. Once these practices are performed, the Financial Statements can begin to be prepared. Financial Statements include:
Balance Sheet
Income Statement
Budget Comparison with Monthly and Year-to-Date Comparisons
Accounts Receivable Schedule
Reserve Funding Schedule
Check Register
Expense Distribution Report
Bank Statements
Reconciliations
Copies of checks
Upon completion of the Financial Statements, the Controller reviews the statements for accuracy and overall balance. The Financial Statements are then distributed to the board, via email or at the next Board meeting, based on the contracted date of release.
Contact Us
Association Advisors
19 West Main Street Freehold, NJ 07728 help@askaa.com
Phone: (732) 294-8882
