Although the consensus of community associations are non-profit entities, financial transactions are still happening all the time. Therefore, the utilization of professional accountants is undeniable. Along with carrying out the financial transactions according to law, the services offered by a CPA help the association management to carry out the audit and tax requirements with ease. Professional accountants have become the name of the association game, and whether you are a profit or a non-profit entity, you have to have the services of accounting experts which can help you stay on the right track.
Audits and Reviews
The most common services the association requires in terms of financial matters are preparation of the financial statement in accordance with the legal procedures, and the audit of all the financial transactions. Audit does not offer cent percent security against fraud, but still, it can be an accurate measure of coming across the authenticity and legality of all the financial transactions for a particular period. Only a professional accountant can apply the legal and financial rules and guidelines for reviewing and auditing the transactions. The clients get interested in funding the community only when the financial statements are provided, and if the association has the services of an accounting professional such as a CPA, then that community can enjoy an obvious advantage over the others.
For example, take a look at the following reviews:
Not only the commercial entities require the services of tax analysts, rather the community associations also need to have the professional services which can offer the association helpful and meaningful advice as to what tax type to go with. This cannot be done without proper knowledge of the non-profit tax types and related matters. Considering the working of the community association, an accountant can offer priceless advice as to whether to go with the Form 1120 or the Form 1120-H. There is no clear-cut idea as to tax working for a community association, rather several aspects are considered before finalizing the decision. Along with that, filing a tax return can become a walk in the park, provided the association has the services of accounting experts.
Hiring an Accountant for Community Associations
When it comes to having the services of professional accountants, the association management needs to hit the bull’s eye by going with the services of professionals having ample market experience up their sleeves. Specializing in association taxation can offer the management a peace of mind, as corporate financial experts would require time to settle into the groove. Therefore, whenever you intend to hire a professional, ensure you keep the mentioned factors in mind all the time.
As mentioned above, a community association is a non-profit entity, yet you cannot take for granted the benefits a CPA can offer. Listed above are some of the primary financial and taxation requirements, but the associations need many complex tasks to be done by the professionals. The community management need to have a clear idea of such requirements and should go with the professional catering to those needs in a serene manner.