From attorneys to contractors, every building has a list of various professionals to work with to keep things running smoothly. One of the most important of these professionals is the building’s accountant. One wrong calculation or missing component in a co-op or condo community’s finances can lead to angry residents, cash flow problems, or even lawsuits. As a manager, it’s important to know how to find a competent person to crunch those numbers, what expectations you can hold for him or her, and how to get the most of your relationship.
Why Have An Accountant?
The short answer? Because it’s legally required.
“Ninety-five percent [of cooperatives and condominiums] are required by law to have an audit statement,” says Mindy Eisenberg Stark, CPA, CFE.
Rick Montanye, CPA, who is with the accounting firm of Marin & Montanye LLP in Uniondale, says that the audits are used to compose tax statements that are sent to shareholders so that they know where their money is going. Additionally, accountants file corporate tax returns on behalf of cooperative corporations.
According to Stark, smaller buildings sometimes don’t have a legal obligation to get audited, so they do their own numbers.