Year End Housekeeping Keeping the Books in Order

 Organizing and keeping a co-op or condo’s books and other records is, on the surface, not that different than keeping a  budget for one’s home.  

 But there are many important differences—filing deadlines, tax requirements, reports, avoiding costly penalties and more.  As difficult as balancing the numbers for your apartment may be, doing the same  thing for, say, 60 or 100 housing units is infinitely more difficult. The fact  that there are detailed rules and laws governing condo and co-op financial  records makes it even more important to “take care of business,” as it were.  

 In Your Corner

 While you don’t have to be an accountant or another financial professional to understand all  of the basics, it’s a good idea to have a financial professional in your corner, giving you  advice. That doesn’t mean, however, that boards and managers shouldn’t have a working knowledge of the basics themselves. With this in mind, we asked  several certified public accountants how boards and managers can get their  financial house in order and keep it that way.  

 As we’ve mentioned, there are several basics that any board member should know about  his or her building. Board members should have a working knowledge of both the  general operating budget and the capital budget, the source of funding for  capital projects, and the amount of the building’s reserve fund.  

 “A well-done management report and financial statement will give the board member  information about the mortgage on the property, accounts payable, accounts  receivable and cash positions,” says Mindy Eisenberg Stark, CPA, whose office is in Scarsdale.  

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Comments

  • Nothing. The auditor doesn't give a toss what the ofifce looks like. And unless you're involved in the audit yourself as a principal of the business you should stay out of the way. If your father is a CPA (or has retained one) he needs no help or tips from you. If the auditor thinks you're pulling a fast one in an attempt to influence the outcome it will only make things worse and may even open you to criminal prosecution.I know that you're concerned about this, but the best thing you can do is stay out of the way and leave it to the professionals.