Why condo books are harder than they look

A condo association owns and insures the building itself, not just a pool and some landscaping. That puts more money, and more ways to get it wrong, through the books.

• The master insurance policy: often the largest bill of the year. It should be spread across the policy months as a prepaid expense, not dumped into the month it was paid.
• Shared utilities: water, sewer, trash and sometimes heat are billed to the association and need to land in the right budget lines.
• Reserves for big building parts: roofs, siding, boilers, elevators and decks. Reserve money stays in its own fund and its own bank account, with every transfer documented.
• Special assessments: billed, tracked and reported separately from regular dues, so owners can see what was collected and what it paid for.
• Insurance deductibles and repairs: when a claim hits, the board needs to know quickly what the association owes and what can be charged back.

What we handle every month

• Bank and reserve account reconciliations
• Owner ledgers, dues billing and payment recording
• Board-approved bill pay
• Balance sheet split by operating and reserve fund
• Income and expenses against the adopted budget
• Delinquency reports and owner reminders
• Year-end tax support: Form 1120-H and 1099s
• Records organized for your CPA when an audit or review comes up

We work in QuickBooks Online or the software your association already uses, and your board stays on the bank accounts.

Condo association or HOA: does it matter?

For the books, less than you might think. Most Colorado condo associations and HOAs are both common interest communities under the Colorado Common Interest Ownership Act, with the same budget, reserve and records rules. The difference is what the association owns. A condo association usually maintains and insures the building, so its budget, reserves and insurance run much larger per owner. We set up the chart of accounts to match. See our HOA accounting services for townhome and single-family communities.

What it costs

A flat monthly fee based on the size of the association and how much activity it has, starting at $200 a month. No long-term contract, just 90 days notice. The fee adjusts 3% a year after the first year. See HOA accounting cost for real examples, and HOA tax returns for the yearly Form 1120-H.

Common questions

Do you work with self-managed condo associations?

Yes. Many of our condo clients run themselves with a volunteer board. If you have a manager, the manager keeps running the building and we take the books off their plate.

Do you work with small condo buildings?

Yes. Small buildings often need clean books the most, because one treasurer carries all of it. Use the estimator above to see a range for your size.

How do you handle the master insurance policy?

We record the premium as a prepaid expense and spread it across the policy period, so your monthly reports show the real cost of each month.

Do condo associations file Form 1120-H?

Most do, and we prepare it as an optional add-on. One catch for resort buildings: units mostly rented for stays under 30 days do not count as residential toward the 85% test, which can push the association to file Form 1120 instead. We check this every year.

Can you take over from our current accountant or management company?

Yes. We pull the last statements and reports, reconcile what is open, and start monthly reporting. Books that have never been reconciled need a cleanup first, and we quote that up front.

Talk to a local team

We are a small Colorado firm based in Frisco, not a national chain. When you call, you reach a real person who knows your books, and we reply within one business day. Call (970) 633-3997 or schedule a call with our team.

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More: HOA accounting services in Colorado · HOA bookkeeping services · HOA accounting cost · HOA tax returns · Colorado HOA reserves · Mountain HOA accounting · Denver HOA accounting