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A
Difference
in Function...
One of
the most
critical
areas
in property
management
is the
accounting
function.
Real Support's
accounting
system
is designed
to meet
the particular
needs
of your
Association,
and our
accounting
staff
looks
forward
to interacting
with your
Association's
treasurer
or designee.
The Accounting
Department
is similarly
structured
to the
Property
Management
Department.
There
is an
accountant
and bookkeeper
team assigned
to each
property.
From an
accounting
standpoint,
we find
that the
"team
approach"
works
best.
Again,
there
are always
one or
two of
the same
people
available
to assist
with any
questions
or problems.
Following
is a brief
outline
of our
computerized
accounting
system
and methodology:
1.
ACCOUNTS
RECEIVABLE
- Procedures
for
Collection
of Assessments
Between
the
20th
and
the
25th
of each
month
a bill
is sent
to every
unit
owner
for
monthly
collection
and
between
the
20th
and
25th
of March,
June,
September
and
December
for
quarterly
collection,
itemized
by type
of charge.
Any
previous
balances
due
are
itemized
separately,
also
by type
of charge.
Billing
can
also
be done
on a
semi
or annual
basis.
(See
the
sample
invoice).
The
return
section
of the
invoice
along
with
a check
made
payable
to the
Association
are
to be
placed
in the
return
envelope
provided
and
mailed
to the
bank.
Payments
are
received
via
the
bank's
lock
box,
whereby
funds
are
immediately
deposited
in the
Association's
individual
checking
account.
Minimum
balances
are
maintained
in checking
accounts.
As soon
as a
cash
surplus
is available,
these
funds
can
be transferred
into
an exclusive,
interest-bearing,
operating
account.
There
is no
pooling
of funds
at any
time
between
the
different
Associations
we manage.
The
bank
electronically
transmits
the
receipts
information
to our
computer
in order
to update
our
accounts
receivable
unit
files
on a
daily
basis.
A late
charge
policy
may
be established
by the
Board
of Directors
within
the
parameters
of the
Association's
By-laws
and
State
Regulations.
We can
implement
late
charge
policies
on a
percentage
or fixed
amount
basis.
If a
unit
owner
is still
delinquent
at the
time
of the
following
month's
billing,
the
owner's
previous
balance
plus
any
late
charges,
special
charges,
etc.,
are
indicated
along
with
that
month's
charges.
We recommend
that
the
Board
of Directors
adopt
a policy
regarding
the
timing
of having
our
in house
attorney
file
suit
or process
a lien
in the
Land
Records
Office
on the
unit
owners
that
are
in arrears.
This
prevents
the
unit
from
being
sold
without
the
uncollected
fees
being
paid.
Real
Support
recommends
that
the
lien
process
begin
if the
arrears
have
been
outstanding
for
two
months.
All
costs
incurred
for
placement
and
removal
of liens
are
assessed
from
that
unit
owner
and
not
to the
Association.
The
Board
of Directors
can
elect
to retain
their
own
attorney
for
this
process,
or we
can
use
our
in-house
attorney.
- Accounts
Receivable
Reports
Daily
Collection
Reports
are
maintained
for
internal
purposes.
Daily
Delinquency
Reports
are
available
on-line
in our
office
along
with
the
Final
Delinquency
Report
issued
when
we close
out
the
billing
cycle.
Daily
Unit
Owner
Account
Balance
Reports
are
available
on-line.
Our
Accounts
Receivable
Supervisor
is prepared
to give
the
status
of any
unit
owner's
account
at any
time,
and
will
provide
a written
account
analysis
when
requested.
2.
PAYROLL
(as applicable)
Unless
otherwise
specified,
Real Support
will contract
for an
exclusive
computerized
Association
biweekly
payroll.
All paychecks
and payroll
taxes,
including
social
security,
withholding
taxes
and unemployment
compensation,
are paid
out of
the Association's
funds.
Payroll
registers
are maintained
on a biweekly
basis,
and various
summary
reports
are maintained
on a quarterly
basis.
The latter
correspond
to the
filing
of the
quarterly
and year-end
federal
and state
tax returns,
including
employee
W-2's,
all of
which
are reviewed
prior
to filing
by our
staff.
3.
General
Ledger
- A.
Cash
Hybrid
or Accrual
Options
Real
Support's
accounting
system
is flexible
enough
to offer
either
cash,
hybrid
or accrual
basis
for
accounting,
in accordance
with
generally
accepted
accounting
principles.
At your
request,
our
Accounting
Department
Manager
will
discuss
these
options
with
the
Board
of Directors.
Any
specific
Association
accounting
needs
can
be determined
at that
time.
- B.
Monthly
Journals
Computerized
cash
disbursements
(by
account
sequence
and
general
journal,
including
all
monthly
transactions)
are
maintained
as essential
elements
of double
entry
accounting.
- C.
Monthly
General
Ledger
Our
computerized
general
ledger
is based
on a
cumulative
fiscal
year.
In any
particular
month's
general
ledger,
it not
only
includes
the
activity
for
that
current
month,
but
also
for
all
proceeding
months
of the
current
fiscal
year.
This
greatly
facilitates
individual
account
analysis.
4.
Monthly
Financial
Statements
Timing
of Monthly
Financial
Statements
Copies
of Monthly
Financial
Statements
will be
available
for distribution
to the
Board
of Directors
in advance
of the
monthly
Board
Meeting,
if possible.
Reports
for the
previous
month
will be
delivered
between
the 2nd
to 4th
week of
the next
month,
depending
on whether
the reporting
is done
on a cash,
hybrid
or accrual
basis.
For example,
March
financial
will be
delivered
in the
latter
part of
April.
For
more information
For Proposal
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