This is more of a public service announcement. Please review your financials monthly!
Most errors can be researched and corrected quicker and easier in the period that it occurs. We have been finding very often that bookkeepers post unreconciled items to the Retained Earnings or an Exchange account. This is only a good practice if it gets reconciled prior to closing the monthly books. Once the books are closed and time passes, it is increasingly harder to research.
There is also the mantra that “the CPA will clean it up at the end of the year.” Well, not unless we are auditing it (and it is within the scope of the audit). If your revenues only require you to have a Compilation per FL Statutes, that is not likely something a CPA will investigate.
It is very important for your monthly financial package to have supporting schedules for all balance sheet items, bank reconciliations, and bank statements. This is also why it is important to have a licensed property management company that has the tools in place to provide this detailed information. See “Get Managed and Stop Losing Track.” Having this information in your monthly financials will keep everyone accountable and allow the Board to verify all the information ties to supporting schedules on a regular basis.
Disclaimer time... We do our best to provide the most up-to-date and relevant information with our subject matter. It is our opinion, and we are not a government entity nor an authoritative source for professional research. Always hire a professional when you want the most accurate information as it relates to your company/association specifically.
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