Financial professionals play a vital role in ensuring the financial stability and effective management your co-ops or condo. These include CPAs and auditors who handle tax filings and financial audits, to property management firms responsible for bookkeeping and budgeting, to specialized financial experts hired to address specific concerns or challenges.
- Files the income taxes on behalf of the association
- Audits the financial statements according to generally accepted accounting principles (GAAP) if required by the bylaws
- Itemizes capital improvement costs per year so that sellers can add it to their cost basis to reduce their gains tax when selling
- Handles bookkeeping for the association
- Responsible for providing a budget to the board
- Reviews and approves the budget
- Sets maintenance increases
- Determines needed assessments for capital projects
- Refinances the underlying mortgage
- Challenges New York City co-ops and condos assessed real estate taxes
- Compensated as a percentage of how much they reduce their clients’ real estate/property taxes
Some boards also engage more specialized financial professionals on an as needed basis. For instance, if they suspect fraud or embezzlement, they may engage a forensic accountant to analyze financial information as part of the legal proceedings.
Some boards may partner with financial experts like The Folson Group, who specialize in cutting operating expenses and capital project costs.