Whether your community is large or small, we provide comprehensive management services by evaluating your community’s wants, needs and goals. means that account has a credit with the association. Conversely, seeing a large positive number on an account is not positive for the association, as it means someone is seriously in arrears. Consider the P&L. On top it will show the various forms of income and the lower portion will show the line items of expenses. And at the bottom, it will show which category is the bigger number. What did you take in? What did you spend and what did you spend it on? Are you in the red or the black — and why? A P&L’s usefulness is enhanced when it’s lined up against budget numbers. Thus you can measure the budget’s accuracy of prediction and spot trends. The Transaction Detail report is a further break-down of the various line items found in the P&L. So if you have a line item for Building Repairs in the P&L, the transaction detail report will show the individual invoices. The thing to remember is that financial statements are served as a package because they all tie together in some manner or other. There is no one report that will give you all the information, just as there no such thing as a band of one. (That’s called a solo artist.) The Balance Sheet is a statement of the association’s assets, liabilities and equity at a specific time. In the business world, it’s used as a measuring stick for a company’s liquidity. So as not to get too far into the weeds, I recommend keeping largely to the assets side. This will show the balances of the pockets in the pants. It will show the A/R (again, positive is not a positive thing). The liabilities and equity side will tell you how much the association has paid itself.
Back in understand 2012, the Minnesota Legislatureof decreed thatcost-effective all We the importance efficient communities governed under the Minnesota Common Interest practices that result in the cohesive operations of the community Ownership Act must adopt the accrual basis of accounting. Our hands-on management is responsive to the requests of the Accrual basis differs from cash basis in the way income and expense Board of Directors and Homeowners while preserving the are recognized. Accrual recognizes an expense upon receipt, property and it’s lifestyle of the community. regardless of when due. Cash recognizes expense when the invoice is actually paid. Accrual recognizes income when has it is due For over four decades, Gaughan Companies been trusted andfor cash does so whenand it isperspective. actually received. our integrity Our Management Teams treat
your Association as if we owned it. Each member of our team w
Accrual basis is preferred by those with more than average knowledge always be accessible, reliable and accountable to you, the of accounting because it offers a better depiction of financial status homeowner. during a specific accounting period.
There. Don’t you feel smarter? If now you approach your financials withMaking greater confidence, then this missive has accomplished its the Difference: humble task. Gaughan Companies is small enough to tailor their servic to meet the needs of the Associations they manage, and large enough to make sure all areas of Associations’ need are handled promptly and professionally.
~ Susan Sabrowsky Ashbourne Townhom
Community Association Mana Accessible. Reliable. Accountable. Hands-on Management.
Whether your community is large or small, we provide comprehensive management services by evaluating community’s wants, needs and goals. Creating peace of mind for tree care services. Positive attitudes. Professional interactions. Exceptional service. Because when you look good, we look good.
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We understand the importance of efficient cost-effec practices that result in the cohesive operations of the Our hands-on management is responsive to the req Board of Directors and Homeowners while preservin property and lifestyle of the community.
For over four decades, Gaughan Companies has be for our integrity and perspective. Our Management T your Association as if we owned it. Each member o always be accessible, reliable and accountable to yo homeowner.
Making the Difference:
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