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M A R C H , 2 0 1 7
C
ONDOMINIUM
A
PPROVAL
E
XPERTS
FHA Condominium Project Approvals
(New, Established & ReCerti cations)
FANNIE MAECondominiumProjectApprovals
w w w . P
R O J E C T
A
P P R O VA L S
. c o m
Call Phil Sutcli e 215.368.9452
5 North Cannon Ave. Lansdale, PA 19446
phil@projectapprovals.comEach year, any community that
has delinquencies on maintenance
assessments should budget a bad
debt expense and should reflect an
allowance for doubtful accounts on
their balance sheet. This allows the
community to manage cash flow for
units that do not pay maintenance
fees and creates a necessary account-
ing method for “writing off” debts that
have a low likelihood of recovery
and all means of collection have
been exhausted. Under accounting
principles, any corporation that has
bad debt should be budgeting for it
accordingly. If you are not clear on
how to incorporate bad debt into your
budget each year or how to “write
off” accounts, please contact your
accounting professional to assist you.
With audit season in full swing, this
time of year is perfect to analyze your
financials to make sure key compo-
nents are included, proper entries are
made and the format is easy to under-
stand. Financials are a vital tool for
board members and managers alike;
it is important that the financials are
presented accurately and in a format
that is easy to understand. Special
thanks to Mohammed Salyani, CPA
– Principal from Wilkin & Guttenplan,
PC for his help during the authoring of
this article.
n
MANAGEMENT
TRENDS...
from page 40.
"...it is important that the
financials are presented
accurately and in a format
that is easy to understand."