Year-End Closing Preparations

By: Tarra Eshgh, CMCA®, AMS®, PCAM® ST&R Portfolio Management

As we approach the end of 2024—just three months away—our management company and accounting department are diligently preparing for year-end closing. We have compiled a checklist to ensure that all items are addressed efficiently. Key items include:
 

1. Closing Open/Pending Maintenance Items: Begin finalizing any maintenance items scheduled for completion this year.
2. Approved Budget Notification: During the first week of December, we will notify communities regarding any changes to HOA dues/assessments effective January 1st.
3. Mailing Orders for Coupon Booklets/Statements: If utilizing a third-party mailing service, orders for coupon booklets or statements for HOA dues/assessments should be placed by the second week of December. This will ensure homeowners receive their materials before the holidays and can prepare for the new year.

     4. Annual Tax Return/Audit Engagement Letters: Boards should sign and return engagement letters to our CPAs for tax return preparation.
    5. Accrual Process and General Ledger Review: The accounting department will conduct a thorough review of the general ledger classification, identifying any items that require reclassification before closing the December financial statements.
    6. 1099 Generation: Preparation for 1099 forms will be initiated.
    7. Closing Current Year Filing System: We will finalize the current year’s filing system and prepare new files for the upcoming year.
    8. Holiday Office Closure Schedule: The schedule for office closures during the holiday season will be prepared for the following year.  
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While some management companies may have longer checklists, the items above represent the essential components of our year-end closing process.