Female Bookkeeper
Boards & Buildings > Finance

Who are the financial professionals and what are their responsibilities?

October 10, 2023 - 12:30AM
Written by
Tina Larsson Headshot
Tina Larsson
Female Bookkeeper
In a nutshell
Financial professionals, such as CPAs/auditors, property management firms, and tax certiorari experts, have specific responsibilities including tax filing, auditing, budgeting, property bookkeeping, and challenging real estate taxes. Boards may also involve specialized professionals, like forensic accountants, in case of suspected fraud or embezzlement.

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.

CPA / Auditor
  • 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
Property management firm
  • Handles bookkeeping for the association
  • Responsible for providing a budget to the board
Board (unpaid volunteers who govern the association)
  • Reviews and approves the budget
  • Sets maintenance increases
  • Determines needed assessments for capital projects
  • Refinances the underlying mortgage

 

Tax Certiorari (“tax cert”)
  • 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.

ABOUT THE AUTHOR
Tina Larsson Headshot
Tina Larsson
Tina Larsson is the co-founder of The Folson Group, New York City's leading co-op and condo consultancy. A prominent speaker on proactive co-op/condo leadership and ESG matters, Tina is the author of Living the High Life: How Smart Co-op and Condo Owners Protect Themselves and Their Investment. In... [read more]