Preferred Management offers a wide array of services, including Financial Management. 

Accounting services are provided to our clients through TOPS Software.  All reporting can be tailored to meet the unique needs of each association; however, our standard monthly reporting to our Board of Directors includes the following reports:

  • Balance Sheet

  • Income/Expense Statement (Actual versus Budget)

  • General Ledger Detail

  • Accounts Payable Report

  • Check Register

  • Bank Reconciliations/Statements

  • Aged Delinquency Reporting

  • Cash Receipts Report

 

As with our financial reporting procedures, our collection procedures can be adapted to fit the Board’s needs.  Our standard collection processing includes 30-60-90 day notifications with a final 10-day notice prior to submitting the account for outside collections.  We request that each of our clients implement a collection policy for our guidance in operating within the guidelines of the Association policies and procedures.  Each of our clients have separate depository accounts and no funds are co-mingled with any other client.  Preferred Management Associates has a firm inner-office policy that two signatures must be present on every check that is written (preferably one board member and one manager).  Again, we adapt to the board’s request with regard to signatures, as some boards prefer that both signatures be that of a board member, but we stand firm that two signatures must be present on every check.

 

Preferred Management Associates operates utilizing a cloud-based server to ensure the security of all of the electronic records that we hold.  Each client is kept in a separate file with sub-files that mirror each other for easy access for all staff members who are in search of specific information (i.e., Financial Reports, Owner Correspondence, Governing Documents, Violations, etc.).  We make every attempt to be as paperless as possible, but also realize the importance of hard copy records when necessary.  These records are held within our office and purged annually to the office of the client for long-term retention.  For internal controlling purposes, our accounting is split into three separate categories:

 

  1. Accounts Receivable

  2. Accounts Payable

  3. Bank Reconciliation

 

Our reporting capabilities are strictly kept to standard TOPS reports.  There are many adaptable reports within the TOPS Software that can be used to suit the Board’s needs and requests.  We will however, not provide any special reports outside of those within the software.  In our opinion, providing special, manually completed reports allows for a margin for error that we are not willing to accept.

 

Each manager follows through personally on delinquent accounts and late notices so that they remain familiar with the account holders and what stage the process is in.

 

Our Accounting Department, as a “team” manages the daily finances (i.e., Accounts Payable, Accounts Receivable and Bank Reconciliations) of all Associations managed by Preferred Management Associates. This ensures a standardized accounting system while enforcing the checks and balance standards set in place by our firm.

 

Preferred Management Associates works closely with the Association’s Finance Committee and/or Board of Directors in establishing an annual operating and reserve budget.  This budget will be based on historical data, actual numbers, industry standard funding levels and reserve study requirements (if applicable).

 

Preferred Management Associates provides a preliminary budget to the Finance Committee and/or Board of Directors and works with each to modify the preliminary budget to fit the needs of the Association.  Follow through with adoption procedures in accordance with the community’s governing documents is also implemented by management, at the Board’s direction.

 

While we assist our clients in preparing requests for proposals for auditing and accounting services, it is entirely a board decision which accounting firm they choose.  We currently work with a variety of accounting firms, including but not limited to William Owens & Company, Weseloh & Carney, Kirk & Summa and Zavada Associates.

 

Preferred Management Associates invoices the unit owners by the dates set forth in the governing documents of the Association.  Invoices are generated utilizing the TOPS Software and include billing correspondence detailing the invoice amount, options for payment, and annual/quarterly/monthly invoice (again, as set forth in the Association’s governing documents).