Year-End Financial Review: Preparing Your Association for a New Year

As the year draws to a close, it’s time for condo associations to begin conducting a comprehensive year-end financial review to ensure that they have a solid financial foundation for the upcoming year. 

As the leading St. Petersburg condo management company, we at Wise Property Management understand the significance of this review process and have created an effective, streamlined strategic approach to follow.


1. Gathering Financial Documents

The first step in the year-end financial review process is to thoroughly gather all relevant financial documents. Wise Property Management offers comprehensive St. Petersburg association management services and can assist in the gathering of the documents that include but are not limited to:

Income Statements

Income statements are a detailed breakdown of the association’s revenues and expenses over the past year.

Balance Sheets

Balance sheets are an overview of the association’s assets, liabilities, and equity, providing a snapshot of its financial position.

Bank Statements

These statements are a thorough examination of all bank transactions to identify any irregularities or discrepancies.

Receipts and Invoices

A comprehensive collection of all receipts and invoices to ensure accurate recording of financial transactions.


2. Budget Performance Evaluation

Once your association’s financial documents are in order, it’s time to evaluate the performance of the association’s budget throughout the year. This can involve a detailed analysis of the budgeted versus actual figures. This evaluation provides valuable insights into the association’s financial health, enabling leaders to make informed decisions for the upcoming year.

Some key budget aspects to consider include:

Income Sources

Your association should take time to evaluate the accuracy of projected income sources against actual receipts. Make sure to identify any significant deviations.


Analyze each expense category to ensure it is aligned, and will continue to align, with the budget, identifying areas of overspending or potential cost-saving opportunities.


It is important to understand the reasons behind any variances between budgeted and actual figures, whether they are due to unforeseen circumstances or operational inefficiencies.


3. Reserve Fund Assessment

The third step involves a comprehensive assessment of the association’s reserve fund. A healthy reserve fund is essential for addressing unforeseen expenses and helping to maintain the community’s infrastructure. As your St. Petersburg condo management company, we recommend a thorough examination of:

Reserve Fund Balance

During this assessment, you should ensure that the reserve fund balance aligns with your association’s long-term financial goals and obligations.

Projected Expenses

Take this time to review the projected expenses for future projects and major repairs, comparing them with the available reserve funds.

Reserve Fund Contributions

During this assessment, your association should determine the adequacy of current association contributions to the reserve fund. Consider any adjustments needed to meet future financial obligations.


4. Financial Auditing and Reporting

The final stage of your association’s year-end financial review involves conducting a comprehensive financial audit and creating a report.

An External Audit

Engage a qualified external auditor to conduct an independent review of the association’s financial statements, ensuring compliance with accounting standards and regulations.

Financial Reporting

Prepare detailed financial reports summarizing the results of the year-end financial review. These reports should be transparent and easily understandable for all association members and relevant parties.


Prepare Your St. Petersburg Condo Association for the New Year With Wise Property Management

In order to ensure that your association is in a healthy financial state and is as prepared as possible for the next year, it is important to conduct a thorough financial review. With Wise Property Management’s guidance and expertise, your end-of-year financial review process can be streamlined and easily done.

To learn more about how our St. Petersburg association management can help your community financially prepare for the new year, please request a proposal today or call us at (813) 968-5665.

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