How to read and review your condo association accounts

Budgets, fees, invoices, and variances: a simple method to prepare an account review and ask the right questions.

Reviewing accounts is one of the most useful duties of a condo board. The goal is not to replace an accountant; it is to make sure that expenses are understandable, justified, and consistent with the decisions made by the association.

When should you review the accounts?

Do not wait until the general meeting. Ask the property manager for the accounting documents early enough and schedule a board review. This gives you time to clarify unusual items before the accounts are presented to co-owners.

Documents to gather first

• The approved projected budget and its current tracking.
• Annual accounts and their appendices.
• A detailed list of expenses and the related invoices.
• Relevant cash or treasury statements.
• Current contracts, quotes, and decisions related to work.
• General meeting minutes authorizing significant spending.

A five-step review method

1. Compare the approved budget with actual spending and explain material variances.
2. Focus on significant or unusual categories, comparing them with prior years and current contracts.
3. Check a relevant sample of invoices: high amounts, new services, incident-related items, and vague descriptions.
4. Track major work and exceptional spending separately from routine costs.
5. Prepare a short, documented list of questions and keep a record of the answers and actions agreed.

Items that deserve extra attention

• A significant expense without clear supporting documents.
• An invoice that differs materially from the original quote.
• A renewed contract whose terms or expiry date have not been reviewed.
• Recurring budget variances in the same category.
• A service billed without a report or evidence of completion.

Good oversight is not about suspecting everything. It is about making every expense understandable and traceable.

Work effectively with the property manager

Share questions in advance, request the specific documents you need, and agree on a follow-up format. This helps the board fulfill its oversight role while keeping the conversation constructive.

Track expenses with CoproHarmony

CoproHarmony centralizes documents, decisions, contracts, and follow-up information so that the board can easily find the context behind an expense and keep a history of actions. For complex accounting or legal questions, seek advice from a qualified professional.