At the beginning of the fiscal year, you should take a thorough look at all the projects that are anticipated to be completed before the year's end and prioritize the most important ones to be completed and paid for first. In doing this, you can better manage assessment fees and project funds.
CALCULATE INCREASES IN EXPENSES
It is not uncommon for expenses to increase over time. Such expenses that typically increase year over year include utilities, accounting, and legal services. To ensure that your budget is as accurate as possible, it is particularly important to take these increased costs into consideration.
REVIEW CONTRACTS WITH VENDORS
Vendors are an absolute necessity to communities & properties. From landscaping to maintenance of common areas and buildings, you rely heavily on the services of your vendors. To keep costs low, you should review your vendor contracts and determine if there are any opportunities to reduce costs.
COVER INSURANCE DEDUCTIBLES
Properties should have a separate fund aside from reserves to cover insurance deductibles for the insured property. To ensure that the appropriate amounts are set aside for this fund, it is necessary to review all of the insurance policies and calculate the total amount needed to cover all of the policy deductibles.
CONTRIBUTE TO RESERVE FUNDS
Each year, the property should set aside a certain percentage of funds in a reserve fund to be used for the repair, maintenance, or replacement of the components of the property for which the property has an obligation to maintain. Examples of such components can include roofing of community buildings, roadways, parking lots, and community pools.