Should home owners association be on cash or accrual basis?

Answer Depending on the nature of the association's business profile -- commonly, a non-profit corporation -- there may be guidelines that exist for that profile. Generally, best practices dictate that fi... Read More »

Top Q&A For: Should home owners association be on cash or ac...

Why is the accrual basis of accounting generally preferred over cash basis?

Two accounting methods exist for recording financial transactions--the accrual basis and the cash basis. The accrual basis records transactions, expenses and revenue as they occur, regardless of wh... Read More »

Does the 3M company use a cash base or an accrual accounting basis?

3M uses the accrual method of accounting. Corporations with annual gross receipts in excess of $5 million cannot use the cash method of accounting, per Internal Revenue Service regulations. 3M had ... Read More »

What is the difference between a property owners association and a home owners association?

There really is no difference, except for the styling of the name. Both organizations operate through covenants and bylaws recorded against a group of properties with the goal of making said proper... Read More »

Are fines imposed upon home owners for rules violation legal and collectible in a home owners association?

If the violations and fines are set forth in the associations's covenants and bylaws, yes, they are.