Basic concepts of accountability in condominiums

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In this article, we will cover all the essential aspects of accounting in condominiums, explaining the basic concepts, the responsibilities involved and the legal aspects that govern this process.

Keep reading to understand how to carry out efficient and transparent financial management in your condominium!

Accounting is a process that involves the detailed presentation of income and expenses incurred over a given period.

Its importance goes beyond simply demonstrating numbers ; it is essential to guarantee transparency in administration, facilitating trust and cooperation between condominium owners and management.

Who is responsible for accountability?
The responsibility for accounting in a condominium lies switzerland telegram data largely with the trustee, who acts as the legal representative of the condominium.

However, this task often relies on the support of an administrator, who helps with organization and financial control.

The property manager must ensure that all financial documents are in order and that reports are presented in a clear and accessible manner to condominium owners.

Check out: How to prepare an excellent financial report?

The administrator, when hired, plays a technical and operational role, helping with the preparation and presentation of accounts.

The importance of accountability for condominium owners
In addition to being a legal obligation, accountability is also an essential tool for strengthening trust between management and residents.

When carried out in a transparent and regular manner , it allows condominium owners to closely monitor the condominium's financial management, encouraging more active participation in collective decisions .

Clarity and accuracy in accounts contribute to an environment of trust and collaboration, which are fundamental to the proper functioning of the condominium.

Consequences of lack of accountability
Failure to provide financial statements can have serious consequences for the condominium administration.

The lack of transparency can generate distrust among residents, leading to internal conflicts and, in more serious cases, legal action against the property manager or administrator.