Use These Cash Management Tips to Protect Your Association Clients’ Financial Security (And Your Own)
Inflation is taking a bite out of the budgets of community associations and the bottom lines of management firms like yours. The months and months of rising prices, combined with the threat of an impending recession, leave associations — and, in turn, the management companies whose survival depends on them — at risk.
According to Jeremy Newman of Newman Certified Public Accountant, P.C., which focuses on the community association industry in the western part of the United States, the risk stems from a potential domino effect that starts with delinquencies.
“Owners don’t pay their assessments, and then associations use reserves cash for operating expenses,” he says. “Boards don’t realize until it’s too late that they need to increase assessments or cut expenses.” These boards may then struggle to pay their vendors, including managers.
Newman warns, too, that what goes up doesn’t always come down: “Inflation will cause prices to increase and then stay higher. Costs will not recede.”
Strong cash management can help you and your clients both protect your financial security over the short and long terms.
In our new article, you’ll learn 3 key steps you can take to be proactive and improve your association’s cash management.
Read the full article here: 3 Tips for Effective Cash Management — for You and Your Clients