Summer is the perfect time for condo association boards to take a closer look at their finances before budget season begins. A mid-year financial review can help identify potential issues early and ensure the association remains on track for the rest of the year.
-
Review Budget Performance: Start by comparing actual income and expenses to the approved budget. Look for areas where costs may be higher than expected, such as utilities, maintenance, insurance, or repairs. Identifying budget variances now can help avoid financial surprises later.
-
Assess Reserve Contributions: Reserve funds are essential for future repairs and replacements. Boards should review reserve balances and confirm that contributions are being made as planned. See more on new requirements for reserve funding beginning in 2027. If major projects are on the horizon, now is a good time to evaluate whether reserve funding is sufficient.
-
Plan for Year-End Expenses: It's also important to begin preparing for expenses that typically occur later in the year, including snow removal, insurance renewals, and capital projects. Early planning leads to more accurate budgeting and better financial decision-making.
A mid-year financial checkup helps boards stay proactive, strengthen financial stability, and reduce the risk of special assessments.
Is your board looking for support on reserve planning or your association's financial health? Haus Financial Services works with small community associations in Chicago to develop sound financial strategies that support long-term success. Learn more about their services and how they can help your association plan for the future.
