The Income Statement is a key Financial Report that describes an organization's financial condition over specific period of time such as a month or year. This is different from the Balance sheet, which describes an organizations financial condition at a specific point in time, such as December 31, 2021.
How do I Review the Income Statement for a particular HOA?
Note: In the Accounting Section, select Income Statement with Budget Comparison, choose the Financial Year, and confirm the beginning “From Date” and the ending “To Date” the Financial Year
What is the Income Statement and Budget Comparison?
The income statement reports the amount of net revenues brought in by a HOA during a specific period, with monthly production of income statements being the most common frequency for Homeowners Associations; the Income Statement summarizes the HOA’s revenues and expenses. The “bottom line” of an income statement is the difference between the revenues and expenses. The MTD and YTD Budget Comparison part of the Income Statement shows how well the HOA is sticking to its budget. The MTD comparison shows this for the current month, while the YTD comparison shows it for the current year up to the present date. It's like having a GPS for your HOA's finances, showing you whether you're on the right path or need to make adjustments.
Income Statement Format
In contrast to the balance sheet, which is “as of” a particular date and describes the HOA’s financial condition at a specific point in time, the income statement covers a period of time. Usually income statements are updated on a monthly basis and summarize income and expenses over that length of time.
Income Explained
In the context of HOAs, income is usually generated in the form of Homeowner Assessments or the sale of certain community items such as a pool key or parking pass.
Expenses Explained
In the context of HOAs, expenses are the costs incurred during the process of managing a HOA such as the cost of maintaining a community’s landscape or fixing a roof leak.
