Reserves, expenses, and equity

Looking at a balance sheet for a HOA can be confusing. Here is a (relatively) easy article to look at how these different items should be reported: https://camblog.topssoft.com/reserve-fund-accounting-for-community-associations

For consideration – reserves are funds set aside for future expense – like resurfacing the pool. Equity, or retained earnings whether positive or negative is money from budge surpluses or deficits. See this article for more: https://keydifferences.com/difference-between-retained-earnings-and-reserves.html