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:

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:

One thought on “Reserves, expenses, and equity”

  1. Thanks to the Board for posting the audio of the meeting I missed .Do you have a contractor & timeline for repairing the cedar posts in all the buildings?
    Thanks again

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