Financial management

Managing a co-ownership requires accounting and financial skills. If the manager masters them, he will be able, under the supervision of the board of directors, to play a crucial role in the proper operation of the immovable. For instance, he will know how to balance budgets and manage efficiently the funds of the co-ownership such as monitoring contracts with various service providers, the payroll (salary of the janitor) and the work to be done in the short, medium and long term. A review of the various financial tasks that could be entrusted to the co-ownership manager.

Accounting

One of these tasks is to keep the syndicate’s accounting. Take for granted that this mandate involves the presentation of accounting documents to the directors. If the manager has the skills to take on this task, he could be called upon to:

Cash flow management

As part of its managerial tasks, the manager may be required to:

  • Deposit (money collected) into a separate bank account opened in the syndicate's name;
  • Manage the bank accounts and the day-to-day operations of the syndicate;
  • Manage the investments of the contingency fund;
  • Pay the co-ownership bills;
  • Ensure the payment of salaries to the co-ownership employees;
  • Proceed, when the syndicate is an employer, to pay the contributions to the “Commission des normes, de l’équité, de la santé et de la sécurité du travail” (CNESST) (Commission on Labor Standards, Equity, occupational Health and Safety);
  • When the syndicate is an employer, make deductions at source of taxes and contributions to the various public plans, namely: the contributions to the “Régime des rentes du Québec” (RRQ), (Québec Pension Plan contributions), to the “Régime québecois d’assurance parentale (RQAP) (Québec Parental Insurance Plan and Employment Insurance (EI) premiums.

Expenses management

As part of its tasks, the manager may need to:

  • Proceed to the allocation of expenses between the co-owners;
  • Prepare and send notices of assessment, that is the requests for payment of common expenses (condo fees) to the co-owners;
  • Oversee the collection of common expenses;
  • Manage the payables and receivables;
  • Send reminder letters for the payment of amounts owed to the syndicate, such as to a co-owner whose payment of common expenses is past due, or who refuses to pay them.

WHAT YOU SHOULD KNOW ! The financial management of a co-ownership is a burdensome, touchy and often complex task. It requires rigorous accounting. It is therefore in the directors' best interest to retain the services of a financially competent manager.

WHAT TO KEEP IN MIND : A manager must have a wide range of technical skills with a great deal of experience. He must have extensive knowledge of the operation of an accounting department, an understanding of the various software packages available on the market, excellent communication skills and be efficient.

WARNING ! Some management companies intermingle, within the same account, the money belonging to many syndicates of co-owners' for which they work. This practice could be harmful to the syndicate’s financial assets. You must therefore ensure that your manager does not advocate this method, as this could result in extremely serious financial losses. For example, if a manager finds himself in trouble financially, the co-ownership’s funds for which he is responsible could be seized by a creditor.

 

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