Bookkeeping and Accounting
AMG’s property management software records income and expenses in a state-of-the-art database for processing. Bills, contracts, utility services and payroll are processed under this system per our clients’ policies. AMG prepares for each client financial reports indicating all income, expenses, accounts receivable and cash positions. Statements are available to community leaders on a near real-time basis online.
AMG’s professional team assists client communities with the preparation of their annual budget, including nontechnical estimates of suggested capital reserves or coordination of a professional reserve study. Such analysis helps reflect estimated remaining life of components, estimated replacement costs, and suggested annual funding contributions.
In order to operate highly effective communities, financial records must be easy to understand, readily available and accurate. AMG makes this process easy for its clients.
Fee collection
With a challenging economy, many homeowner associations in the Carolinas and across the United States are struggling to collect association fees from their members and/or developers. The good news is AMG has developed processes and systems that most associations can utilize to help collect fees from delinquent members.
Over the last 20 years, the number of community associations in the U.S. has grown from 130,000 to more than 300,000. Over 59 million Americans live in community associations. Most associations have a responsibility to collect funds for things that were historically municipality responsibilities, including street lights, sidewalks, sewer stations and swimming pools. In some cases, associations also provide building maintenance. To fulfill these duties, associations must collect fees from their members.
AMG has a five-step process to efficiently collect Association fees.
Educate owners. According to internal research, educated homeowners are much more likely to pay on time than those who receive little or ambiguous information. AMG’s education process includes meetings, newsletters, articles and face-to-face interaction with Association members. Effective communication is paramount.
Collection process. After developing a good education system that conveys the information in terms the owner can understand, the Association must develop a collection process. AMG, in conjunction with several law firms, has developed a system recommended to its clients. By adopting the AMG model collection policy, Associations can know that they are treating all owners fairly, executing their fiduciary duties and diligently working towards collecting the revenue due to their community.
Member-centric tracking. AMG’s system uses unique technology to not only track but impact each step of the process adopted by the community. Data are seamlessly available to our clients, community leaders and attorneys employed by the Association. This saves both time and money.
Engaging the right professionals. While there are many choices of lawyers who can assist your association and the Association’s decision to retain counsel rests with its Board, AMG works with select law firms who have a proven track record of cost-effectively representing community associations. By working with these professionals, community associations will likely not only save time and money but also likely collect outstanding amounts due more quickly.
Payment plans. In some cases, Associations may want to negotiate a payment plan with a delinquent owner. However, this must be done carefully. AMG’s 30 years of experience indicates that payment plans on delinquent fees end in default 90% of the time. AMG clients have the benefit of AMG’s expertise in helping them negotiate realistic payment plans if and when appropriate
Association Banking
AMG’s banking partnerships provide transactional convenience, often at greatly reduced costs. AMG’s CEO, Paul K. Mengert, has served on a bank advisory Board and understands how Associations can enhance their financial position through utilizing programs often not available to the general public. AMG’s relationships allow clients to accept payments by all major credit cards, by Pay Pal, and even over the telephone. All of this helps AMG’s clients collect their revenues faster and at lower costs, usually at no cost to the Association.
In today’s world, guarding against cyber and other financial crimes should be on everyone’s mind. AMG’s bank partnership affords our clients protections available through First Citizens Bank, which has more than a century of experience protecting their clients’ assets. The company has earned top ratings starting with the fact that it is a Fortune 500 company.
In addition to AMG’s strong partnership with First Citizens Bank, AMG works with many local, regional, and other national financial institutions to meet the unique service needs of our clients.
AMG knows it is possible for community and condominium Associations to borrow money when necessary. AMG has assisted clients in raising funds for long-term planned capital enhancements as well as emergency repairs. Because of our relationships, we are able to assist clients with the planning necessary to receive bank or private financing if and when the need arises.
Association Taxes
The “tax man cometh” even for nonprofit community and condominium associations. Because AMG has been assisting clients with documenting their tax obligations for more than 30 years, we have the ability to do so efficiently and cost-effectively.
Many community leaders do not realize that associations have options when it comes to filing income taxes. Although virtually all associations must file tax returns, the choices made between an 1120 or an 1120H tax return can mean the difference of paying 10% or 30% of your non-purpose income. AMG can link you with the appropriate tax professionals to help you make the right choices.
Proper planning can in many cases reduce tax liability, enabling community funds to be spent on community projects instead of taxes.
