Housing Association’s Accounting

The accounting of a housing association is the core of the entire association’s economic activities, encompassing much more than just the preparation of an annual report. It includes regular invoicing of apartment owners, monitoring payments, recording transactions in the accounting software, and if necessary, payroll calculations and submitting tax declarations.

The importance of accounting is legislated in the Apartment Ownership and Apartment Associations Act, which requires financial reporting from every housing association to ensure transparency and accountability. The differences between accrual-based and cash-based accounting depend on the size of the association and its economic activities. Larger housing associations use accrual-based accounting, similar to businesses, while smaller ones may find simplified cash-based accounting more suitable.

Today, many housing associations opt for professional accounting services, offering several advantages. These include access to modern online accounting software that allows real-time financial overviews, more efficient management of invoices and payments, and often lower costs compared to a part-time accountant.

When choosing an accounting service provider, it is essential to consider the specific needs of the housing association, such as preparing utility and other payment invoices, monitoring receipts, invoicing tenants, and financial reporting. All these activities help ensure that the association’s finances are orderly, transparent, and legal.

The adoption of e-invoices and other modern solutions makes life easier for apartment owners by allowing them to receive invoices faster and pay more conveniently. As a result, the accounting of a housing association has become not only mandatory but also a central element in the smooth and efficient management of the association.