Common Interest Realty Association Accounting
Common interest realty associations operate at the intersection of real estate, governance, member assessments, reserve funding, vendor contracts and tax compliance. Boards need financial reporting that is accurate enough for owners, lenders, managers, attorneys and regulators, but clear enough to support real decisions.
We help community associations move beyond basic bookkeeping into board-ready financial statements, clean year-end workpapers, defensible tax filings and engagement deliverables that match the association's governing documents and risk profile.
Who We Serve
- Homeowners associations and planned communities
- Condominium associations and residential co-ops
- Master associations, sub-associations and mixed-use communities
- Board treasurers and finance committees
- Property managers and community association managers
- Developers preparing for turnover to owner control
Audit, Review and Compilation Services
- CIRA audits for associations with governing-document, lender, turnover or board requirements
- Review engagements when moderate assurance is the right level of reporting
- Compilation engagements for associations that need CPA-prepared financial statements without assurance
- Agreed-upon procedures for targeted areas such as cash, reserves, assessments or vendor disbursements
- Internal control observations focused on practical board and property-manager workflows
- Year-end workpaper cleanup before an audit, review or tax filing
Tax and Compliance Support
- Form 1120-H versus Form 1120 analysis for homeowners associations
- Exempt-function income and non-exempt income review
- Interest, laundry, parking, clubhouse rental and other non-member income reporting
- Federal and state income tax filings for association entities
- Late, amended or catch-up filing support when prior-year records need attention
Board-Ready Reporting and Reserve Support
- Operating fund and reserve fund reporting support
- Special assessment and capital project accounting
- Assessment receivable, allowance and prepaid assessment review
- Budget-to-actual reporting and annual budget support
- Coordination with reserve study providers, attorneys and property managers
- Management transition and developer turnover accounting support
When a CIRA CPA Is Usually Needed
Associations often need CPA involvement when the bylaws require an audit, review or compilation; when a developer turns control over to owners; when reserves or special assessments become material; when the property manager changes systems; or when the board wants independent visibility into cash, assessments, payables and reserve activity.
Our CIRA Engagement Process
- Scope alignment: confirm whether the association needs an audit, review, compilation, tax filing or targeted procedure.
- Document request: coordinate bank statements, budgets, reserve reports, assessment ledgers, contracts, minutes and property-manager reports.
- Risk review: identify reporting gaps around cash controls, reserve funds, receivables, payables, special assessments and non-member income.
- Delivery: provide board-ready financial statements, tax filings, findings and next-year recommendations.
CIRA CPA FAQ
What does CIRA stand for?
CIRA stands for common interest realty association. In plain English, that usually means an HOA, condominium association, co-op, master association or similar community association that manages shared property and member assessments.
What is the difference between an audit, review and compilation?
An audit provides the highest level of assurance, a review provides limited assurance through analytical procedures and inquiries, and a compilation presents financial statements without providing assurance. The right level depends on state law, governing documents, lenders, board policy and owner expectations.
Should an HOA file Form 1120-H or Form 1120?
That choice should be evaluated each year. A qualifying association may elect Form 1120-H, which generally excludes exempt-function income from gross income, but Form 1120 may be preferable in some cases depending on taxable income, expenses and association facts.
Can you work directly with our property manager?
Yes. We can coordinate with the board, treasurer and property manager so the accounting records, supporting documents and year-end reports are gathered efficiently.
Do you serve associations outside Maryland, Delaware and Florida?
Yes. Kurt Simmons CPA is licensed in MD, DE and FL and serves clients across all 50 states under the CPA mobility framework when permitted by applicable rules.