FAQs

Strata accounting is a specialised branch of accounting that deals with the financial management of strata properties. It involves the management of trust funds, budgets, and financial records for properties with multiple owners.

A strata accountant is responsible for tasks such as budget preparation, financial reporting, collection of strata fees, managing common property expenses, and ensuring compliance with financial regulations specific to strata properties.

Professional strata accounting services help ensure financial transparency, compliance with regulations, accurate financial reporting, and equitable distribution of expenses among strata property owners. They also help maintain the financial stability and long-term sustainability of the strata community.

Strata fees are typically determined based on the budget prepared by the strata manager of a strata management company. The levies are allocated according to the unit entitlement of each owner, which is specified in the property's bylaws and the registered plan.

Yes, as a strata property owner, you have the right to access and review the financial records of the property. These records should be made available for inspection, allowing you to see how funds are managed and allocated.

A Capital Works Fund (formerly a sinking fund and also referred to as a Maintenance Fund) is a reserve fund set aside for major capital expenses and long-term maintenance of the strata property. Strata accountants manage the Capital Works / Maintenance fund by forecasting future expenses, collecting contributions, and ensuring funds are available when needed.

The Owners' Corporation, comprised of all property owners, plays a crucial role in approving budgets, financial decisions, and selecting strata auditors or strata agencies to oversee the property's management.

To ensure financial integrity, property owners should actively participate in Owners' Corporation meetings, review financial statements, ask questions, and hire a reputable strata agency and strata auditor with experience specifically in strata properties.

Yes, strata properties may have tax obligations. A strata accountant can provide guidance on taxation matters, including the reporting of income and expenses for the property.

If a strata property faces financial difficulties, the Owners' Corporation may need to increase fees, allocate special levies, or seek financial advice from a strata accountant to address the issues and restore financial stability. Strata plans are allowed to obtain loans if necessary, although the pool of lenders does not include major banks.

Please note that strata accounting regulations and practices may vary by location, so it's essential to consult with a professional strata accountant or legal advisor for specific guidance related to your strata property.