Florida Condo Association Year-End Financial Checklist for 2025–2026
By: Rudolph Stewart, CPA (Illinois), MBA, is the founder of Outside Accounting, a firm specializing in financial management and accounting services for Florida condominium and homeowners associations.
📧 Email: info@outsideaccounting.com
🌐 Website: www.outsideaccounting.com
As 2025 draws to a close, condominium and HOA boards across Florida are reviewing budgets, collecting year-end reports, and finalizing reserve contributions. This is always a busy season — but this year, it comes with an important compliance milestone: the January 1, 2026 website requirement under Florida law.
The rule, established under Florida Statute §718.111(12)(g), originally applied only to condominium associations with 150 or more units (excluding timeshares). However, a 2024 legislative amendment expanded the requirement to include associations with 25 or more units. These associations must post certain official records — including financial reports — on a secure, members-only section of their website by January 1, 2026.
While this specific mandate applies to condominiums, many HOAs are voluntarily adopting similar online transparency practices — and may see comparable requirements in future legislation.
Note: This information is provided for general educational purposes only. Statutory requirements may vary based on your association type, size, and governing documents. Always confirm the specific obligations that apply to your association with qualified legal or accounting professionals.
While it may sound like a technology project, it’s also a financial compliance project. Accurate, organized accounting is key to meeting both your year-end reporting needs and your website posting requirements.
Quick Summary:
This Florida condo year-end accounting checklist walks boards and CAMs through essential financial and compliance steps — from bank reconciliations and accruals to 1099s, reserve planning, and 2026 website readiness from an accountant’s perspective.
1. Review and reconcile all bank accounts
Before closing the books for the year, ensure all bank, reserve, and credit card accounts are fully reconciled through December 31st.
– Investigate any outstanding checks or deposits.
– Confirm that all transfers between operating and reserve accounts are properly recorded.
– Save electronic copies of bank statements for the association’s permanent records.
Also, confirm that December activity is complete before closing the year. Payments received or deposited after December 31st should be recorded in the new year to maintain accurate reporting periods.
Accurate reconciliations are the foundation for everything else that follows — including the financials that may later appear on your website.
2. Compare budget to actual results
Review your approved 2025 budget against actual spending. Identify significant variances and document the reasons.
For example:
– Higher insurance or utility costs
– Unexpected repairs
– Underbudgeted landscaping expenses
This review helps your board explain results to owners and improve next year’s budget planning.
Don’t just review the operating budget. Also review your reserves. When was the last time your board compared actual results to the reserve plan? Variance reviews reveal patterns that often repeat year after year. Reserves should be funded in accordance with your adopted reserve schedule or most recent reserve study. If your current funding level is below target, your board should be able to explain why and outline a plan to restore proper funding. The rules around reserves have become much stricter and more complex under recent Florida law.
3. Verify reserve and fund activity
Ensure reserve transfers were made according to your budget or reserve schedule. Confirm the reserve balance matches your financial statements and that no reserve expenditures occurred without proper board approval.
These balances will be important when you prepare your annual financial report and when the association’s records are posted online.
4. Prepare accurate year-end financial statements
Work with your accountant or bookkeeper to prepare clean year-end financials, including:
– Balance Sheet
– Income and Expense (Profit & Loss) Statement
– General Ledger
– Aged Receivables and Payables listings
Having organized financial statements now will save time when you finalize your year-end report or audit, and when you upload required financial documents to the association’s website.
Note: Depending on your association’s annual revenue, Florida law may require an independent CPA audit, review, or compilation of your year-end financial report. Check Florida Statute §718.111(13) or consult your association attorney to confirm your requirement.
4A. Review missing invoices and record year-end accruals
Before finalizing your financials, consider if there are any missing invoices for services provided during the year — for example, December landscaping, maintenance, legal, or utility bills that haven’t yet arrived.
Even if your association files taxes on a cash basis, your books should still be maintained on an accrual basis. This ensures the board has a complete picture of what was earned and spent during the year — not just what cleared the bank.
Accruing unpaid invoices helps:
– Present a true and fair view of year-end expenses and liabilities.
– Prevent prior-year costs from distorting next year’s results.
– Improve budget-to-actual comparisons and financial transparency.
– Aligns your accounting records with your budget for more meaningful performance tracking.
Your accountant can reverse these accruals in January once the actual invoices are received, keeping your books both accurate and clean.
4B. Plan for cash flow and reserve updates
Once the year’s actual results are finalized, use them to prepare a cash flow forecast for the coming year. Forecasting expected assessment income, reserve contributions, and major expenditures helps your board anticipate tight months and schedule projects confidently.
It’s also a good time to update the reserve budget using current vendor quotes and inflation factors. Even if a formal reserve study was completed earlier, refreshing it annually keeps funding levels realistic and demonstrates responsible financial planning.
4C. Prepare for year-end 1099 filings
Associations that pay vendors or independent contractors $600 or more during the year may be required to issue Form 1099-NEC or 1099-MISC by January 31. However, not all vendors qualify — payments to corporations, certain LLCs, and vendors paid entirely by credit card or PayPal are generally excluded.
Review your vendor list now to:
– Verify which payments qualify for reporting.
– Ensure you have current W-9 forms and correct tax identification numbers.
– Confirm who will file the forms (your accountant or the association).
Handling this early helps avoid confusion, late penalties, and IRS mismatches — and reinforces your board’s commitment to clean, compliant accounting.
5. Understand what the website rule means for your financials
By January 1, 2026, most condominium associations will need to maintain a website that includes:
– Annual budget
– Year-end financial report or audit
– Insurance summary
– Notices and meeting documents
– Other official records required under Chapter 718 of the Florida Statutes
If your year-end accounting is behind or incomplete, you may struggle to post accurate information on time. Clean financials now will make compliance easier later.
6. Coordinate with your accountant and website provider early
Your accountant and your website provider will both play a role in your 2026 compliance plan:
– Your accountant can help ensure the financials are ready and properly formatted.
– Your website provider can set up a secure “owners only” section for posting financial documents.
Start the coordination process now so you’re not racing against the deadline over the December holidays.
7. Review old checks and owner credits for unclaimed property
Florida law requires associations to report and remit unclaimed property — such as stale-dated refund checks, credit balances, or deposits that have been idle for five years — to the Florida Department of Financial Services.
Including this review in your year-end process keeps your records clean and ensures compliance with Chapter 717, Florida Statutes (the Florida Disposition of Unclaimed Property Act). Even if your management company or accountant assists with disbursements, the board remains ultimately responsible for ensuring unclaimed property is reported and remitted properly.
It’s a small but important step that protects the association from potential penalties and reinforces your commitment to proper financial stewardship.
8. Maintain two versions of your financial reports
When preparing to post financial documents online, it’s important to understand that not every detail included in the board’s internal reports should appear on the association’s public or owner-accessible website.
The board should maintain two versions of its financials:
– Board version (complete): Includes all details used for financial oversight and decision-making.
– Owner website version (redacted): Includes the financial statements required by law (e.g., year-end financial report, approved budget, reserve schedules), but with confidential or identifying details removed.
What should not be posted publicly:
– Individual owner account details or delinquency reports
– Bank account numbers or full bank statements
– Vendor payment details or invoices disclosing private data or tax IDs
– Employee or payroll information
– Any personal identifying information (PII) such as SSNs, emails, phone numbers, or signatures
Best practice: Keep the full board package stored securely, but prepare a simplified version for website posting that includes only what’s required.
Finally, review your document retention policy. Financial records should generally be retained for at least seven years, while governing documents and audits should be kept permanently.
9. Plan your 2026 accounting calendar now
Before the new year begins, schedule recurring financial tasks for 2026:
– Monthly bank reconciliations
– Quarterly financial reviews with your accountant
– Annual audit or review deadlines
– Mid-year budget progress check
– Website document updates
A well-structured financial calendar helps your board stay proactive, compliant, and prepared throughout the year — without last-minute stress.
10. Re-evaluate vendor contracts
Year-end is also a smart time to review vendor relationships and pricing. Put major contracts — such as landscaping, management, insurance, and maintenance — out to tender every few years to ensure competitive rates and quality service.
The process doesn’t always mean changing vendors; it simply confirms your association continues to receive good value and clear deliverables. Documenting this review also demonstrates fiduciary diligence if questioned by owners or auditors.
Final Thoughts
Now is the perfect time to get your association’s finances in order and prepare for the upcoming 2026 website requirement. With accurate records, timely reconciliations, thoughtful planning, and clear communication between your financial and website teams, your board will be ready to meet both its financial and legal responsibilities.
By Rudolph Stewart, Outside Accounting
Outside Accounting specializes in community association accounting and financial management for Florida condominium and HOA boards.
Disclaimer:
This post is for educational purposes only and does not constitute legal, tax, or audit advice. Condominium and HOA boards should consult qualified legal and licensed accounting professionals for guidance specific to their association’s circumstances.
About the Author
Rudolph Stewart, CPA (Illinois), MBA, is the founder of Outside Accounting, a firm specializing in financial management and accounting services for Florida condominium and homeowners associations.
📧 Email: info@outsideaccounting.com
🌐 Website: www.outsideaccounting.com