In this episode, host Geoff Warnock delves into the intricacies of HOA financial statements, illuminating the differences between cash, accrual, and modified accrual accounting systems. He emphasizes the importance of homeowners understanding these methods to ensure accurate financial reporting and budgeting. Geoff illustrates how different accounting bases affect HOA audits and financial health insights. He encourages listeners to review their HOA’s financial reports and engage with the treasurer or accounting personnel to verify financial procedures. By grasping these concepts, homeowners can foster better communication and transparency within their HOAs, ultimately contributing to more effective financial management.