The end of the year marks a crucial period in farm management. It represents not only the closing of a cycle, but also an opportunity to assess the financial health of the community and plan for the future.
The closing of annual accounts in property management is more than an accounting process: it is a tool to strengthen management, ensure transparency and build a community that is better prepared to face future challenges.
The process of closing the annual accounts:
1- Compilation and verification of all financial records for the year: thorough review of income, owners’ fees and expenses (maintenance, services and repairs). Ensure that there are no discrepancies and that bank balances and statements match.
2- Owners’ meeting for presentation and approval of accounts: report with clear justification of all data, mentioning achievements (savings in services, improvements made, etc.) and also point out areas where expenses were higher than budgeted.
3- Deviation analysis and action plan: review and interpretation of the results. Understand the causes of major deviations due to unforeseen events, underestimation of costs or lack of control in certain expenses. Proposal of adjustment measures, such as optimising service contracts or readjusting the neighbour’s contribution.
4- Planning for next year: the end of the year not only closes one cycle, but also opens a new one. The review of accounts allows you to establish a more accurate budget for the coming year, anticipate major expenses and set clear financial objectives.
