Should home owners association be on cash or accrual basis?

Depending on the nature of the association’s business profile — commonly, a non-profit corporation — there may be guidelines that exist for that profile.
Generally, best practices dictate that financial records for associations be kept using an auditable basis, so that regular audits can confirm the transparency of the record keeping.
One method is modified accrual basis, meaning that all assessments are credited when due, and expenses are posted when paid. This method allows a more consistent reflection of the status of assessment payments, which as the only (major) source of income for the corporation, may be the most important line item to track.

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