AAM’s Developer Services department ensures the successful management of new communities from conception through build-out and beyond. Kim Olson and her team
assists our developer clients with the establishment, successful transition and long-term sustainability of various new planned communities. Taking extra care in providing
support to our clients, AAM realized that many new communities struggled with maintaining the necessary cash flow for the association.
Previously, our Builder Billing Department invoiced Developers based on an estimated shortfall or subsidy after the month had ended and financials were generated. However, with the decline in new homes sales this method of billing was no longer providing the necessary funds needed to pay the association’s expenses in a timely fashion. Developer Services recognized that in order to provide our clients with a more accurate accounting of subsidy needs, a cash flow budget was necessary. Cash flow budgets project cash shortages on a monthly basis allowing the staff accountant to invoice accordingly. This billing method may result in a credit to use against future subsidy invoices or a need for additional funds.
On a quarterly basis, your community’s Staff Accountant trues up the cash position of your community to ensure there is enough money to cover outstanding bills, preserve prepaid assessments for future months and maintain a sufficient cash balance for unanticipated expenses, while preventing a surplus of cash to accumulate in the operating account.
As a long-term partner, AAM is committed to providing expert guidance and specialized care to our clients. To discuss your new community or preparation of cash flow budgets contact VP of Developer Services Kim Olson at firstname.lastname@example.org.