current and near-term cash needs. But knowing the amount of available cash goes beyond just looking at the bank statement or logging into the bank account from time to time. Cash accounts should be reconciled each month, which means taking the balance according to the monthly bank statement and reducing it for any checks that have been written but not cashed yet by vendors. There may also be deposits made into the account but have not yet cleared the bank, thus are not yet reflected on the bank statement balance. While the Budget Variance Report is only one of the numerous reports available to board members, the Balance Sheet and Profit and Loss statements also contain valuable financial information. Understanding financial reporting is no small task but is extremely important for effective management. ERIC J. FUDEMAN, CPA IS A PARTNER WITH THE ACCOUNTING FIRM BLOOM COHEN HAYES LLC. Community Association Lending Contact us. July 2021 CONDOMEDIA 29