Condominium Accounting: Mastering the 2005 Decree

The syndic must use a nomenclature of accounts divided into 5 main classes:

• Class 1: Provisions, advances, subsidies and loans.
• Class 4: Third-party accounts (co-owners, suppliers).
• Class 5: Financial accounts (bank, cash).
• Class 6: Expense accounts (maintenance, electricity, fees).
• Class 7: Revenue accounts (fund calls, interest).

Unlike an individual, the condominium records expenses upon receipt of the invoice (engagement) and not at the time of its payment. Similarly, revenues are recorded upon the fund call. This allows for a real vision of the debts and receivables of the syndicate at any time.

During the annual General Meeting, the syndic must present five standardized accounting documents:

Annex 1: Statement of financial position (Balance Sheet).
Annex 2: Management account for current operations (Expenses vs Revenues).
Annex 3: Management account for works and exceptional operations.
Annex 4: Analysis of the balance of expenses and revenues compared to the budget.
Annex 5: Statement of works and exceptional operations outside the budget.

Reinforced by the ALUR Law, the use of a separate bank account in the name of the syndicate of co-owners is the rule. It guarantees that the condominium's funds are not used for the cash flow needs of the syndic or other buildings.