Episode 20: Everything You Need To Know About Financial Statements: Best Practices For A Financially Healthy Strata
About the Episode:
In this episode, Brent and James speak with Isadora Goh, Vice President of Client Accounting for FirstService Residential who shares tips, advice, and red flags when reading financial statements.
Get the Guides:
3 Keys to Decision Making for Strata CouncilsMaintenance Planner Checklist
8 Steps for Going out to Bid
About the Guest:
Isadora Goh
Vice President, Client Accounting – Canada
Isadora oversees the client accounting team responsible for the financial reporting of our Strata division and the management of its $250 million in trust funds. Her team supports the financial operations of over 550 strata corporations and strata related entities, inclusive of sections, types, air space parcels, cost sharing arrangements, and amenity facilities.
She has 15 years of experience in accounting with a background in audit, compliance and tax reporting. She provides oversight on the brokerage’s compliance per the Real Estate Council of BC’s requirements and is well versed in financial compliance under the Strata Property Act.
About the Hosts:
Brent Anderson
Business Development Director, FirstService Residential British Columbia
As Business Development Director, Brent is responsible for the continued growth and strategy of FirstService Residential’s Market throughout British Columbia.
Brent’s professional career in sales began selling souvenirs at Canucks games back at the PNE Coliseum. For the past 15 years, has been closely working with strata managers as a salesperson for various trades, including painting, high-rise window cleaning, and HVAC services.
The sales world is full of cookie-cutter reps who lead with their ego and put their needs ahead of the customers. Not Brent; he is passionate about the needs and goals of his clients and specializes in bringing them peace of mind.
Brent lives in South Surrey with his wife and their Jack Russell Terrier. He is an avid hiker and budding kayak enthusiast.
James Milne
Business Development Director, FirstService Residential British Columbia
As Business Development Director, James is responsible for the continued growth and strategy of FirstService Residential’s Market throughout British Columbia.
James takes a consultative approach to his role, recognizing that having the right fit between a community and its management is crucial to long-term success. Prior to joining FirstService, James worked in luxury hotel management and business-to-business sales.
James has more than 20 years of experience in customer-facing roles and a true passion for customer service. He is a licensed strata manager and has a degree in Business Management.
When not working, James is also an avid mountain biker and serves as the President of one of BC’s largest non-profit mountain bike clubs.
About Stratagize Podcast
Over 1.5 million people live in strata housing in the Province of British Columbia.
Let's face it, you'd rather watch reruns of the nightly news than read the Strata Property Act (And we can't blame you) Still, most people are at a loss when it comes to understanding such an important framework for how many of us live our lives in proximity with one another.
🎙 Stratagize with Brent Anderson & James Milne features conversations with industry leaders and experts who share their knowledge to demystify an industry that impacts the lives of more than 1 out of 3 British Columbians.
Whether you are a council member, owner, investor, or renter, if you're looking for content that will bring value to your strata and help you get to the next level… THIS is it!
Listen to our latest episode, subscribe and rate us on iTunes. 👊
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🚨 STRATA TIP:
Take the backstory into account when reviewing financials. Is the CRF low because a large project was held in past few years? Are you over budget on a line item because of an annualized expense?
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MAIN TAKEAWAYS:
🛠Four main documents: Operating budget, financial statement, balance sheet, operating statement.
🛠Number one advice: Prepare a balanced budget
🛠Provincial Government has introduced legislation for mandatory 10% contribution of annual operating fund to CRF effective November 1, 2023.
💬 QUOTES
“Don't just increase your budget by a set percentage. Take a look at your expenses and build your budget each year.”
MYTH VS FACT 🦄
“Low strata fees are better for resale”
(MYTH)
Lower strata fees mean smaller operating budget and less money for curb appeal and CRF. A building with a higher CRF is a better investment as the purchaser is more likely to be protected from special levies.