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QuickBooks file

As a self-governing HOA we’re trying to get all records and files from the management company. The single issue they will not give is the QuickBooks file. First we were told it could be manipulated so we couldn’t have it. To which I reminded them they would always maintain the original file. Now their reply is “We are not required to give a flash drive with the Quick Books file. All necessary association documents were turned over to the association. As Vahalla Estates did not pay for the software, it does not belong to the association. All financial information was turned over in paper copies.”

This is not accurate-they handed some paper, some files on a USB and I continue to request more files as I audit.

Is it true they do NOT have to give us a QuickBooks file? When I create graphics for a client, I include files they don’t have the software to open it, because they paid me for graphics.

3 Responses

  1. Dennis Legere

    Brenda,
    Has the association bought the QuickBooks program? Do you intend to use QuickBooks as your accounting tool? Do you have or intend to get anyone capable of managing the data within the QuickBooks program? if you have all of this then getting the existing QuickBooks data is important to your association, and the data is yours not the management company’s. The last point is most important as even if you do not intend to use the QuickBooks program the data could be easily imported into any other accounting software. Does you contract with the management company have any specific provision relative to electronic data? IF so, what does it say?
    The management company’s refusal to provide the data is a huge red flag that they are trying to hide something. The data is yours’s you are not asking to get a copy of the program. They probably don’t know how to extract the data from the program. Do not give in on this, insist that they extract your data and provide it to you on a flash drive, you can give them a flash drive of sufficient size to hold the data for them to use. If they refuse to provide the data file a suit against them for breech of contract. To have to hand enter all the historical data from the paper copies is an unnecessary burden to you and can be done with a few keystrokes by them. You paid them for the process of their data entry into their program. Like I said big red flag that they are trying to hide something.
    Dennis

  2. Brenda Simon

    Dennis,
    Thank you-again.
    Yes, we will be using QuickBooks (I use it for my business). We’ll purchase a copy for the HOA. I can handle importing.

    In reading their contract nothing excludes or includes electronic. This is from the contract:
    “E-4) Develop and maintain an accounts receivable and accounts payable system to include all revenue and related transactions. Execute the payment and collection of monies as directed by the Board, or Board Financial Representative.”

    I have 2 pending audit discrepancies. I took both to the vendors-one dates back to 2019 which I just sent to the management company. The other is insurance. I’m working through that, but the insurance company today stated they won’t adjust for 2020-21, they will adjust the 2022-23 policy. Management added Directors coverage to the General Liability in 2021 when we’d been paying a second policy for Directors since 2018.

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