The Royal Decree of 12 July 2012 introduced a minimum normalised accounting system for associations of co-owners. That accounting system ensures that the accounts of an association are kept in a uniform manner so that they are transparent and easy for the co-owners to understand. The accounting system is based on the principles of double-entry bookkeeping that are essential for cohesive, true and fair and stable accounting.
However, the legislator has made an exception for smaller co-ownerships, i.e. for co-ownerships with less than 20 lots, that are allowed to file simplified accounts.
Syncura has been applying the principles of double-entry bookkeeping for both these "smaller" co-ownerships and "large" co-ownerships for years, in the interest of transparent financial management for every co-owner.
However it is not just the Royal Decree of 12 July 2012 that imposes a number of accounting obligations on the property administrator; a lot of financial and accounting obligations arise from Article 577 of the Civil Code.
Drawing up a budget, requesting advance payments, collecting arrears and creating reserve capital are just a few of the obligations that the property administrator has to strictly fulfil. After all, you are always working with other people's money.