When you’re part of an Owners Corporation, you’re not just managing a building, you’re managing people’s investments. And one of the most critical components of that responsibility is ensuring the financial health of the strata scheme. That’s where accurate strata accounting comes in.
From budgeting and levy management to tax compliance and financial reporting, Owners Corporations have legal and ethical obligations to get it right. In this guide, we’ll explore what accurate strata accounting really means, why it’s essential, and how a specialist strata accountant like Schofields Accountants can help your scheme avoid costly mistakes and stay compliant.
What Is Strata Accounting?
Strata accounting refers to the specialised financial management required for strata schemes (also called Owners Corporations or body corporates, depending on the state). Unlike traditional business accounting, strata accounting must account for levies collected from lot owners, common property expenses, interest earned, and sometimes rental income (e.g., from rooftop leases or signage).
Accurate strata accounting typically includes:
- Preparation and lodgement of Business Activity Statements (BAS)
- Tax return preparation, even if the scheme is non-profit
- Transparent reporting of levies, interest income, and expenses
- Annual budgeting and forecasting for administrative and capital works funds
- Keeping clean, audit-ready financial records in accordance with strata legislation
According to the ATO, strata title bodies may be required to lodge tax returns if they receive assessable income such as interest or lease payments—even if they are otherwise considered non-profit.
Why Accuracy Matters to Owners Corporations
While strata managers often coordinate the day-to-day finances, the ultimate responsibility for financial oversight lies with the Owners Corporation. Here’s why accuracy in your strata accounting is non-negotiable:
1. Legal and Tax Compliance
Owners Corporations must comply with their financial obligations under Australian tax law and relevant state-based strata legislation. Errors or omissions in BAS or tax lodgements can result in ATO penalties, audits, or financial liability for committee members.
2. Transparency for Owners
Lot owners have the right to access financial records and understand how their levies are being used. Clear, accurate accounting builds trust and reduces the risk of disputes or accusations of mismanagement.
3. Better Budgeting and Planning
From elevator upgrades to roof repairs, strata schemes must plan for both short-term maintenance and long-term capital works. This is only possible with up-to-date and reliable financial data.
4. Audit-Ready Reporting
Strata schemes may be subject to external audits, particularly for larger or more complex plans. Accurate accounting ensures you’re prepared and compliant when that time comes.
Common Strata Accounting Mistakes
Many Owners Corporations unintentionally fall into financial traps due to poor accounting practices, including:
- Incorrect GST treatment on levies or supplier invoices
- Missing or late BAS lodgements, leading to ATO penalties
- Incomplete or inconsistent financial records; making annual reporting difficult
- Budgeting based on inaccurate historical data, causing underfunding or levy shortfalls
- Using a generalist accountant unfamiliar with strata-specific obligations
These issues are more than just inconvenient—they can damage the financial stability and reputation of your strata scheme.
How a Specialist Strata Accountant Can Help
While generalist accountants may offer basic services, strata accounting is a niche area that benefits from industry-specific knowledge. At Schofields Accountants, we specialise in supporting Owners Corporations with precise, compliant, and tailored accounting services.
A dedicated strata accountant will:
- Ensure timely and correct BAS and tax lodgements with the ATO
- Prepare clear, itemised financial reports that support transparency
- Advise on the appropriate treatment of income and expenses
- Keep your records audit-ready and fully compliant
- Help your committee understand its financial obligations and plan ahead
The value of working with a strata specialist isn’t just about ticking boxes—it’s about giving your Owners Corporation the confidence to make informed financial decisions.
Why Choose Schofields Accountants for Your Strata Accounting?
With years of experience working directly with strata managers and Owners Corporations, Schofields Accountants brings deep knowledge of the compliance, reporting, and tax issues that affect your scheme.
As registered tax agents, we handle all aspects of strata BAS and tax lodgements, ensuring accuracy and compliance at every stage. We tailor our services to the needs of your scheme, whether you manage a small residential block or a large mixed-use development.
Our focus is not only on meeting regulatory requirements but on helping Owners Corporations operate with clarity, trust, and financial confidence.
Secure Your Strata Scheme’s Financial Future
Accurate strata accounting is essential—not just to meet your legal obligations, but to build trust with owners and ensure your scheme can fund maintenance, upgrades, and unexpected repairs.
If your Owners Corporation is ready to partner with a trusted expert, contact Schofields Accountants today for professional support with your strata accounting needs.
