Recent changes to Florida's condominium and homeowners' association laws are creating a meaningful increase in demand for CPA firms that provide audits, reviews, compilations, reserve accounting, and consulting services. While the statutory audit thresholds themselves have not fundamentally changed, the combination of stricter financial governance, reserve funding requirements, transparency rules, and board accountability has significantly expanded the need for independent accounting services.

Why demand for CPA firms is increasing

1. Greater financial oversight

Following the 2021 Surfside condominium collapse, Florida legislators enacted sweeping reforms that require condominium associations to maintain stronger financial controls and improve long-term financial planning.

These laws require many associations to:

• Maintain more detailed accounting records
• Improve reserve funding
• Provide greater financial transparency
• Meet tighter reporting deadlines
• Make financial information more readily available to owners

As boards become subject to greater scrutiny, many are seeking independent CPA firms to ensure compliance and reduce liability.

2. Mandatory Structural Integrity Reserve Studies (SIRS)

One of the largest changes affecting condominium associations is the requirement for many buildings to complete Structural Integrity Reserve Studies.

These studies require associations to evaluate funding needs for major components including:

• Roofs
• Structural systems
• Fireproofing
• Electrical systems
• Plumbing
• Waterproofing
• Elevators
• Windows

Although engineers perform the physical inspection, CPAs are increasingly engaged to:

• Incorporate reserve studies into budgets
• Validate reserve accounting
• Evaluate funding levels
• Assist with special assessments
• Prepare financial statement disclosures

This has created an entirely new advisory opportunity for accounting firms.

3. Increased audit and review engagement

Florida law continues to require year-end financial reporting based on annual association revenues:

These thresholds apply to many larger condominium and homeowners' associations.

However, even associations below the audit threshold are increasingly choosing voluntary audits because:

• Boards want stronger internal controls
• Insurance carriers often favor audited financials
• Lenders increasingly request audited statements
• Owners demand greater transparency
• New board members prefer independent verification

4. Greater board liability

Florida law has increased board responsibilities.

Board members now face greater personal exposure regarding:

• Reserve funding decisions
• Financial disclosures
• Budget preparation
• Official records
• Fiduciary responsibilities

Independent CPA audits help demonstrate that boards exercised appropriate financial oversight.

5. Website and document requirements

Recent legislation requires many condominium associations to maintain websites containing financial information and official records.

This means:

• Annual financial reports
• Budgets
• Audit reports
• Reserve information
• Board documents

must be produced accurately and on time. These expanded transparency obligations are encouraging more associations to engage outside accounting professionals.

Opportunities beyond audits

Many firms focus only on annual audits, but the fastest-growing services include:

• Review engagements
• Compilation engagements
• Internal control evaluations
• Fraud prevention consulting
• Reserve accounting
• Budget consulting
• Cash flow forecasting
• Internal accounting system reviews
• Assessment forecasting
• Investment policy consulting
• Tax return preparation

Many associations become year-round advisory clients rather than annual audit engagements.

Master Associations represent a major market

Master associations frequently oversee:

• Clubhouses
• Pools
• Roads
• Security
• Landscaping
• Utilities
• Recreation facilities

Annual budgets often exceed several million dollars.

These organizations commonly require:

• Annual audits
• Internal control reviews
• Multi-entity accounting
• Reserve accounting
• Budget consulting
• Investment oversight

Because master associations often coordinate multiple sub-associations, their accounting needs can be significantly more complex than those of a single condominium association.

Market size in Florida

Florida is one of the nation's largest community association markets, with:

• Tens of thousands of condominium associations
• Tens of thousands of homeowners' associations
• Thousands of master associations
• Millions of residents living in association-governed communities

An aging building stock, increasing maintenance costs, rising insurance premiums, and evolving regulatory requirements are driving sustained demand for professional accounting services.  

To capitalize on the surging demand, Sexton and Schnoll recently launched a website geared towards the specific needs of Florida HOA Associations and Master Planned Communities.  

Outlook

The legislative changes enacted after Surfside have fundamentally shifted expectations for financial governance in Florida community associations. While the statutory audit thresholds remain based on annual revenue, increased regulation, reserve funding requirements, digital transparency, and board accountability are causing many more associations to seek independent CPA services. For accounting firms, community association auditing and advisory work is likely to remain one of the strongest niche growth opportunities in Florida over the next decade.