Financial management: transparency and stability for your VME

The financial management of a VME is equally essential for the proper functioning of a co-ownership. The Royal Decree of 12 July 2012 introduced a standardised accounting system for associations of co-owners. This system ensures that the VME’s accounting is conducted in a uniform, transparent and understandable manner. The accounting system is based on the principles of double-entry bookkeeping, which guarantees reliable financial management.

The legislator provides an exception for smaller co-ownerships with fewer than 20 units. These VMEs are allowed to keep simplified accounts. However, for both smaller and larger co-ownerships, Syncura has been applying the principles of double-entry bookkeeping for many years, with the aim of ensuring transparent financial management for every co-owner.

In addition to the Royal Decree of 12 July 2012, Article 3.89 of the Belgian Civil Code also imposes several accounting obligations on the syndic. Financial management goes far beyond drawing up budgets and settlement statements, requesting periodic advances, collecting outstanding amounts, and building up a reserve fund.

Key obligations in financial management

Within the scope of financial management, the syndic has several responsibilities that must be strictly complied with:

• Drawing up the budget

Preparing a clear and realistic annual budget is one of the first steps in sound financial management. This provides transparency regarding the expected expenses and clearly shows co-owners what their periodic advances are intended for. Through lean budgeting and continuous monitoring, we ensure a financially stable VME.

• Requesting advances

The syndic is responsible for requesting advances from the co-owners, based on the approved budget. These advances are essential to cover the ongoing common expenses of the building.

• Collection of outstanding amounts

Financial management also includes the proper handling of the collection of any outstanding advances or balances from approved annual accounts. It is the syndic’s task to ensure that every co-owner pays their contributions on time.

• Building up a reserve fund

Building up a reserve fund is an important element of financial management. This fund is used for future unforeseen expenses or major renovation works and is essential for the financial health of the VME, helping to safeguard the co-ownership financially against future challenges (such as the energy transition).

Syncura’s approach to financial management

Syncura applies the principles of double-entry bookkeeping in its financial management, ensuring a solid and transparent financial administration. Through an optimised process, we guarantee speed, accuracy, and full transparency.

• Current account of the VME

Managing the VME’s current account is an important part of financial management. Syncura ensures that the account is managed transparently and that all income and expenses are accurately recorded.

• Working capital

Working capital ensures that the VME has sufficient funds to cover daily operational expenses. Syncura ensures that this capital is managed efficiently and responsibly, so that the VME always has sufficient resources available.

• Permanent working capital

To always have sufficient financial resources to pay all expenses promptly, Syncura works, in addition to the periodic advances for working capital, with permanent working capital. This is a one-time contribution from each co-owner to the VME’s current account, creating an additional financial buffer.

• Reserve fund

The reserve fund is intended for future investments and unforeseen expenses. Syncura ensures that this fund is built up in a timely manner and properly managed, so that the VME is prepared for future challenges.

• Budget

Syncura prepares a detailed budget covering all expected expenses of the VME. This gives co-owners a clear insight into the financial management and ensures responsible financial planning.

• Outstanding amounts

The collection of outstanding payments is an important part of financial management. Syncura ensures that overdue payments are collected quickly and efficiently, so that the VME remains financially healthy.

Common parts and costs

A legally correct allocation of common costs is essential in every apartment building. Syncura bases this allocation on the distribution keys laid down in the notarial statutes or on any later decision of the VME, duly recorded in an amending notarial deed. Each unit (apartment, shop, garage, storage unit, etc.) is assigned “shares” in the co-ownership, based on the net floor area, the purpose and the location of the unit. These shares form the basis for the allocation of common costs. These settlements include, among other things, costs for maintenance of the common parts, repairs and general facilities.

Some units are exempt from certain costs. For example, a ground-floor apartment with direct access from the street may be exempt from contributing to the (maintenance) costs of the lift, as this unit cannot use the lift unless it also has a garage or parking space on level -1.

A thorough study and in-depth knowledge of the statutes are therefore essential for the correct allocation of common costs to the co-owners.

Invoices and statutory obligations

Correct processing of incoming invoices is crucial for transparent financial management. Syncura ensures that all invoices are booked using the correct allocation key and are paid on time, in accordance with statutory obligations. This guarantees accurate and timely handling of all financial transactions within the VME.

Conclusion

Sound financial management is essential for the success and stability of a VME. Syncura ensures that all accounting and legal obligations are met, from preparing a budget to collecting outstanding payments and building up a reserve fund. By efficiently applying the principles of double-entry bookkeeping, Syncura guarantees transparency and stability in the financial management of your co-ownership.

Whether it concerns smaller or larger co-ownerships, Syncura offers a solid and reliable approach to financial management, allowing every co-owner to rely with confidence on a healthy financial future for their VME.