Under Section 120 of the Unit Titles Act 2010, the body corporate must establish (in accordance with any regulations) either:
a separate bank account for each of the funds, or
a single bank account in which the respective funds are kept entirely separate and are clearly identifiable.
This requirement makes any financial review or audit significantly easier and more transparent. It also gives unit owners greater confidence in the body corporate’s financial management and reduces the risk of funds being mixed or misapplied.
Does your body corporate operate with the correct bank account structure? Ensuring the operating account, long-term maintenance fund, and any other funds are properly separated (or clearly identifiable within a single account) is a basic but important compliance step that protects both the body corporate and its owners.
Using a widely adopted local accounting platform such as Xero makes life easier for everyone involved. Your accountant can quickly review any transactions or reports of interest and will already be familiar with the system if they use Xero themselves. This reduces the time and cost of financial reviews, improves transparency for owners, and allows the body corporate manager to keep accurate, real-time records that are easy to share when needed.