Although it operates as a nonprofit corporation, your Association must still operate like any other business from a financial standpoint to ensure that it is able to provide its members with the services they have a right to expect. That means developing a plan each year identifying the services that it will provide, and estimating how much income is needed to pay for those services (the Annual Budget), periodically checking to see how the Association is doing financially against its plan so that corrections can be made if needed (the monthly Financial Statements), and planning for the eventual replacement of major components such as siding, roofs, asphalt, etc. (the Reserve Plan).