There’s no need for your board members to spin their wheels learning to become a bookkeeper when we can do it for you. And we’re delighted to announce our latest offering, our HOA bookkeeping service. That’s why we deliver error-free books and reports on time every month.
#6: Strategically Use Technology to Automate Accounting Tasks
However, the accrual method is generally recommended for HOAs with more complex financial activities. If you find it too much of a struggle trying to manage your homeowners association’s finances on your own, it may be time to outsource those services. Nothing beats the convenience and expertise you have access to when you QuickBooks trust your HOA’s or condo’s bookkeeping/accounting to Community Financials. Even for volunteers with extensive accounting experience, HOA bookkeeping has unique requirements and offers different challenges. With our combined experience of over 50 years in management, we have truly seen it all, which is why we’ve launched a bookkeeping service in addition to our existing solutions. Whether managing your books, keeping you prepared for audits and tax time, or even preparing your organization’s tax return, we’ve got you covered.
Add and Deduct from the Right Accounts
- Communicating with boards is also a key part of any association manager’s job.
- Homeowners have the right to readily available budget summaries and reserve information.
- That means you only report transactions when you pay for them or receive payment for them.
- The following four condo / HOA financial reports are vital tools for protection of association assets, control and planning.
- Additionally, we support the Board of Directors and Management in effectively coordinating with external auditors to successfully complete annual audits, promoting efficiency and adherence to regulations.
Don’t use “Events Income” one year and then “Income from Events” two years later. Some HOA bylaws require yearly audits, while others only require one every three or so years. Audits can be expensive, usually costing between $4,000 to $6,000, which is why many HOAs prefer to conduct yearly financial reviews instead. We invite you to set up a fifteen-minute exploratory call with one of our financial experts to answer questions or address concerns.
HOA Collections Processing
A homeowners association functions in very much the same way as any business organization. Though it doesn’t exist to earn a profit, an HOA does earn revenue and incur expenses, as well. The HOA board has a responsibility to protect the association’s assets and manage its finances. Therefore, you should practice proper accounting and financial management to ensure your HOA remains in good financial condition. Our HOA accounting system is designed to streamline and simplify the complex financial management process for HOA’s by track income and expenses, create and manage budgets, generate reports, and much more. HOA Books provides specialized HOA accounting services and condo association financial management designed to simplify your community’s finances.
From essential reports and accounts payable best practices to webinars dealing with collections during a pandemic, Community Financials has got you covered. The best part is that effective HOA accounting doesn’t have to add work to your to-do list. Comprehensive association management software hoa bookkeeping can automate many of your regular accounting tasks, as well as making storing and sharing your financial records much simpler. Many of the features outlined above, such as quick report generation, automated account reconciliation, and communication portals, are seamlessly integrated into Buildum’s platform. We’ve put together seven accounting best practices that all community association managers need to know about. Equipped with this know-how, you’ll be ready to set up your association with a sound financial foundation, set expectations with HOA boards, and be prepared for any surprise expenses that could pop up down the road.
- We offer a comprehensive range of financial services tailored specifically to meet the unique needs of your community.
- Furthermore, it combats financial dishonesty within the board or among employees.
- Explore and consider investing in tools to automate many of these routine activities.
- If they find any discrepancies, they will point them out in their final audit report.
- Using the Cash Basis of Accounting, you record income and expenses when money changes hands.
- This change is good for both the association and volunteers, but it comes with challenges as well.
You may be skeptical of working with a company not located in your area. However, you already receive a lot of remote services from credit card companies, utility companies and banks. By overcoming the top 5 issues that self-managed communities encounter you can have a great experience that meets or exceeds that of communities that pay for Bookkeeping for Veterinarians full management at a fraction of the cost. Well, as you may have already discovered, there are many things that can go wrong – which makes for a logistical nightmare if not managed properly. Making things worse, the world is now in the second year of the Covid-19 pandemic, complicating HOA accounting and collections processes even further.
Homeowners Association Annual Audit
Instead, you’ll want to focus on creating a streamlined system so that all the important players can easily be kept up to date in between meetings. A communication portal allows board members to privately share and access documents at any time, allowing you to effortlessly get everyone up to speed on the most important issues facing your association. If your association doesn’t have a reserve fund just yet, you should prioritize setting one up—before you encounter any surprise expenses. While there is no magic formula that can tell you exactly how much money to keep in a reserve fund, it’s a good idea to make sure you’re regularly funding this account as part of your approach to association banking. Its funds are earmarked for non-routine expenses, such as capital projects or emergency repairs. It’s different from an operating fund, which is an account where the money is used to cover the day-to-day expenses needed to keep the association up and running.
If you only need help with accounting, though, it might be better to seek help from an accounting firm, CPA, or a financial management company. There’s no shame in asking for help, especially when it comes to a subject as difficult and confusing as accounting. Many HOA management companies offer accounting and other financial services as part of a package deal. Like our software, our bookkeeping service offers top-notch accounting security.