To help you we’ve put together this list of collections best practices for condo communities & HOAs. We’ll take care of your bill payments and payroll processing, ensuring timely payments and compliance. We’ll also manage special assessment finances, tracking payments and allocations. This report, also called the check register, shows board members the HOA’s written checks. The register has information about the check addressee, the check number, the date of the check, the invoice number, the budget code number, the expense description, the accounts payable report, and the account delinquency report.

• Connect your Bank, Paypal and Square accounts to MoneyMinder PRO to directly download transactions, saving you time and effort.
• This allows HOAs to track all financial obligations and revenues in the period they relate to, which is essential for long-term financial planning and budgeting.
• It shows the current period actual expense, budgeted expense and any variance between the two.
• The following reports are necessary for understanding how much money is coming into and going out of your homeowners association’s accounts.
• Does HOA bookkeeping-as-a-service sound like too much to ask for your self managed HOA?
• Community Financials offers our clients a simple and inexpensive way to avoid paying attorneys for delinquent fees and their costs which they may or may not recover for the association.

Support

At best, this constant transition equals a significant amount of time training new volunteers on HOA processes, including financial duties. At worst, methods are lost altogether and need to be reinvented. Our bookkeepers can prepare your annual federal and state taxes for your HOA for an additional fee. Imagine the peace of mind your board members will feel having people on their team who have seen it all before and are willing to walk them through it. One powerful way to reduce delinquencies is to impact one’s credit score.

Ready to simplify your Community’s Finances?

The board needs to review this at every board meeting to see what action needs to be taken at certain late dates (30, 60 days), such as sending a demand letter or turning the account over to a collection attorney or agency. While we do not conduct audits, we specialize in preparing your HOA financials to Food Truck Accounting be audit-ready. Our team has extensive experience assisting communities under court-ordered receiverships, helping them rebuild their financial structure and regain stability.

I’m Ready to Hand Off my HOA Accounting to Community Financials – Where Do I Start?

We offer the two market leading community management & accounting software used in the industry. We pride ourselves on delivering HOA financial reports and condo association financial statements that are not only timely but also easy to understand. When there’s a system of checks and balances, the association is able to make important decisions regarding homeowner accounts. The community manager should suggest an annual review or audit, which a CPA will perform.

Advanced Accounting and Professional Services

With the professional support of an experienced team along with state-of-the-art technology, even the most inexperienced association members will be able to navigate the complicated waters that are HOA financial management with ease. HOA accounting is probably one of the most complex, and most important, responsibilities of the association board. Preparing financial reports on a regular basis is important for many reasons. They also promote transparency between the board and members or it can also be a law requirement. The frequency of preparation of HOA financial statements may vary depending on state laws, community bylaws, and the size of the association. You’ll have direct access to our team for any questions or concerns about your hoa bookkeeping HOA accounting services or condo association financial management.

However it is not designed for HOA or Condos and does not offer online functionality for owners to make payments or see community documents. Moving from manual invoice management to an online software will help with transparency, risk management and error reduction. The HOA acronym stands for “homeowners association” – an organization that is responsible for creating rules and maintaining order in the community it represents. For multi-unit buildings accounting the term is “condominium association” but its function is the same – the Board (comprised of volunteers) collecting dues from members that are to be spent on maintenance and for the greater good of the community. Homeowners association accounting is a key part of HOA management.

Which Accounting Method Is Recommended for HOAs?

Board member positions are not permanent and having a dedicated team to provide all of the bookkeeping and accounting ensures that you never have to find a new person to do it every time a volunteer board member’s term is over. By outsourcing your bookkeeping to professionals with expertise in HOA accounting, you can rest assured that your books will be accurate. And, although HOA board members can have the skills to handle your HOA finances, trusting an affordable expert can ease the burden on a volunteer, freeing them up to handle other day-to-day tasks of HOA management.

• Many associations turn to expensive management companies to shoulder some of this load.
• This includes the same services as a compilation and also has the CPA take an analytical look at the association’s financial records.
• In some cases, the organization managing accounting and budgeting for an HOA won’t be the board itself, but rather an accounting firm called in for financial assistance.
• Empowered with this solution, HOA board members can step up their accounting performance without retraining themselves to become accountants.
• In most cases, payment is not made immediately as in a regular cash transaction, therefore, the need for recording payments that are owed to the HOA.

It’s important to become well-versed in all accounting aspects to better perform your duties in an HOA. Just as good accounting can simultaneously make HOA board members’ jobs easier and help their organizations perform better, failures of accounting or financial reporting can prove both time-consuming and damaging. Tracking down a financial error in HOA financial statements based on paper records or offline spreadsheets can take days, frustrating board members and raising questions. Make invoicing homeowners a breeze with automated invoicing for dues, fees, fines, and late fees. Homeowners will LOVE the ability to pay online and set up autopay. Our HOA software automatically writes invoices and payments to your ledger, making generating reports for unpaid dues and fees seamless.