HOA Accounting Requirements to Stay Compliant

This can start with generic accounting software—thinkQuickbooks—but you really start to see time savings and ROI with tools that are purpose-built for association and property management. For example, CondoWorks can automate the accounts payable process while Alliance Association Bank seamlessly integrates your banking and accounting platforms. Services like Axela Technologies can even help you handle accounts receivable and collections.

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Often, you’ll be able to see more benefit from accounting tools that are integrated into a broader system for managing HOAs. The key is to ensure that your HOA or condo association is receiving the most efficient features and services for its needs. When you have the most effective systems in place, the financial management service for your HOA or condo ends up paying for itself. As a board member you have a fiduciary responsibility to exercise due care and diligence when overseeing the community and its funds. The following four condo / HOA financial reports are vital tools for protection of association assets, control and planning. Timely https://www.bookstime.com/ reports also help them effectively allocate funds for projects and maintenance.

The Financial Responsibilities of a Small HOA

Software should make it easy to track and categorize every expenditure. This detailed oversight helps in budgeting and financial planning, making it easier to allocate funds efficiently in a way that supports the association’s goals. Community Financials provides expert bookkeeping and financial reporting for HOAs, Condominiums, and POAs hoa bookkeeping nationwide, ensuring fund security, transparency, and effective communication. Experience the difference with our professional financial services designed specifically for HOAs and condo associations.

Who do I contact if I have questions about my association?

The finance department will then get the bank statements and go over the deposits and checks. The finance department’s main goal is to maintain an accurate, consistent record of the association’s financial transactions. The CPA will compile bookkeeping the financial records and use basic accounting to make sure the financials were kept correctly. They may take certain steps to correct entries before preparing the report.

Managing HOA Reserve Funds: Best Practices For Board Members

• As our client, you’ve allowed us to collect your dues, generate your financial reports, and pay your vendors from our platform, among other important responsibilities for a self-managed HOA.
• When it comes to HOA accounting software, PayHOA is the easy-to-use software solution — especially when transitioning from less robust options like Quickbooks for HOA management.
• There’s no shame in asking for help, especially when it comes to a subject as difficult and confusing as accounting.
• With a broad toolkit of features, it can streamline almost all of your community association management tasks, from day-to-day bookkeeping and operations to strategic marketing and vendor management.
• HOAs rely on their management companies to reconcile their accounts, track every transaction, and prepare them for tax season.

Beyond that, HOAs can also expect a same-day deposit of collected receipts, account reconciliations, tax services, and payroll services. The management company provides a number of accounting services in addition to its remote HOA management services. This includes customized financial reporting, dues collection and delinquency reporting, payment processing, bank reconciliation, annual budget preparation, and tax filing. The right bookkeeping service should use industry-specific HOA accounting software that streamlines financial management. Features like online payment portals, automated invoicing, and real-time access to financial reports save board members time and improve communication with homeowners. These types of integrations streamline operations by automating the flow of information between systems, reducing manual data entry, and minimizing the potential for errors.

• HOAs should look for user-friendly software with automation features, strong reporting tools, security compliance, and integration with other HOA management functions.
• HOA accounting is the financial backbone of any homeowners association.
• Using dedicated HOA accounting systems offers significant advantages over traditional manual methods or generic tools.
• Finding the right HOA accounting software can significantly streamline these processes.
• Employing your software’s state-of-the-art system, REA offers bank reconciliation services that brings meticulous accuracy to your finances.

#3: Conduct Regular Audits and Reports

You’ll need to prepare some information before you can create your HOA balance sheet. Note that if you use QuickBooks or another financial management software package, you should be ready for this task—if your QuickBooks data are up to date. In cash-basis accounting, you record income when you receive it and expenses when you pay for them. This method is easy to understand, simple to administer, but can’t always do the best job of depicting your community’s financial affairs over time. Some small HOA software providers offer free customer plans, but these tend to contain extremely limited feature sets.