This will inevitably force your board to either take out a loan or charge special assessments to homeowners. And, if you have any experience with HOAs at all, you’d know that homeowners hate having to pay special assessments on top of their monthly dues. However, as many HOAs lack accounting and finance experience, it can be a struggle to deal with bookkeeping tasks and responsibilities. This can result in financial mistakes that could harm your community. If you need help in this area, it might be time to consider a HOA bookkeeping service. Here’s how they can help ensure your community’s financial health.
- Our firm expands its focus beyond your everyday needs to deliver short-term and long-term accounting solutions that save time and preserve resources.
- Our team comprises professionals with expertise in various fields, including finance, law, property management, and sustainability.
- Advanced accounting software simplifies financial transactions, budgeting, and reporting.
- Our training and development initiatives empower board members with the knowledge and skills needed for effective governance.
- We offer an accounting newsletter with timely tips for growing your business.
- For funds to be moved from the reserve account to an operating account (to pay for capital project invoices for example) Community Financials requires this request be in writing by 2 board members.
Accounts Payable Reporting
- Our tailored strategies and plans are designed to meet the unique needs of your HOA and provide peace of mind to all stakeholders.
- Our team of experienced professionals has a deep understanding of the tax laws and regulations that apply to HOAs.
- It means that the HOA ensures that residents are paying their fees on time.
- COMPASS Property Management, headquartered in Rochester, New York was founded in 1972 to provide property management services to condominium, town home and community associations.
- HOA Assist helps ensure homeowners associations stay in good financial standing at all times.
- You can also use this financial document to compare the HOA’s income and expenses for a given period.
Plus, it’s also the only method that conforms with the Generally Accepted Accounting Principles (GAAP). Accounting is arguably one of the most challenging aspects of managing an HOA community. Yet, HOA accounting remains an integral part of your job as an HOA board member. Understanding Community Association Governing DocumentsThis free ebook will help you understand how, why and when changes are made to your governing documents. By offering these training and development opportunities, ACCU Consulting ensures that HOA board members have the knowledge and skills needed to effectively govern and lead their communities.
Our HOA Accounting Firms Process Works
- When seeking the right HOA bookkeeping partner, look for a service that works for you.
- You can simplify the process, though, if you know what to look for.
- We emphasize the importance of transparent communication within your community.
- The CPA will be able to pull reports directly from the accounting software without taking up your time to run them!
- Lastly, the cash disbursements ledger lists down all of the checks your association has written and issued for the period specified.
- This should show how much money is owed to the association and by whom.
Most homeowners associations hire professional HOA accountants for tax preparation and related tasks. Experienced and knowledgeable professionals who can provide high-quality accounting services to support the financial stability of the community. Regular financial audits or reviews provide an independent assessment of the association’s financial statements, offering an added layer of confidence to homeowners and board members. HOAs are subject to tax obligations, and proper accounting services ensure that these obligations are met promptly and accurately. Condo communities and homeowners’ associations are typically set up as non-profit corporations.
Life is too short to be frustrated by your Community Accounting
Our goal is to help HOAs implement environmentally responsible initiatives that benefit both the community and the planet. You can simplify the process, though, if you know what to look for. HOA taxes are due on the 15th day of the 3rd month for the financial year ending June 30th or the 15th day of the 4th month for the fiscal year ending December 31st. Help HOAs meet their legal and regulatory obligations by providing guidance on relevant rules and regulations. Next, the timing for notification depends on your current management agreement – has it expired, is it ending at the end of the month?
Financial Management Training
The CPA will be able to pull reports directly from the accounting software without taking up your time to run them! The CPA will also check for accounting errors and verify your bookkeeping. Additionally, you can request a “positive assurance” to guarantee the accuracy of your financial reports and confirm the HOA’s financial health. Once you understand the unique features of each bookkeeping method mentioned above, the real work begins.
Direct Access to Accounting Software
ACCU provides continuous support and consultation to help your HOA adapt to changes in state laws and ensure that your governing documents remain up-to-date. Adhering to state laws and Homeowners Association governing documents is of paramount importance for the smooth and lawful operation of your HOA. At ACCU, Inc., we understand the complexities and nuances of legal compliance and governance within the realm of HOAs. We are here to provide expert guidance to ensure that your HOA operates in accordance with both the state laws and the specific governing documents that govern your association. If your HOA doesn’t have these documents in place, ACCU, Inc. can assist in creating clear and enforceable Rules and Regulations. They will also evaluate the effectiveness of your HOA Delinquency Policy and review your budget, income, and expenditures, offering valuable recommendations.
Why is accurate accounting for HOA important?
If these issues are not caught early, they could potentially mess up your finances in the long run. We offer board member orientation programs, financial management training, conflict resolution hoa accounting workshops, and educational sessions on various HOA-related topics. Our training and development initiatives empower board members with the knowledge and skills needed for effective governance.
Transparency
In other words, no accounting records almost always equate to poor budgeting. This is dangerous because boards may spend money the HOA does not have. It can also push the board to make decisions based on inaccurate financial information. When the Board does all the financial management work by themselves, it gives an illusion of better control than having an outside company do the financial management – but it is just that – an illusion. Our state of the art online systems provide transparency, increased control and enhance owner trust.
Download our Articles on How to Start Self Managing &/or How to Avoid Fraud at your Community
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. When seeking the right HOA bookkeeping partner, look for a service that works for you. PayHOA has many years of experience with HOAs of all sizes across the country. Working with different HOAs and navigating each state’s unique laws has helped us to gather a wealth of knowledge.