Calling All Clients! PayHOA Bookkeeping Service Is Now Available

Yet, HOA accounting remains an integral part of your job as an HOA board member. Billing statements, payment coupons, credit cards, and ACH (automatic withdrawal) are methods that can be used to collect assessments. We process your payroll for free and reconcile the salaries at no extra cost. All your invoices and documents are stored securely in our system so you can access them when you need to. We manage the bookkeeping aspect of renovation projects with multiple contractors.

• You and your clients can examine the income and expense statements to make more informed decisions on future projects.
• Maybe you don’t have access to professional community association management services where you live.
• The CPA will also check for accounting errors and verify your bookkeeping.
• We are able to offer our vendors and homeowners the best in HOA Accounting Services, including auto pay and direct debit options.
• The association cannot operate without prompt payment of their assessments by the homeowners, so delinquent assessments must be addressed and collection efforts made.
• These reports show all of the association’s financial transactions for a given time period, usually on a monthly basis.

The Accounts Receivable is a statement that lists all the money owed to the association. The members say that HOA Accounting Services is a tremendous improvement https://www.bookstime.com/ over financial services from management companies. Accounts payable is the next item to understand when you’re learning how to take care of HOA bookkeeping.

How HOA Bookkeeping Services Can Help Your Finances

We have set out to design our community accounting service to make the entire life… I have received several comments from Homeowners as to the quality and timeliness of your team’s responses and they all have been so positive. It is so nice to have a truly professional approach to the financial end of our Association. CSM provides every HOA board with a dedicated manager that understands every facet of your association. Our Community Support department is ready and able to help homeowners who can contact us via the web, email, or telephone. CSM provides HOA accounting and back-office support to hundreds of associations across the country.

Audits can be expensive, usually costing between $4,000 to $6,000, which is why many HOAs prefer to conduct yearly financial reviews instead. Lastly, the cash disbursements ledger lists down all of the checks your association has written and issued for the period specified. Otherwise known as a check register, this report consists of information such as the check’s recipient, the check date, and a description of the expense. It should also outline the check numbers, chart of accounts numbers, and any related invoice numbers. Your income statement depicts your association’s income and expenses for the period specified (usually for the month). It lists down all your revenues as well as your expenses, deducting the latter from the former to arrive at your net income or loss.

How Much Does Financial Management for a Condo Community or HOA Cost?

Maybe you don’t have access to professional community association management services where you live. There may not be enough business in your town to support a community association management company. Not to mention, you also need a solid understanding of accounting and finance to properly perform HOA bookkeeping.

Some offer full-service HOA management features, while others focus on specific modules. Some have their own laws that dictate what homeowners associations can and can’t use. For instance, even though there are three accounting methods, California law directs that HOAs should use the Accrual Basis when preparing their pro forma operating budget. Your hoa accounting general ledger is where you record all of your accounting transactions following the date of occurrence and a numerical order you set known as the HOA chart of accounts. Life is busy enough let alone adding a condo community or homeowners’ association (HOA) volunteer role to your list of obligations, especially if you are a self-managed community.

Accounting Services for Homeowners Associations

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. 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.

Bookkeeping for HOAs presents different challenges because it involves multiple people and shared interests. Understand their situation and never reveal the status of their financial health to other homeowners in the community. It’s also not recommended to restrict their access to amenities or shut off their utilities during a trying period in their life. 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. Poor HOA financial management can lead to a number of possible consequences both for the HOA and its board.

Auto Pay – Direct Debit

Therefore, you may not be able to push through with any pending legal cases with the homeowner or collect past due balances. One of the best homeowners association accounting rules to adopt is to exercise internal controls. That means not letting a single person have control over every financial department. Ideally, the person who writes the association’s checks should be different from the person handling receivables. Condo communities and homeowners’ associations are typically set up as non-profit corporations. Just like for-profit corporations they have monthly income and expenses.

This refers to any unpaid expenses for the association, such as invoices for repair work, utility bills and municipal fees. Accounts payable reporting keeps the HOA aware of every expense that needs to be paid in the current month. Contact us today to set up an exploratory call with our Accounting Department and retake control of your finances, maintain your association’s stability, and free your volunteers’ time.