4 Pitfalls of Association Financial Reporting
Good financial reporting is essential to the smooth operation of every community association. Homeowners and board members alike invest a lot of time and money into their associations, and they have a right to know where that money is going. That way, they can know if their investment is going to the benefit of the community or being squandered on frivolous projects. In addition to the accountability good reporting brings, it also provides an opportunity for management companies to show off a bit. At the end of the year (or however often the community requests) the community manager can stand in front of the association and outline in clear terms the value they brought to the community. With so much riding on these reports, it’s important to get them right. In this article, we’ll outline a few traps you might fall into during association financial reporting and how to avoid them.
1. Missing Information
It is essential that financial reports are accurate. However, if your records are scattered across multiple systems and multiple filing methods, it can be difficult to make sure everything is included. To avoid this trap, many management companies choose to use an all-in-one management and accounting software solution to keep everything in the same place. Condo Manager, for example, allows community managers to keep track of every communication, invoice, payment, and balance of every member or vendor account attached to that association. By keeping everything in the same place and organized via a software solution, there are no issues with missing records when it comes time to compile a report.
2. Wasted Time
Creating reports can be a tedious and time-consuming process. While it is important to spend enough time on these reports to make sure they are accurate, there are a lot of repetitive parts of the process that can be easily automated. There is no need to wrangle complicated spreadsheets and dozens of statements across multiple member and vendor accounts. Software like Condo Manager helps you do this with automatic report generation. Because all the community’s financial information is stored on the same problem, with a single click, community managers are able to generate detailed reports that take into account every aspect of that community’s finances. All the community manager has to do make sure nothing is left out and click print.
3. Unclear Organization
It is the job of the HOA or condo association board to make decisions on behalf of their community. While many of these decisions are financial, most association board members are not financial experts. That’s why they hired a management company to assist them in the first place. It is the job of the community manager, then, to make sure they are well informed on the problems they face. It is important to make sure that reports are well organized and easily understood and well organized according to the needs of each community. That’s why Condo Manager’s reporting features allow you to create custom arrangements, including and excluding data and grouping it into clear sections based on what is most important to your communities.
4. Poor Distribution
Generating fancy reports is well and good, but if the information included isn’t actually being reported they are potentially useless. Condo Manager’s robust distribution and publishing options let you make the most of your reports by getting them into the relevant hands exactly when needed, in the way they are requested, and on a regular basis. After generating a report, all the user has to do is click “print” to generate a PDF copy for print or mail distribution. Alternatively, they can have it automatically sent via email to all relevant parties on a regular schedule with the built-in email functions. Community Managers can even include customized messages created with the built-in word processor alongside thir reports. This feature is especially useful when mailing financial statements to residents and including instructions for the payment process.
Fill in the Gaps with Condo Manager
Avoiding these pitfalls will ensure your communities run smoothly and let residents rest easy that their money is being spent wisely. Working with Condo Manager, community and association managers have all the tools they need to create accurate, organized, and attractive reports for their communities. To level up your reporting, request a demo or give Condo Manager a call at (800)-626-1267.