What options are available for electronic payments of HOA dues?

An HOA can use bank transfers or auto-debit, ACH or electronic checks, or a third-party service provider for electronic payments of HOA dues.

What expenses should be included in an HOA budget template?What expenses should be included in an HOA budget template?

The following sections typically appear under the 'expenses' portion of the HOA budget: Administrative expenses, maintenance expenses, utilities, and fixed costs.

What is included in an HOA accounts payable report?

The components of an HOA accounts payable report are as follows: Vendor names, the amount your association owes to each vendor, how long you have owed the debts to each vendor, and whether any payments are past due.

admin, Author at HOA Management Software

Is There A Limit When Increasing HOA Fees? What’s The Basis?

admin on September 22, 2021

Increasing HOA fees are a huge pain point for many members of an HOA-run community. But, can an HOA board even legally raise the fees?

Increasing HOA Fees: It All Starts With Budgeting

To truly grasp the need for fee increases, you must first understand how homeowners associations work. Homeowners associations exist to maintain the community and protect property values. This includes coordinating and paying for various expenses such as landscaping, maintenance, repairs, and the like. And the money used to pay for these expenses comes from the homeowners, who automatically become members of the HOA when they purchase a home in the community.

But, how exactly do HOAs determine how much to charge homeowners?

Every HOA community is run by a set of elected board members who are responsible for creating an annual budget. They do this by anticipating the expenses for the coming year based on historical data and a number of other factors. Once they determine how much the HOA will need for the coming year, they will divide that among the homeowners in the community, including themselves. Whether or not the amount is divided equally or based on a percentage will depend on what your governing documents say.

This is how an HOA board calculates its regular dues or fees.

Why Would an HOA Need to Increase HOA Fees?

The HOA board repeats the process of creating a budget and determining the fees every year. As such, changes will naturally occur. For owners, the idea of increasing homeowners association fees may be unwelcome. But, there are a couple of possible reasons for a dues increase.

1. External Economic Factors

This refers to factors beyond the HOA’s control, such as inflation, wage increases, and the rising cost of goods. Although your association may not directly utilize labor or materials, your vendors surely do. And, if your vendors hike up their rates as a result, your HOA will certainly follow.

2. Not Enough Reserves

Another reason why your board would need to update HOA fees is to meet the right reserve level. During the budgeting process, your board will need to allocate funds for operating and administrative expenses. A portion of the funds, though, should also go to your reserve fund.

The reserve fund is an account designated for major repairs and replacements in the future or for unexpected costs that arise. Associations must meet a certain percentage in their reserves (obtained through a reserve study) to have what is considered a healthy reserve level. Maintaining the proper reserve level will eliminate the need for special assessments when major replacements or repairs inevitably come up.

If you don’t have well-funded reserves, the need to levy special assessments or increase regular dues will also arise. It just means you will have to charge a significantly higher fee to meet your budget deficit.

Increasing HOA Fees: What Do State Laws Say?

Even though an HOA board can raise dues according to their budgetary needs, they don’t always have unlimited freedom in this aspect. Some states restrict fee increases or limit how much a board can charge on a yearly basis. There are also laws that require boards to obtain approval from the membership if they want to increase fees by a certain percentage.

For instance, according to Section 33-1803 of the Arizona Revised Statutes, homeowners associations are not allowed to raise fees by more than 20 percent per year without getting a majority vote from the membership. Since state laws can vary, though, it is best to check with your legal counsel before taking action.

For board members, it is important to know these limits to avoid potential liability. For homeowners, it is important to know these limits to keep the board in check. But, it is equally vital that owners understand that dues increases are sometimes necessary to keep the community in good condition.

Increasing HOA Fees: What Do Your Governing Documents Say?

Sometimes, state laws remain silent or defer to an association’s governing documents for fee increase regulations. You will usually find such limitations within your CC&Rs, though they are more common in older developments than newer ones. No two HOAs are exactly alike, so the restrictions in one community may differ from yours. More often than not, an association’s CC&Rs will limit increases by a fixed percentage or a dollar amount.

Homeowners may feel relieved to know that their association has such limitations in place. But, when these limitations are too extreme, it can hurt the community in the end. When the board can’t collect the necessary funds because of the restriction, it may not meet the budget. This will force the board to cut corners or eliminate certain expenses altogether. The community and its common areas will then inevitably deteriorate, causing curb appeal to fall and property values to plummet.

How to Avoid Increased HOA Fees

One of the most effective ways to avoid increasing HOA fees is to budget smartly. An HOA board should not allocate more funds than it needs to pay for expenses. No frivolous spending.

It also helps to actively look for ways to save money without sacrificing quality. You can do this by investing in energy-efficient systems. Even adopting a simple schedule for sprinklers and making sure to turn off the lights when not in use can save you money in the long run.

Additionally, your HOA board should do its due diligence when picking out vendors. Don’t just go for the first vendor you see — nor is it wise to only go with the cheapest one possible. Send out a request for proposal and examine each candidate closely. Weigh out their fees against the services they offer. You can also try asking for a discount, especially if you have been working with the same vendor for years.

Finally, while it may not seem like it, investing in HOA management software can help you save money, too. HOA software comes equipped with sophisticated accounting and financial management modules that can analyze your spending. This will make it far easier to see where your HOA is overspending.

Part of the Job

Increasing HOA fees are simply a normal part of living in an HOA community. As a board member, it is your job to ensure the proper maintenance of the common areas. If that means having to raise dues, then so be it. You might get some pushback from homeowners, but it is important to clearly explain to them why the increase is necessary. Remind owners what the fees are for and that low fees don’t always benefit the association.

Are you having a hard time with budgeting and calculating fees? Do you need accurate reports that analyze your HOA’s spending? Condo Manager can help with all that and more. Call us today at (800) 626-1267 to learn more about our software or contact us online to get a free demo.

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How Helpful Is It For The BOD To Process Electronic Payments For HOA Dues?

admin on September 9, 2021

Dues collection is often a pain point for many homeowners associations. If you struggle with this aspect of community management, setting up electronic payments for HOA fees may be the answer to your problem.

The Benefits of Using Electronic Payments for HOA Fees

Homeowners have an obligation to pay dues to their association, and the HOA board is responsible for collecting them. While there is nothing wrong with pursuing the traditional method of collecting dues, there are a few key benefits that an electronic setup offers.

1. Save Time

Online HOA dues payment is a time-saving option for both residents and the HOA board. The traditional way of dues collection — which involves mailing physical checks, recording them one by one, and then depositing them — is a time-consuming process. Using electronic means to pay and collect dues can save your treasurer a lot of time.

2. More Convenient for Everyone

When you utilize electronic payments for HOA fees, it is simply more convenient for all parties involved. Your HOA board does not need to manually process and deposit checks, while residents can pay their dues in an instant from anywhere with an Internet connection.

3. Reduce Instances of Late Payments

Homeowners miss payments all the time for any number of reasons. Sometimes, they don’t have time to write and mail in their checks. Other times, they simply forget. An HOA online payments system, though, can greatly reduce instances of late payments.

Depending on the platform you use, you can automatically withdraw payments or just make it generally more convenient for owners to pay their dues. Not having to physically write and mail in their checks can have a big effect on reducing delinquencies. This is beneficial to both the HOA and homeowners. With on-time payments, homeowners avoid incurring late fees and the HOA doesn’t have to worry about a budget deficit.

4. Track Payments Easily

Another benefit of electronic payments for HOA fees is you have an easier time tracking all the payments. Because everything is electronic, you can simply gain access to the online database and see which homeowners have not yet paid. It is also faster to pull up payment histories and records in case there are any disputes.

Selecting a Platform for Electronic Payments for HOA Dues

Today’s technology has made a wide range of options available for online payments. But, how do you know which one best suits your association?

Bank Transfers or Auto-Debit

There are two ways HOAs can use bank transfers to collect HOA dues online. The first is to have residents manually transfer money from their account to the HOA’s account. The second is to set up an auto-debit or auto withdrawal system.

If you go for the second option, you must check with your local bank to know whether there are any fees involved. Some banks charge setup fees or miscellaneous fees for this service. Though, if your HOA has a strong enough relationship with your bank, they may consider waiving these fees for you. It is also a good idea to ask for a sample of the reports you will get. This way, you can determine whether the reports are compatible with the software you are currently using.

Many associations use automatic withdrawals, and homeowners are fine with it because it is the same system used in many other services and utilities. But, that does not mean your board should let its guard down. Make sure to still oversee the entire process to catch any accounting errors immediately.

ACH or Electronic Checks

Automated Clearing House (ACH) payments are electronic checks that homeowners can use to pay their dues right from their checking account. With ACH checks, there is no need to write physical checks. Both ACH checks and wire transfers are bank-to-bank processes, though the main difference is that wire transfers are instant and ACH checks take longer. This is because ACH checks have to go through a clearinghouse, so payments may take up to three (3) days to appear in an account.

Third-Party Service Provider

If you would like to remove the bank from the equation, another option is to use a third-party service. There are many HOA website providers that come with an HOA payment portal. Several HOA management software also comes with built-in payment systems. If you want residents to pay HOA with credit card or debit card transactions, most providers offer those, too.

When deciding which provider to use, don’t just go with the first or cheapest option you find. Weigh the features they offer against the cost of the service. Make sure they have proper security measures in place to keep your HOA’s and the residents’ information safe and private. Find out how their customer support works in case a problem occurs (which can happen). Checking reviews is a good place to start.

What to Consider When Choosing an HOA Fees Electronic Payments System

Not all homeowners associations have the same needs and resources. What might work for one community may not necessarily be the best for another. Before you make a decision, take the following considerations into account:

1. Fees and Other Costs

For most associations, the first factor in the decision-making process is cost. How much will this service cost the association and its members?

As previously explained, partnering with a bank may come with a fee, whether the fee is for setting up the service or for every transaction. Talk to your local bank to know what methods they have available for your HOA. If you have a lot of owners signing up, they may be able to waive the fees entirely.

A third-party service provider might not have transaction fees, but it will require a sizable investment amount. Thus, this option will obviously be the most expensive one, though it usually does come with other features that make the product worthwhile.

2. Ease of Use for Homeowners

The entire point of using an electronic payment system is to make it more convenient for everyone. As such, you should consider the users. The system should be easy enough for homeowners to navigate, so much so that they will actively choose to use it over traditional methods.

You should also obtain homeowner feedback before actually migrating to an online system. For some communities, i.e. those with less tech-savvy residents, electronic payments may not make sense. You can also consider offering an electronic method while still retaining the traditional method of paying dues.

Bank transfers are simple enough, and most people already use them for other payments. But, if you adopt a third-party service, you must teach owners how to pay HOA fees online. Perhaps you can schedule an orientation of sorts to help them get familiar with the portal.

3. Accounting and Bookkeeping

Dues collection makes up a big part of your association’s accounting. Thus, you should make sure the option you choose can be integrated into your accounting and bookkeeping system with ease. If you currently use accounting software, ask your bank or third-party service provider to send you a sample of their report. This way, you can check whether the report can be uploaded without error.

On the other hand, it may be smarter to go with an accounting system or HOA software that already offers online dues payments. HOA management software is more comprehensive and comes with all the bells and whistles your board will need.

A Simple Yet Sophisticated Solution

Clearly, both your HOA and its members will benefit from adopting electronic payments for HOA fees. The hard part, though, is choosing what platform to use among all the options available. Although bank transfers and ACH checks offer their fair share of advantages, HOAs have more to gain from an HOA management software.

For that, Condo Manager has got you covered. We offer HOA software for self-managed associations and management companies alike. Call us today at (800) 626-1267 or contact us online for a free demo.

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Should Early Payments Of HOA Dues Be Encouraged?

admin on August 25, 2021

When it comes to dues collection, late payments seem more like a common occurrence than early ones. But, should early payments of HOA dues even be encouraged?

Should You Allow Early Payments of HOA Dues?

Members of homeowners associations have an obligation to pay dues to fund the maintenance needs of the community. These dues can cover a variety of expenses, including but not limited to insurance premiums, landscaping, management fees, cleaning services, and security services.

All homeowners must pay these dues regularly, even the members of the HOA board. The fee amount is determined by the HOA board based on the planned annual budget and calculated according to the provisions of the governing documents. Owners must follow a payment schedule — be it monthly, quarterly, or annually. Those who miss the deadline can face penalties in many forms, though it typically involves late fees and assessing liens against the owner’s property.

You have probably heard of late payments and delinquent accounts in homeowners associations. It happens more often than you think. But, what about early payments of HOA dues? Should your HOA allow those? Should you charge a penalty for HOA dues early payments?

Early payments can actually be a good thing for the association. Not only do you get a bigger and more immediate influx of cash, but you also have fewer owners to worry about come collection time. Of course, while you can encourage early payments of HOA dues, you must avoid demanding or requiring it. Keep in mind that your governing documents will have a set deadline for dues payments. As such, even if owners do not pay early but still follow the deadline, you likely have no power to penalize them.

Monthly vs Quarterly vs Annual HOA Dues

Your association’s governing documents should tell you everything you need to know about dues obligations. This includes how often owners have to pay. Some associations allow owners to choose their own terms — monthly, quarterly, or annually. Meanwhile, others have a preferred or set term.

But, what if your association is still deciding on a payment schedule or has plans to amend it? Which option is the best? Let’s take a look at the pros and cons of each style below.

Monthly Setup

The monthly payment setup is more favorable to members because it allows for smaller budgeting. It is much easier to find $200 in their household budget every month than it is to find a lump sum of $2,400 at the start of the year. After all, many owners are likely salaried employees or are living paycheck to paycheck.

On the association’s side, a monthly payment setup can give you the ability to accelerate payments, provided your governing documents allow it. This way, if a member fails to pay one month, the HOA can accelerate the payments for the remaining months in the year. Your association is not afforded this remedy when it comes to annual collections.

However, this option also has its drawbacks. For one thing, your association will incur more administrative costs, such as the cost of sending out payment notices and account statements. You also need to send out delinquency notices if you have any delinquent owners in your community. From the members’ perspective, monthly payments give way to more late fees because there are more deadlines to miss.

Quarterly or Annual Setup

A major advantage of quarterly or annual payments is that it gives your association more money earlier in the year. This can act as a buffer in case you have delinquent owners. If you do have delinquent owners, annual or quarterly setups provide you with more time to go after them as well. For instance, if a member misses the deadline for a quarterly payment, you have three months before the next HOA payment is due, giving you time to collect.

In addition to this, quarterly or annual payments can also help reduce your administrative expenses. Less frequent payments mean fewer transactions, which means less frequent notices and letters as well as less work for the treasurer.

The downside, though, is that owners tend to have a harder time allocating money for a huge one-time payment. As previously explained, annual setups also don’t allow your association to accelerate payments.

Can You Offer Discounts to Encourage Early Payments for HOA Fees?

Some associations offer discounts to owners who pay their dues ahead of time.

While this can certainly entice more owners to pay earlier, it can also be misconstrued as penalizing those who choose not to or lack the money to do so. Again, this circles back to your association’s governing documents and whether or not your board has the authority to impose such a discount.

Moreover, every owner has to pay a set amount as determined by your budget. Discounting HOA fees early payments would mean your HOA has to collect less than what owners owe. If you choose to raise dues for those who don’t pay early instead, members might complain and claim discrimination. In some states, like Florida, it is even prohibited to offer discounted dues.

Similarly, you should not penalize someone who chooses to pay monthly instead of quarterly or annually if your documents allow monthly payments (and vice versa). Sure, quarterly and annual payments have their benefits, but your governing documents must take precedence. If you wish to only allow quarterly or annual payments instead of monthly payments, amend your documents first.

The Exceptions to the Rule

Monthly payments tend to involve more work, particularly for the treasurers of self-managed HOA boards. These treasurers have to prepare and send more frequent notices as well as make more frequent deposits to the bank.

If your board has a similar problem and would like to charge a fee for those who pay monthly as opposed to quarterly or annually, you may be able to justify the fee if it will cover the cost of processing the payments. Some boards also hire a bookkeeper or accountant to take over this kind of work, and the cost of their salary has to come from somewhere. As with everything else, you must first check your governing documents to see whether you can use this approach.

How to Help Your HOA Treasurer

Self-managed associations typically have a more difficult time with dues collection. You can divide the treasurer’s workload, though, by adopting one or more of the following strategies:

Assign a co-treasurer to help prepare notices, collect dues, and deposit payments
Assemble a finance committee to assist the treasurer
Hire an accountant or bookkeeper
Hire an HOA manager or management company
Use an HOA management software

Invest in Good Software

Early payments of HOA dues are great for the association and should be allowed. But, that does not necessarily mean you should actively look for ways to make owners pay ahead of schedule. Sending an encouraging letter may be acceptable, but imposing penalties on those who do not pay early is crossing the line.

Collecting monthly payments and delinquent dues are huge pain points for board treasurers. Easily keep track of your association’s finances with the help of an HOA management software for self-managed associations. Call Condo Manager today at (800) 626-1267 to learn more or contact us online for a free demo.

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What Should An HOA Budget Template Have?

admin on August 12, 2021

Every homeowners association relies on a carefully crafted budget for its yearly expenses. But, what does an HOA budget template look like? And what should it include?

What Is an HOA Budget Template? Why Is It Important?

Homeowners associations operate on an annual budget usually prepared by the HOA board or the budget committee. This budget serves as a guide that the board will use for the coming year’s expenses. Additionally, it is from this budget that homeowner dues are calculated.

It’s easy to say that an HOA budget is important. But, what exactly makes it so essential to a homeowners association?

First of all, the HOA budget has a direct impact on the association’s finances. Any board that uses a “go with the flow” approach to its expenses is destined to drive its HOA into financial ruin. The budget acts as your board’s guide — letting you know what you should spend money on and how much. This ensures that you don’t spend too much on a single line item and run out of money for other necessary expenses.

Secondly, the HOA budget allows you to determine how much to charge owners in dues. Without a template, you may end up charging too little or too much, which are both equally bad. Charging too little will put your association in a deficit and force you to levy special assessments. On the other hand, charging too much could tempt you into spending more money than necessary, simply because the funds are available.

A budget template also makes it easy for the board to plug in amounts for the expenses. This allows for a smoother and stress-free budget planning session for everyone involved.

Finally, the HOA budget template allows for transparency in your association. Homeowners have a right to know where their money is going, and the budget addresses that. In some states, the board is even required to present the budget to the membership for ratification. North Carolina, for instance, has such requirements for both HOAs and condominiums.

What Is Included in an HOA Budget Template?

You already know that the HOA budget plays a critical role in an association’s finances. Of course, there is a difference between saying you need a budget and actually preparing the budget. What should an HOA budget template even include anyway?

Expected Income

The first part of any HOA budget should cover the expected income or earnings of the association. This usually comes in the form of dues and assessments, though it can also include things like interest income.

If your association rents out its common facilities or amenities, income earned from rentals will fall under this section as well. Of course, it is not always possible to anticipate rental income for the coming year, unless it is a fixed event that happens annually.

Anticipated Expenses

The expenses portion of the HOA budget template is typically divided further into sections. There is no single correct way to prepare this part of the budget, as different HOAs may adopt varying styles. However, it is important to create an organized format that homeowners can easily interpret.

The following sections typically appear under the “expenses” portion of the HOA budget:

Administrative Expenses. This includes management fees, legal fees, bank charges, office supplies, the cost of preparing newsletters, and even reserve studies.
Maintenance Expenses. Line items under this section can include landscaping costs, cleaning services, maintenance supplies, electrical costs, plumbing costs, and the like.
Utilities. Under utilities, you have expenses such as gas, water, electricity, sewage, phone bills, and even trash collection costs.
Fixed Costs. This includes recurring costs that usually come at a fixed rate such as insurance premiums, property taxes, and annual report filing fees (Secretary of State).

Reserve Contributions

Lastly, every HOA budget should include reserve contributions. This is the amount the association should set aside in its reserve fund for future major repairs or replacements. The board must maintain the proper reserve level, which is usually 70 percent funding. To know how much is considered fully funded for your HOA, it is important to conduct a reserve study.

Sample HOA Budget

Make your budget planning season easier and less stressful with the help of the homeowners or condo association budget template below.

Download Your HOA Budget Excel Template Here

Tips for Planning Your Next HOA Budget

Preparing an annual budget for your association can come as a challenge, especially if you don’t have a background in budgeting or have simply never done it before. As part of your HOA board, though, it is one of your duties to plan for the coming year’s expenses. Here are some tips you can use when drafting your next HOA budget.

1. Review Past Budgets and Reports

One of the best ways to ensure you’re on the right track is to look at past budgets and financial reports. When you do this, you can determine how much you spent on every line item in the previous years. This will give you an idea of how much you should expect to spend this year. Reviewing past reports is always a good place to start when you are planning your HOA budget.

2. Send Out RFPs

While it is good practice to review past budgets, they can only tell you what happened in previous years. But, things can change over time.

For instance, vendors can increase their rates or give special discounts. Before preparing your budget, it is a good idea to send out requests for proposals to vendors and suppliers. Doing this will allow you to gauge how much to allocate per service or expense.

3. Add a Buffer

This may seem like an obvious tip, but it still needs to be said. When planning your HOA budget template, don’t forget to add a buffer. Doing so will give you extra room in the budget to cushion unexpected costs or unforeseen increases. Of course, it is equally important not to go overboard with your buffer.

Easy HOA Budget Planning

The homeowners association budget preparation season can be a taxing period for HOA board members, but it doesn’t have to be that way. With an HOA budget template, you can easily input the expenses and amounts you expect for the year. From there, you can determine how much each homeowner has to pay in dues.

Of course, with Condo Manager’s HOA management software, budget planning is made even simpler. With a dedicated budget planning module, all you need to do is plug in the numbers and let the software do the rest. You can even export the budget as you see fit. Call us today at (800) 626-1267 or contact us online to set up a free demo.

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HOA Account Delinquency Report: Does Your HOA Need One?

admin on July 28, 2021

The HOA account delinquency report is an essential part of the financial reporting arsenal. Unfortunately, not all association boards know how to prepare this important report.

What Is an HOA Account Delinquency Report?

A delinquency report is a statement showing all of the delinquent accounts in a given homeowners association.

Let’s face it — nobody is perfect, and there are bound to be a few or more owners who fail to pay their dues on time. This can happen for any number of reasons, including financial struggles or simple negligence. It is the duty of homeowners to pay their dues on time. Similarly, it is the duty of the HOA board to make sure dues are collected.

Understanding How Unpaid Dues Affect the HOA

Dues and assessments are the lifeblood of every homeowners association. Without them, an HOA community would suffer detrimental consequences.

Remember that homeowners associations have the primary goal of maintaining the community to preserve property values. Maintenance, of course, comes with a price. There are many expenses an association must pay for, including but not limited to landscaping, cleaning, insurance, repairs, and professional management.

When an association falls short of dues, it is unable to cover these budgeted expenses. Faced with such a conundrum, most association boards will either turn to cost-cutting or levy special assessments. Both of these options are unfavorable to owners.

First of all, cost-cutting can be dangerous when done drastically. If there are a lot of delinquent accounts, the HOA will be forced to remove some major expenses or significantly cut back on them. This jeopardizes the quality of service.

Special assessments, on the other hand, are unfair to a lot of homeowners. While most boards have the power to impose assessments, delinquent owners usually fail to pay these as well. It leaves the burden of covering the deficit on the paying owners’ shoulders.

The Importance of an HOA Account Delinquency Report

It is easy to grasp how outstanding dues can negatively impact any homeowners association. But, where does the HOA account delinquency report come in?

As you might make out from its name, this report is specifically designed to track and monitor the delinquent accounts in your HOA. It gives boards a way to quickly determine how much owners owe to the association. With this information, you can make the necessary budget adjustments and decide whether or not to levy special assessments to meet your shortfall. It also makes it easier to identify who has unpaid dues so you can refer them to a collection agency if need be.

What Is Included in an HOA Delinquency Report?

The HOA delinquency report is rather simple in its format, but it shows everything you need to know about the delinquent accounts in your community. While it may change from one association to another, this report generally consists of the following:

Delinquent owner information (account number, lot or unit number, name, and address)
Amount of unpaid dues, typically divided according to age:
- Current (unpaid dues below 30 days)
- Over 30 days
- Over 60 days
- Beyond 90 days
Total unpaid dues per account
Grand total of unpaid dues per age

The report is similar to the HOA accounts payable report in that it shows aged unpaid balances. But, unlike the AP report, the HOA account delinquency report shows debts owed to the association. It also differs from the accounts receivable report. The AR report shows all outstanding invoices, whereas the delinquency report only shows debts in the form of unpaid dues by homeowners.

How an HOA Management Software Can Help

A delinquency assessment report is relatively easy to prepare by hand. But, as debts age and as owners settle their balances, it can become increasingly difficult to keep the report updated. Whether you are preparing or updating an HOA account delinquency report, management software can assist you in many ways.

1. Accuracy

One of the most common mistakes you can make when preparing a delinquency report is missing information. When you have inaccurate numbers or names, you can misattribute the unpaid dues and cause a larger issue. You might end up erroneously erasing someone’s debt or inadvertently adding to it.

Considering accuracy is the foundation of all financial reports, a faulty delinquency report can throw your entire operation into chaos. It will take more time and effort to retrace the numbers.

Thankfully, with the help of software, you can ensure accurate details. After entering all the necessary information (such as the dues amount, the deadline, etc.), the report will basically prepare itself.

2. Efficiency

Time-wise, it is inefficient to prepare your delinquency report manually, especially if you maintain a hard copy (or a single soft copy) of the report. This means only one person can update the report or has to literally pass it on to another board member. Transferring information from one report to another can also be a hassle.

When you use software, though, the entire process is reduced to simple clicks. You can easily tag an account as delinquent or for referral to a collection agency (if you use one). You can also update the report faster since it is largely automated. Beyond that, you can generate the report instantaneously whenever you need to. This allows any board member to gain access to the report, provided they have clearance or enter the correct password.

3. Confidentiality

While it is required for some associations to share the total delinquency amount to homeowners, a majority are not allowed to disclose detailed information. In Nevada, for instance, the law prohibits associations from disclosing private homeowner information.

California, on the other hand, does not explicitly forbid publishing the names of delinquent owners, though doing so can be viewed as a violation of privacy according to Civil Code Section 5215. While some release such information to shame owners into settling their dues, experts agree that it is best for the association to refrain from employing such a tactic as it can result in liability.

Manually maintaining a delinquency report is a problem because it may accidentally end up in the wrong hands. But, with software, you can exercise more control over access and report generation. You can also choose to keep the program offline so that you can only gain entry from a specific location.

Get the Best for Your Homeowners Association

An HOA account delinquency report is definitely an integral accounting tool that every association should use. Preparing and maintaining it, though, can come as a challenge without automated assistance.

This is where Condo Manager comes in. Make accounting and financial reporting easier using our comprehensive management software. We have programs designed for self-managed communities as well as large-scale companies. Give us a call today at (800) 626-1267 to learn more information or contact us online for a free demo.

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HOA Accounts Payable Report: What Is This For?

admin on July 15, 2021

The HOA accounts payable report is an important tool for measuring an association’s debts. Unfortunately, not all board members fully understand how it works.

What Is an HOA Accounts Payable Report?

As with other organizations, a homeowners association operates with the help of a financial system. Homeowners pay monthly dues, which the association then uses to fund various expenses required to maintain the community. Not all of these expenses, though, are immediately paid when they are incurred. More often than not, vendors will perform the work and send a bill later on. Some require downpayments first, with the rest being due upon completion of the work.

These are accounts payable.

Any debts the association has to other parties are considered accounts payable. If your HOA owes money for landscaping services, your accounts payable increases. The same goes for when you owe money for construction work, maintenance and repairs, supplies, and the like.

An accounts payable report is a financial report that details your association’s debts. Basically, it contains all of your accounts payable or AP for the period.

What Is Included in a Homeowners Association Accounts Payable Report?

It is easy to get lost in a sea of financial data if you have no prior accounting experience. This is particularly true for the more complicated statements such as balance sheets and general ledgers. But, the accounts payable report is rather simple — certainly far easier to understand than a balance sheet.

The components of an HOA accounts payable report are as follows:

Vendor names
The amount your association owes to each vendor
How long you have owed the debts to each vendor
Whether any payments are past due

For the duration of the debts, you will typically encounter five columns separated by 30 days. The first column contains current debts, those that are under 30 days old. The second column is for debts that are 1 to 30 days past due, the third column for 31 to 60 days, the fourth column for 61 to 90 days, and the final column for debts that are over 90 days past due. Because debts age, the accounts payable report frequently changes, with debts moving from one column to another when they hit a certain point.

The Importance of an HOA Accounts Payable Report

Some HOA board members might wonder why preparing and maintaining an accounts payable report is even necessary. While it might not be for associations that use the cash basis of accounting, associations that use the accrual or modified accrual methods will greatly benefit from the report.

For one thing, an HOA accounts payable report will help you manage your debts. You can track how much you owe, how long you have owed them, and to whom you owe them. The report is organized in such a manner that you can visualize your debts at a glance.

Tracking your debts can help your associations in two ways:

1. Save Money

Firstly, it will reduce the occurrence of interest. When you pay your debts on time, it eliminates vendors charging you interest or late fees. This will save your association a lot of money in the long run. With this report, you can settle your debts when they become past due or pay those that have been past due for longer.

2. Maintain a Good Reputation

Secondly, tracking your debts will allow you to manage them better and maintain your reputation as a good payer. Nobody likes doing business with bad payers. And word can spread around relatively fast among vendors — even faster when you live in a small town. To maintain a good working relationship with vendors, you need to pay your debts on time. Again, the HOA accounts payable report can help you with this.

Accounts Payable Report vs Accounts Receivable Report

If you know anything about accounting, then you know the difference between accounts payable and accounts receivable. Accounts payable is what your association owes, while accounts receivable is what other parties owe to your association.

The accounts receivable report is basically the complete opposite of an accounts payable report. An AR report lists down all of the names of your debtors, how much they owe you, and how long they have been due. It provides you with a way to easily track your receivables.

Sometimes, associations will have a separate delinquency report from the AR report. The delinquency report consists of all the delinquent accounts in your association. It contains the names of the owners who are delinquent, how much they owe, and how long the amounts have been due.

The Role of Management Software

Unfortunately, not all HOA board members have a background in accounting. This makes it difficult to prepare financial reports, including the accounts payable report. While many turn to HOA management companies or accountants for help, another alternative is to invest in software.

With management software, you can seamlessly generate an AP report with the click of a button. All you have to do is enter your payables and tag them to the appropriate vendor. The software will do the rest, including aging. This way, you can generate a report in real-time.

Apart from preparing an accounts payable report, HOA management software can also help your board with a multitude of other tasks. This includes invoice processing, delinquency tracking, dues collection, bank reconciliation, and financial statement generation. The capabilities of software also extend to other aspects of managing an association such as homeowner communication, task scheduling, work order processing, and violations tracking.

Helping HOA Board Members Everywhere

The HOA accounts payable report is just one of the many financial reports HOA boards must prepare. Between accounting and other management tasks, board members often find themselves feeling overwhelmed with their duties. Self-managed communities will benefit from investing in HOA management software that comes equipped with full accounting capabilities.

This is where Condo Manager comes in. We offer comprehensive programs designed for self-managed communities as well as HOA management companies with many clients. If you want to know more about our product, call us today at (800) 626-1267 or contact us online to schedule a free demo.

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HOA General Ledger: How Important Is It?

admin on June 30, 2021

An HOA general ledger is a valuable tool for tracking and measuring your association’s finances. But, many HOAs simply don’t realize how important this financial report is.

What Is an HOA General Ledger?

The general ledger is the prime repository of a homeowners association’s financial data. It serves as the association’s ongoing record of all financial transactions incurred by the HOA. This includes all assets, liabilities, income, and expenses. The entries come in the form of account titles and their corresponding numbers sourced from the chart of accounts.

While not technically considered as one of the financial statements of an HOA, the general ledger does serve as their pre-requisite or basis. Thus, it remains an essential tool in accounting and financial management.

How Often to Prepare an HOA General Ledger

Anyone who has ever worked with financial statements knows that these statements are prepared on a regular basis. Typically, this comes in the form of monthly, quarterly, or annual reports. The general ledger, though, is different.

Much like any other organization, homeowners associations must continuously update their general ledger. Whenever a financial transaction occurs, the general ledger must reflect that. For instance, if your HOA board made a cash payment to a vendor, that should immediately be accounted for within the general ledger. In doing so, you can look at your general ledger at any given time and be able to determine the association’s financial standing.

What Is Included in an HOA General Ledger?

The general ledger acts as the master copy of all financial transactions in a homeowners association. It contains all accounting data, including those posted from your sub-ledgers and journals. Therefore, an HOA general ledger should include all incoming and outgoing financial transactions.

Ideally, you should keep a separate ledger for each account. For homeowners associations, that usually means keeping a ledger for an operational account and another for a reserve account. It is entirely possible for an HOA to maintain multiple ledgers simultaneously.

HOA General Ledger: Checking for Accuracy

As with many financial tools and records, the general ledger is not impervious to inaccuracies. Due to human error, the general ledger can end up reporting false numbers, causing great misinterpretations and distress to your board. Remember that all other financial statements use the general ledger as a basis, so it is crucial to maintain an accurate general ledger. A flawed ledger can lead to inexact financial reports, thereby resulting in misinformed decisions and financial ruin.

A good way to verify the accuracy of your general ledger is by cross-referencing it with other financial records. This includes bank statements, invoices, receipts, and the like. In doing so, you can avoid accidentally misreporting numbers. Practicing this regularly can also help prevent and thwart fraud.

The Importance of a Homeowners Association General Ledger

When you understand how HOA accounting works, it is easy to see why the general ledger is so critical to a homeowners association. After all, the general ledger is the foundation of HOA accounting. Without it, you have no way of tracking and updating your financial transactions. It is also impossible to prepare financial statements, such as the balance sheet and income statement, without the general ledger.

In addition to this, the general ledger makes it easy for your treasurer or accountant to prepare your tax returns. The general ledger compiles all financial data in one neat place, so you can quickly refer to it for any clarifications. In a way, it serves as a record of your financial history. As such, if you need to look back and check a transaction from years ago, you can always turn to your general ledger.

Types of Accounting Methods

The general ledger is a master repository of your association’s financial data, but it still follows a standard format. Every transaction affects at least two accounts. And while you can, in theory, simply write down all of your transactions as they are, adhering to the accepted format allows you to easily see the movement of accounts.

For general ledgers, there are three accounting methods homeowners associations can use — cash accounting, accrual accounting, and modified accrual accounting.

Cash Accounting

This method of accounting only tackles transactions made in cash. In other words, you will only record transactions that affect your cash account. When you earn revenue or incur expenses, such transactions will only appear on your general ledger when the money actually passes hands.

Cash accounting is, by far, the easiest approach to HOA accounting. This is because it involves the least amount of work and detail. Unfortunately, its simplicity is also its downfall, as the cash accounting method does not give you a very precise picture of your finances. Using this method may cause you to think you have more money than you actually do and end up overspending.

Accrual Accounting

Accrual accounting is the most widely used approach because of its accuracy and reliability. It is also the only accounting method that conforms with the Generally Accepted Accounting Principles (GAAP).

Using this method, you report both revenues and expenses when they happen as opposed to when money passes hands. The accrual approach involves the use of receivable and payable accounts.

For example, as soon as HOA fees become due and you send out the invoices, you will record them in your ledger, and the “Dues or Assessments Receivable” account will increase. When homeowners start paying their dues, this receivable account will decrease and your cash account will increase.

Modified Accrual Accounting

The modified accrual approach combines the principles of the first two methods. For this method, revenues follow the accrual approach and expenses follow the cash approach. You record revenues as you earn them instead of when you receive the money. In contrast, you record expenses when you disburse money instead of when you incur them. While the modified accrual method gives you an accurate view of your revenues, the same cannot be said about your expenses.

The Role of HOA Software

As you can see, the HOA general ledger is an indispensable financial instrument used as both a master repository and a basis for all other financial reports. Given how essential it is to any association, maintaining it should be a top priority for treasurers and HOA accountants. Unfortunately, not everyone who volunteers for a position on the board knows how to use the general ledger.

This is where Condo Manager comes in. We provide our clients with comprehensive HOA management software, complete with accounting and financial reporting capabilities. Our software is perfect for both self-managed communities and management companies looking to make HOA management easier. Call us today at (800) 626-1267 or contact us online for a free demo.

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What Is An HOA Cash Flow Statement?

admin on June 17, 2021

Every homeowners association deals with money. Without proper controls and reporting, though, it can be easy to lose track of the association’s cash. This is where an HOA cash flow statement comes in.

What Is an HOA Cash Flow Statement?

A cash flow statement is a financial report that depicts the amount of cash and its equivalents moving in and out of an organization — in this case, a homeowners association. Many might compare it to an HOA income statement, but there is a stark difference between the two reports. While the income statement shows income and expenses affecting all accounts, the cash flow statement mainly shows how other accounts impact your cash position.

The cash flow statement is one of several financial reports that a homeowners association should know about. In some states, it is even mandatory to prepare financial statements every so often and present them to the membership. One example of this is Nevada (NRS 116.31038). Other associations are required to do the same as stipulated by their governing documents. If you want to avoid legal trouble, always check your state laws and governing documents for any financial requirements.

What Is Included in an HOA Cash Flow Statement?

The cash flow statement is a simple financial report that is typically divided into three parts:

Operating Activities. This part consists of cash sourced from and spent on business activities. For an HOA, that could mean revenue from dues and assessments, interest, fines, salaries and wages, and other operating expenses.
Investing Activities. Cash flow from investing activities includes changes in assets or equipment as well as anything considered as an investment. If you invest your reserves, this part of the statement would cover it.
Financing Activities. This is cash sourced from banks and investors as well as cash paid to shareholders. If your association took out a loan and paid it off, that would usually fall under this category.

Obviously, any changes from the balance sheet and income accounts will influence the statement of cash flow. For instance, if your accounts receivable (AR) decreases, that means that your association received more cash. A drop in the AR equates to someone paying what they owe to your association. In the same way, a decrease in accounts payable (AP) means a decrease in your cash account. When AP goes down, you are paying your outstanding debts and so money flows out of the HOA.

Of course, AR and AP are not the only two accounts that can affect your HOA cash flow statement. There is a multitude of other accounts that can do so as well, including but not limited to prepaid insurance, salaries payable, prepaid assessments, and taxes payable.

The Importance of an HOA Statement of Cash Flows

If the cash flow statement only measures how much cash the association has, then is it even worth the trouble? After all, homeowners associations are not businesses, at least in the traditional sense, so it must not be all that crucial to track its cash flow.

Many HOA boards operate with this dangerous mindset. The fact of the matter is, an HOA cash flow statement is essential to any association. This statement will help you evaluate how your association manages its cash position. It will allow you to identify how well your HOA earns revenue, funds expenses, and pays off its debts. If your association is bad at managing its money, the cash flow statement will reflect that. In turn, you can adjust your financial strategies and decisions accordingly.

Beyond using this report as an analytical tool, it also helps homeowners and potential homeowners understand the HOA’s financial health. Homeowners are, in essence, the stakeholders of an association. They want to know that the HOA is spending their money right.

On the other hand, potential homeowners can check an association’s financials and see how viable it is to purchase a property there. It helps them decide whether or not it is worth joining that particular HOA. After all, no one wants to invest in a poorly managed association. Bad money management can signal a larger problem and potential buyers don’t want any part of that.

The Role of HOA Management Software

On paper, the homeowners cash flow statement seems easy to prepare. But, it actually takes a lot of organizing, cross-checking, and discipline to properly put one together. Many companies have teams of accountants and professionals for this kind of task. Homeowners associations, though, typically only have their board to rely on.

There are many associations that seek professional help, whether in the form of a management company or an accountant. But, for some self-managed HOAs, the most favorable option is to invest in HOA software.

A management software comes with a comprehensive range of features, including invoicing and billing, collections, homeowner communication, violations tracking, and more. Many programs also typically come with accounting and financial reporting capabilities. This feature will allow your HOA board to track your income and expenditures as well as generate financial reports all from one place.

While it does take some effort to set up and get used to, the software eliminates many of the tedious and redundant tasks in an HOA. The best part is, you can generate financial reports any time you like, making it easy to assess the association’s financial health at a moment’s notice.

Track Your Financial Health More Efficiently

Considering how important the HOA cash flow statement is, no association should do without it. The statement of cash flow reports on your association’s cash position, allowing you to determine how financially viable your HOA is. It measures your ability to earn income and pay debts — data you can use to inform your future financial decisions.

Unfortunately, not every HOA board knows how to track their finances and prepare crucial financial statements. With the help of HOA management software, though, your self-managed association can stay on top of your financial activities in a more efficient and effective way. Call Condo Manager today at (800) 626-1267 to know about our product or contact us online for a free demo.

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A Look Into The HOA Income Statement

admin on June 2, 2021

The HOA income statement is a part of every association’s range of financial reports. Therefore, it is important to know what this statement does and what you can find on it.

What Is an HOA Income Statement?

An HOA income statement is a financial report that presents the association’s revenues and expenses for a specific period of time. Other terms used to describe this report include a profit and loss statement, a statement of financial results, or a statement of earnings.

This report details the association’s revenues in terms of source and amount. It also breaks down all of the association’s expenditures. The report then calculates the HOA’s net income (or loss) by deducting the total expenses from the total revenues.

Income statements are very flexible and can be prepared at any point in time. Associations, though, usually generate their income statements every month, quarter, and year.

What Is the Purpose of an HOA Income Statement?

Homeowners associations function in much the same ways as a business. And just like a business, HOAs need financial statements to guide their financial decisions.

In fact, for many associations, it is mandatory to prepare financial reports on a regular basis as dictated by their governing documents or state statutes. For instance, Nevada associations are bound by NRS 116.31038 to review their finances and prepare a year-to-date financial statement.

Aside from being a requirement, though, the income statement helps associations in more ways than one. It is more comprehensive than a balance sheet in that it depicts your association’s revenues and expenses for a set period. A balance sheet, on the other hand, only shows you a general picture of your financial health.

Because the income statement is more detailed, it gives you a better view of your association’s finances for a given period of time. It shows you whether or not you are hemorrhaging money. If you end up with a net loss, that means you are spending way more money than you are earning. On the flip side, ending up with a positive net amount means you are heading in a good direction, financially speaking.

Once you have this information, you can then use it to inform your future decisions. Generally, a net loss signals you to cut back on your expenses. But, the problem can also stem from your income sources. In that case, examine your revenue stream to determine where your earnings are getting clogged. Perhaps some owners have stopped paying their dues, which would typically call for more stringent collection methods.

Components of an HOA Income Statement

For homeowners associations, an income statement consists of four general sections — gross profit, operational expenses, gains and losses, and net profit or loss.

Gross Profit

This depicts your association’s earnings before the deduction of expenses. It includes homeowner dues, fees, assessments, and fines. If you are preparing a monthly financial statement, then this should show the total revenue (before expenses) for the month covered.

Operational Expenses

The operational expenses section includes all the recurring costs incurred for the period covered. Some examples are landscaping fees, maintenance costs, management fees, insurance premiums, and the like. If your association pays for it on a regular basis, this is where it should go.

Gains and Losses

Not all revenues and expenses are recurring. One-time earnings or expenses fall under the gains and losses category. For example, if your association replaced street lighting or had the playground repainted, you would include those expenses here.

Net Profit or Loss

The final part of the report is your net profit or loss. This is the resulting amount after you deduct your total expenses from your total revenue. A positive net amount means your association did financially well during the period covered. On the other hand, a negative net amount should trigger a re-evaluation of your finances. Is this a one-time fluke or is there something more to the net loss you experienced?

The Difficulties of Preparing an HOA Income Statement

From a glance, it might seem easy to generate an income statement. All you have to do is plug in the numbers and push some buttons on a calculator, right?

Although the income statement is the easiest to prepare among all the financial reports, many people still trip up and make mistakes. And, as you may know, even the slightest of errors can turn the entire report askew. Mistakes result in an inaccurate report, which ultimately leads to uninformed decisions.

For example, if you made a mistake and forgot to include certain expenses (resulting in a high net profit), you might think your association made more money than it actually did. Come next month, you might end up overspending because of this miscalculation. Mistakes are dangerous and can ruin your association’s financial standing.

Preparing an income statement demands attention to detail. You must list down all of the revenues and expenses you incurred so that you don’t leave anything out. Make sure to itemize each one, too. Don’t just group all the expenses together under a single category.

This also means having to use other reports and records as references. Because everything is connected, you must take the time to record all financial transactions no matter the size. If you neglect or choose to report even just one transaction, it could throw off your entire budget.

The Role of Management Software

While many associations hire an accountant or a management company to help prepare their financial reports, you can achieve equally great results with management software.

HOA management software allows you to automate a lot of transactions and financial records. It removes the need to write in every transaction multiple times in separate books. Instead, you only need to input it once and let the program do the rest.

The help of management software also allows you to generate financial reports, including an HOA income statement, with just the press of a button. You can generate these statements any time you wish, which is not only convenient but also lets you analyze the association’s financial direction without having to prepare an entire report from scratch.

Better Reports Lead to Smarter Decisions

The HOA income statement shows you the association’s net income or loss with great detail. Reviewing it allows you to identify any problem areas and jump to resolve them. Having it in your arsenal means you are equipped to make more informed financial decisions. Unfortunately, it is way too easy to make mistakes in the process of preparing it.

If you need an HOA management software for your association or management company, Condo Manager is your best choice. Call us today at 800-626-1267 or reach out to us online for a free demo.

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The Importance Of An Updated And Accurate HOA Balance Sheet

admin on May 21, 2021

The HOA balance sheet is an important financial tool in any given homeowners or condo association. Making sure you prepare this report accurately is essential to the financial health of your community.

What Is an HOA Balance Sheet?

The balance sheet is one of several financial statements or reports that organizations use to assess their fiscal condition. Homeowners associations are no exception. The HOA balance sheet shows you the assets and liabilities of the association. It is a quick way of getting a picture of your association’s overall financial strength.

The homeowners association balance sheet consists of three parts and follows a simple formula:

Assets = Liabilities + Equity

An association’s assets are anything that has monetary value. This includes cash accounts, reserve funds, accounts receivable, prepaid insurance, long-term investments, and land. An association’s liabilities are the amounts your association owes. This includes accounts payable, utilities, prepaid assessments, rental fees, and long-term loans. Finally, an association’s equity is what is left after subtracting your liabilities from your assets.

When your HOA has positive equity, it means your association is in good financial condition and has enough money to cover its debts. On the other hand, negative equity signals that your association isn’t doing so well. It means more money is going out of the association than coming in. Thus, you need to start reevaluating your association’s finances.

The Importance of HOA Balance Sheet Accuracy

Homeowners associations must regularly prepare financial statements, including HOA balance sheets, to assess its finances. Most of the time, HOA boards lack the qualifications or expertise to do this themselves and, thus, require the help of a Certified Public Accountant (CPA) or management company.

Additionally, in some states, it is mandatory for HOAs to prepare such statements and distribute them to their membership. For instance, in California, Civil Code Section 5305 requires that a copy of the financial statement review be distributed to members within 120 days following the end of the fiscal year.

But, the importance of an accurate HOA balance sheet goes beyond the requirements of the state or your governing documents. As previously stated, the balance sheet provides you with a snapshot of your association’s financial health. It allows you to see whether or not the HOA is in stable condition, at least in the sense of its finances. With the balance sheet, you can determine if your association has enough money to pay for its obligations and debts.

Accuracy is key when preparing financial statements. With erroneous numbers, you can’t aptly find out what your financial standing is. This could lead to the misconception that your association has more money or fewer debts than it actually has. Operating under an incorrect notion gives you a false sense of security. You might spend more money than you have, resulting in even greater debts.

While you can generally update your balance sheet any time you like, it is good practice to do so at the end of every month. This allows you to keep a tight leash on your finances and make adjustments when necessary.

The Role of HOA Management Software

Although you can rely on manual accounting processes, the advent of management software has made it infinitely more efficient and convenient to stay on top of your HOA’s finances. Here are just some of the ways HOA software can help with balance sheet preparation.

Quick and Convenient

Far too many associations waste time fumbling with financial reports when they could be focusing on maintaining the community and keeping residents satisfied. HOA software largely automates accounting processes, allowing your board to save time. Relying on software is also more convenient since you don’t have to worry about confusing financial terms and calculations. With software, you can generate an HOA balance sheet with the simple click of a button whenever you like.

Easy Access and Storage

Is your homeowners association running out of room to physically file reports? Space is a big issue for many associations, especially with the countless documents and records you need to maintain. With architectural review forms, violation records, and insurance policies to keep, the addition of financial reports can make it extra hard to find room. Plus, there is also the issue of rifling through years and years’ worth of documents when you’re in search of a particular one.

Not with HOA software, though. Because HOA software uses servers to store data (whether in the cloud or on-site), space is a non-issue. If you ever run out of digital space, you can always purchase an upgrade. That’s not as easy to do with physical space.

Management software also lets you search for records in a more efficient manner. Apart from that, you can also make copies of your data and store backups somewhere else. This not only takes care of access but also security and loss issues.

Accuracy and Security

The numbers on a balance sheet don’t just magically appear out of thin air. You record financial transactions in your general ledger, which you then use as a reference when preparing your HOA balance sheet. During this process, though, you can commit mistakes and end up with an inaccurate report — and you already know how dangerous it can be to work under a financial misconception.

HOA software automatically pulls its numbers from financial records to generate reports, thus, minimizing human errors. Of course, since you will still need to manually input invoices and other financial transactions at times, there is still some room for mistakes. Overall, though, HOA software can prepare more accurate balance sheets. In addition to better accuracy, HOA software also helps prevent fraud since it is harder to fake the numbers.

A Helping Hand

The HOA balance sheet is integral for homeowners associations to evaluate their financial state. Thus, it is essential to have an accurate balance sheet that you regularly update. Unfortunately, this is not always achievable when left in the hands of inexperienced board members. An HOA management software, though, can assist with this and with many others.

If your homeowners or condo association needs reliable and comprehensive software, choose Condo Manager. Give us a call today at 800-626-1267 or contact us online for a free demo.

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