HOA bookkeeping

What is HOA bookkeeping?

HOA bookkeeping is an indispensable function of managing a homeowners association. It may be carried out by volunteer HOA board members or a part-time employee. Many outsource to a bookkeeping service or property management company. Common tasks in HOA bookkeeping include the following:

• Sending invoices and following up with late-payment reminders if needed
• Receiving and recording payments
• Making bank deposits and reconciling statements
• Filing tax returns 

Each of these tasks and any others assigned are carried out in concert with and under the supervision of the HOA board. Many such boards have found they spend less time carrying out the administrative and bookkeeping tasks themselves, with the assistance of high quality software designed for HOA management, than if they oversee the work of an outside bookkeeper or manager.

Why is HOA bookkeeping important in an HOA?

Accurate bookkeeping helps an HOA board to satisfy their legal requirements, to keep good relations with property owners, and to manage the HOA’s funding to better serve the community.

How can you use “HOA bookkeeping” in a sentence?

I thought managing my small business’s finances was difficult until I tried my hand at HOA bookkeeping. That’s a real challenge (without the right software of course).