As more HOAs consider self management, they may be overwhelmed by the perceived workload. Using outdated tools and methods contributes to this perception, as they create tedium that, by using the right software, can often be automated and streamlined.
HOA accounting software allows organizations to manage all aspects of the community with a tool designed specifically with their best interest and needs in mind.
Accounting software for homeowners associations offers so much more than a place to manage your organization’s finances. Here are the four greatest advantages of a holistic HOA accounting software.
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In 2020, HOAs collected over 125 billion dollars from their residents to fund management, security, insurance, utilities, maintenance, amenities, repairs, and upgrade infrastructure, to name a few. While homeowners recognize the importance of paying dues, they prefer them to be low and managed wisely.
If the HOA board hires a third-party association management company to manage the community, a significant portion (often more than half) of the dues collected will go to pay for the management company. These companies can be incredibly expensive depending on their prices and the needs of the HOA, and they often include a long-term contract.
Accounting software costs as little as $49 a month and touts no contracts and no cancellation fees. This allows HOAs to lower monthly dues for homeowners while offering flexibility in management. It provides the community with freedom to self-manage in a way that’s best for them.
In addition to being less expensive, accounting software for homeowners associations allows HOAs to keep a closer eye on their finances, as it provides financial transparency to help minimize revenue losses. It automatically syncs with your HOA’s bank account so you can view your organization’s most up-to-date and accurate financial status at any time.
Financial reports are easy to generate and analyze with accounting software for homeowners associations. A general ledger, balance sheet, and profit and loss statement all help you clearly view your HOA’s income and expenses and adjust accordingly throughout the year.
Volunteers use their energy, time and talents to run a self-managed HOA. They would rather invest these resources into the community, so efficiency is essential to prevent burnout and frustration. Accounting software for homeowners associations automates many processes and provides a central location for streamlined HOA management.
Outdated and manual processes that involve copious Excel spreadsheets and paper create a ton of extra work and data entry, ultimately wasting volunteers’ precious time on unnecessary tasks. Switching between systems also means some important things will get neglected or incorrectly updated.
Even using QuickBooks for accounting purposes can overcomplicate HOA management. Since it’s intended for customer transactions and not the specific finances of an HOA, using Quickbooks for HOA accounting often means lots of corrections and manual entry.
HOA accounting software eliminates many time-consuming tasks as it automates invoicing in bulk and bookkeeping. Collecting dues online saves time for both the HOA and homeowners, as fetching and depositing paper checks requires much coordination for both parties. Paying through HOA accounting software allows for quick and timely payments.
Autopay is the ultimate time saver for both the HOA and homeowners. Residents can set up regular auto drafts from their bank account and/or credit card with HOA accounting software. They’re also less likely to forget to pay, and the HOA no longer has to spend any time chasing down their payment.
Homeowners want to know what their community leaders are doing. Accounting software for homeowners associations facilitates clear and easy communication between the HOA and its residents. This transparency ultimately builds trust and fosters a deeper sense of community.
Mass texts, phone calls, and emails are easy to set up and send through accounting software for homeowners associations. A copy of these communications are saved on each homeowner’s profile, so there’s a clear record of who received which information and when.
Keeping everyone informed maintains a consistent and clear message throughout the community, preventing hearsay and confusion. HOA accounting software also offers a newsletter, website, and physical mailing capabilities to distribute important news, announcements, and milestones through various channels. Clearly posting rules and sending violation reminders helps homeowners adhere to them.
For any rules that are broken, violations and fees can be automatically administered through HOA accounting software. Feedback through maintenance requests and surveys can also be submitted through the software. This allows all parties to communicate through a central and consistent location.
Since accounting software for homeowners associations also gives a clear picture of an HOA’s finances, it’s easy to gauge the community’s health. Familiarity with the HOA’s financial situation allows homeowners to be updated regularly on their community’s fiscal vitality. This also keeps the HOA out of legal trouble, as they must adhere to local, state, and federal guidelines.
Plan for the future.
Whether it’s building financial reserves, budgeting for regular maintenance/future repairs, or planning for a new amenity, accounting software for homeowners associations helps you chart the course towards your HOA goals. Positive results often flow from proactive measures to achieve future goals.
Effectively recording, analyzing, and projecting the HOA’s financial situation directly contributes to the health of the community. New obstacles will always appear, like unexpected repairs or inflation. The more aware of your current situation and prepared for the future you are, the more agile you will be in dealing with these unanticipated situations.
An HOA’s mission should always be to support a viable future for the neighborhood. As many homeowners buy homes in communities where they plan to spend and enjoy the rest of their lives, building a stable foundation for all is vital.
Self-management allows you to take control of your HOA and directly affect your community’s future by investing your time, energy, and talents. Putting your own work into your HOA enhances the community far more positively than a property management company can.
Accounting software for homeowners associations allows you to use your resources wisely in the neighborhood by providing a central location for self management. Ultimately, all parties will be happier knowing they are working towards a sustainable future together.