HOA Accounting & Bookkeeping Service HOA Property Management

In the last two columns, it will list the budgeted income and expenses for the period as a number and as a percent, and the difference between actual income and expenses for the period. It is also typical for the Budget Comparison Report to list the actual income and expenses Year-To-Date, and in the next column budgeted income Year-To-Date. Similarly, it should provide the differences between the actual income and expenses for the Year-To-Date against the budgeted income and expenses Year-To-Date, both as a number and as a percent. The Accounts Payable (A/P) Report reflects accounts for vendors or suppliers that the Association owes money, but hasn’t paid yet (a form of debt).

A good way to keep track of your income and expenses over the course of a 12-month period is to create an HOA accounting spreadsheet. Your accounts payable report details all of your association’s payables. This report has a receivable counterpart, usually known as the account delinquency report, which shows all of the money owed to the association. Your 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. But, if you’ve evaluated your association’s unique situation and determined that hiring an out-of-house bookkeeper is the right choice for you, it means it’s time to find an exemplary bookkeeping service or person. A fiscal year is the period used for calculating annual (yearly) financial statements.

Learn How to Prevent Fraud at Your Community

The cash account is simply debited when the cash is received (for example from member dues), and it is credited when cash is reduced (for example when paying expenses). Provide them with reports generated hoa accounting by HOA accounting software, like the custom reporting available from CINC Systems. The CPA will be able to pull reports directly from the accounting software without taking up your time to run them!

Companies can track all information on their books to make critical operational, investment, and financing choices with effective bookkeeping. Watch Out – We hear from some boards that vendors are not paid in a timely way. Ever feel like your association budget would be just fine if it didn’t have to deal with unit owners that didn’t pay on time? When some people don’t pay it can cause a lot of stress on your community’s budget.

Creating an HOA Budget Committee

So income is counted when it is due, not when it is actually received; and expenses are counted when they are owed, not when they are actually paid. Therefore, it provides a clearer picture of how expenses and income are actually occurring. The process is complicated because some items appear in the company’s Cash account in one month, but appear on the bank statement in a different month. For example, checks written near the end of August are deducted immediately on the company’s books, but those checks will likely clear the bank account in early September.

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 income and expense require monthly accounting tasks be completed.

First Things First – What is an HOA and Why Does it Need Financial Management?

You can’t just meet over dinner and make major or minor decisions arbitrarily. All of this is done by keeping all books and financial records in accordance with GAAP. Most financial issues can be avoided by simply monitoring the HOA’s financial accounts. Watch for unfamiliar invoices, double charges and any other suspicious activity. The sooner you catch a problem, the sooner you’ll be able to solve it.

We offer all the solutions to keep your books, bills and, residents payments up to date. We use two major accounting software solutions for associations so the board never has to worry about data security and data access. When thinking about professional management for a small HOA community, you first need to determine the services that your association needs. Once you understand the unique features of each bookkeeping method mentioned above, the real work begins. Use HOA accounting software like CINC Systems to start managing your client’s accounts.