HOA FINANCIAL REPORTING YOU CAN TRUST
One of the best reasons to hire a professional
San Francisco community management company
is to keep your HOA’s accounting practices organized, compliant, and well-documented. We know that reporting your finances and sharing your accounting reports is one of the responsibilities you have to the homeowners in your community.
HOA boards need to document and communicate budgets, accounts receivable, accounts payable, forecasts, and reserves. Your HOA also has a responsibility to protect the funds of the community and avoid the risk of fraud.
Everything must be clear, transparent, and accurate for their homeowners.
If you’re wondering what the best ways to communicate the financial position of your HOA might be, we’ve been doing this effectively for years, and we have some ideas to share.
What is the HOA Board’s Responsibility?
1. Set Up Good Accounting Systems
Accounting doesn’t have to be complicated, even if you have a large HOA. The board treasurer should be tasked with overseeing how the accounting process is managed, and he or she will need the support of the association and your
property management partners and CPA.
Every HOA needs to be budgeting, shoring up a reserve fund, and auditing the accounts to prevent fraud and mismanagement. You need a short term spending plan, a long term budget, and a consistent way to follow the law, collect the dues and pay the bills. There are also taxes to consider, insurance, and vendor contracts.
Consistent, transparent systems will make this possible.
2. Document Operating Expenses and Income
Investing in technology that allows your board to securely view and approve vendor bills will help you stay organized. Online payments for dues, fees, and assessments is also an excellent way to stay organized. Paper checks and written invoices tend to get misplaced. Keeping everything online is more transparent and secure. Keeping your expenses and income central and automated allows for:
● Less paper and waste
● Immediate tracking of invoices
● Better controls and approvals
● Less chance of late fees and overdrafts
● Audits are easy to manage with better documentation
This leads to more peace of mind and less confusion. Communicating is much easier when there are online portals for homeowners to access.
3. Prepare for Taxes, Year-End Summaries, and HOA Meetings
A financial summary at the end of the year is an excellent way to give homeowners in your association an easy-to-read reflection of where the community stands financially. It also prepares you for tax time.
HOA meetings are also an important way to communicate current and future financial issues. Even if your meetings are not well-attended, providing the meeting minutes that include a financial summary will give the members of your community an opportunity to stay informed.
OUR FINANCIAL SERVICES
Financial reports include:
● Bank statements and reconciliation reports as well as check registers.
● Deposit summaries.
● Budget comparisons.
● Balance sheets.
Owners receive a monthly disbursement via ACH and we work with your accountants to provide year-end financial summaries.
If you have any questions about how we can help with your HOA accounting and finances,
contact us at BanCal Property Management.