Both smaller and large associations have their respective obstacles to overcome when it comes to managing money, whether...
Can an HOA Company Just Do Bookkeeping Services?
Most experienced HOA management companies offer a variety of comprehensive services. Typically, when management tasks become overwhelming for the volunteer board of directors, HOAs hire a company to effectively carry out the management of their community. Sometimes, however, an HOA board doesn’t need all of these services, and go looking for just one service – and that can include bookkeeping services, which are an important aspect of HOA management.
Hiring a management company for a single aspect of service is often a good idea for self-managed associations. Here are a few benefits of hiring a management company for HOA bookkeeping services even if you do most of your management yourself.
What are HOA bookkeeping services?
HOA bookkeeping services include, but are not limited to:
- Financial statement preparation
- Bank Reconciliation Reports
- Balance sheet
- Income statement (shows month-to-date and year-to-date figures with budget comparisons and variances)
- Check distribution report of services provided
- Accounts receivable report
- General Journal Reports
- Complete General Ledger
- Assessments Processing
- Late notices
- Bill payments
- Budget preparation
What are the benefits of hiring a company just for HOA bookkeeping services?
Make collections easier
One of the most time-consuming and important tasks in any community association is the regular billing and collection of HOA. Without money coming in, there would be no funding for community maintenance or new projects. Moreover, organizing labor at regular intervals to prepare bills and collect late fees can be hard to manage.
HOA financial management services can take away some of that pressure by using their own labor and resources to prepare and send invoices to homeowners. In addition, these companies have teams of trained collection professionals who will work with your board of directors to create and implement a collections program that is right for your community.
More detailed HOA financial reporting
The key to financial stability in your HOA is to ensure the keeping of detailed records for every dollar that passes through your community. By maintaining detailed records, your board of directors can make more accurate plans regarding the allocation of funds.
Keeping up with financial statements such as balance sheets, statements of income, payables & receivables, bank statements and reserve fund balances require certain expertise. These are best handled by a trained professional to ensure accuracy and give homeowners peace of mind.
Easily handle bills and payments
Receivables are only one part of financial management for HOAs. An HOA management company that focuses on bookkeeping can also keep track of payables and make sure that all vendor payments go out on time.
Hiring a professional management company to handle your HOA bookkeeping and accounting needs can make a world of difference when it comes to efficiency. If you’re looking for an experienced HOA manager in San Diego, APS Management can help. Take a look at our services or contact us to request a proposal.