5 Reasons to Collect HOA Fees Online
Previously, HOAs collected many of their fees via traditional check. This method took a great deal of time and effort from the association staff along with residents to organize their finances and schedules to make their payments on time. Today, with the development of the Internet, many options have become available that enable HOAs to design websites where they can make their bookkeeping processes and ease of resident payments much easier. Let’s discuss five reasons why collecting fees online is better than the traditional method. If you are considering shifting your process to an electronic one, read on.
Less Late Payments
If you can establish an online credit card payment option, it will be much easier for your residents to have more spare time. And since they have more time to spare, what this does is to reduce the number of late payments that your HOA receives each billing cycle, which can be greatly beneficial to your organization’s cash flows.
Ease of Payments for Residents
Paying online is far easier for residents. HOAs used to accept fees by checks; however, this can take several business days to process, which can become quite complicated for the association and resident’s finances. Eliminating traditional checks from the equation altogether is one of the best investments that a homeowners association can make.
Organized Bookkeeping System for Your HOA
One of the great benefits of receiving fees online is that it is possible to classify those successful payments into a system and keep track of what payments have been made and what cash flow is expected. HOAs will be able to manage their cash flow better and even plan out better utilization of their reserve funds through swiftly transferring a percentage of the association’s dues that they receive to their reserve funds for unexpected future needs. Also, they can organize a bookkeeping system that shows the trends of their expenses each year so that they can anticipate what kind of cash flow they need to keep their HOA running efficiently. When it comes time for taxes, the online system also helps keep all the required information in one place to increase the accuracy of annual tax returns. As a result of these improvements, residents will surely observe an improvement in how their HOA is managed.
Ease of Tracking Payments & Reminders for Late Payments
Even with electronic fee collection, there are still going to be some late payments; however, moving payments systems online enables your HOA to send reminders through emails or text messages. This method is far easier than calling or leaving notices at the resident’s home. Residents will be pleased with this feature because it will help them remember and anticipate when their upcoming payments are due.
Are Online Payments Difficult to Setup?
One of the reasons why some HOAs are still stuck with writing checks is the thought that the online system is difficult to set up, costly and time-consuming. Establishing a professional website with payment capabilities does take a little bit of time; however, once the site is set up, your association and community will be able to experience the benefits of their investment immediately and in longer terms.
Through increased on-time payments, HOAs will be able to manage their capital far better and allocate their finances appropriately. This will have an overall positive impact on the community and improve how residents perceive the effectiveness of their HOA. It is important to remember the value of setting up an online payment system and how it has the potential to have a positive impact on many different essential parts of how your community’s HOA functions.
How Clark Simson Miller Can Help You Set Up Your HOA Online Fee Collection
Make sure you carefully consider how your Community Association is accepting its payments. If you do not manage your finances efficiently, you will run into major issues in the future. Clark Simson Miller can assist your Community Association in terms of fee management and other accounting needs. To learn more about how Clark Simson Miller can help your homeowners association, give us a call at (865) 315-7505 or contact us online.