HOA audit time is always a busy time for associations. At the end of the year, HOA board members have to start considering whether they need to get a financial audit started. Usually, it is a toss-up between getting a financial review vs audit for HOA books. For some HOAs, there is a need to…
HOA accounting is a vital part of operating a homeowners association, but it can be very tedious and difficult. Because it is so important, you want to avoid inaccurate or incomplete financial reports at all costs. The first step to financial success is to use the best HOA accounting method. The Three Types of…
Modified Accrual Accounting is one of the most popular forms of accounting methods for HOAs. At first, it can be difficult to master for those that do not have prior experience in the accounting sector. To learn more about how to apply Modified Accrual Accounting to your HOA’s books, read and understand the information below.…
An HOA statement of receivables, or accounts receivable statement, is a document that details the outstanding charges owed to the community association. This can be from sources such as overdue assessments, vendor credits, late fees, or any other outstanding source of income. It is essentially a list of every account that still owes the HOA…
Among the many financial statements of an organization, the income statement is one of the most essential. But, what does an HOA income statement include? And what purpose does it serve a homeowners association? Let’s find out. What Is an HOA Income Statement? To put it simply, an HOA income statement shows the revenues…
A homeowners association must keep track of its financial transactions to accurately report and assess its financial health. In order to do this, you must have a central location and an organized procedure for recording your finances. Enter the HOA general ledger. In this artcle: What Is a HOA General Ledger? The Importance of…
Whether you are aware of them or not, HOA bank statements are a necessary tool in assessing the financial health of your organization. But, for many people, understanding bank statements is an uphill battle. Here is everything you need to know about HOA bank statements. What Are HOA Bank Statements? HOA bank statements, also…
Any homeowners association relies on the standard financial statements to assess its financial health. One of these statements is the balance sheet. But, what actually goes into HOA balance sheets? And what is the key to understanding them? In this article: What Is a Balance Sheet? Parts of HOA Balance Sheets Assets Liabilities Equity…
HOA accounting is probably one of the most complex, and most important, responsibilities of the association board. Preparing financial reports on a regular basis is important for many reasons. They help with financial planning. They also promote transparency between the board and members or it can also be a law requirement. The frequency of preparation…
HOA bookkeeping is an essential aspect of association management. However, as many HOAs lack accounting and finance experience, it can be a struggle to deal with bookkeeping tasks and responsibilities. This can result in financial mistakes that could harm your community. If you need help in this area, it might be time to consider a…