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…
HOAs, regardless of their size, need a formal structure. They need it in order to function in the best way possible for their residents. By having HOA governing documents, it is easier to resolve potential disputes that may occur down the road. Whether you are on the board of your HOA or simply a member,…
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…
What are reserve funds? Homeowners association reserve funds are one of two principal accounts necessary to manage your community. As a homeowner who pays monthly dues, you should understand the purpose of reserve funding and how it is used by the association. Here’s everything you need to know about HOA reserve funds. What Are…
Does your homeowners association need professional help? Is there no room in your budget for an on-site HOA manager? Enter remote HOA management — the answer to all your problems. Hiring Remote HOA Management Services There are a million ways where things could go wrong when it comes to living in a community and…
Some HOA board members might consider accounting boring or difficult, but its role in financial stability is undeniable. Before anything else, your HOA must decide on a basis of accounting to use for financial reporting. While the cash basis for HOA financial statements is the easiest, it’s not exactly the best. Using Cash Basis…
The financial responsibilities of HOA boards are far-reaching and wide. While some of these responsibilities are obvious, others may surprise you. Let’s break down the many financial duties you, as a board member, must fulfill. Remember These Financial Responsibilities of HOA Boards As a member of an HOA board, you are representing your entire…
Amenities. Comfortable community-living. Security and peace of mind. These are just some of the things that draw people to homeowner association communities. Services provided by homeowners association vendors are vital to keep a community attractive. Are you getting the right vendors for your HOA? The vendors in a community need to be vetted to ensure…
One of the essential duties of the HOA board is to review the annual budget and make adjustments when necessary. Unfortunately, not every budget will have enough wiggle room especially when it comes to operating expenses. The good news, however, is that there are other measures that can help trim your budget to more manageable…