HOA Accounting and Management Articles and Advice
Many homeowners associations mistakenly believe that they require full-service management for smooth operations. However, this kind of mindset might cause associations to overspend on an expense they don’t even need.
Tax season is always a stressful time of the year. One of the questions HOA residents commonly ask is, “Are HOA fees tax deductible?” The answer, though, is not as simple. Are HOA Fees Tax Deductible? A homeowners association runs a community by imposing certain rules, preserving its aesthetics, and maintaining various aspects of…
The coronavirus outbreak has forced many businesses to redefine the way they hold meetings. Homeowners associations are not exempt from this. Because board members make decisions during board meetings, most HOAs are concerned about halting operations amid the outbreak. But through HOA remote meetings, your HOA can continue to run without hindrance. In this…
Managing and overseeing the finances of your HOA should be one of the board’s main priorities. That said, many HOA board members may not have experience with HOA financial reports. If you still have questions about financial reports of your association, here’s what you need to know. HOA Financial Reports and The Board’s Responsibility…
A homeowner wants to know whether their payment was received. A contractor is waiting for an invoice approval. Another resident has emailed three board members about the same maintenance issue. Meanwhile, the treasurer is trying to prepare financial information for the next meeting. None of these tasks is unusual. The challenge is keeping them organized…
An HOA chart of accounts offers structure to an association’s financial ledgers and reports. It makes it easier for board members to read and interpret the financial statements, enabling them to monitor cash flow. Associations without a clear and effective chart of accounts may have trouble organizing and understanding their records. What is an…
Rising foreclosure rates can result in challenges for HOAs, both in operations and finances. As more homeowners struggle with mortgage payments, associations may also see more delinquent dues and vacant properties. Board members must understand how foreclosure affects communities and prepare for any possibility. What Rising Foreclosure Rates Mean for HOAs There has been…
In recent years, HOA manager safety has become a growing concern. Managers often interact with homeowners, and in emotionally charged situations, things can quickly get out of hand. This has led some to start wearing body cameras, but privacy and liability concerns have made the move more complicated. The Rise of HOA Manager Safety…
When funding is scarce, many communities turn to HOA grants. Yet, grants are not always readily accessible, and there is a process for selecting and applying for qualifying subsidies. Board members must understand which grants are worth a second glance, whether they are eligible, and how to submit a complete and convincing application. What are…
Just because an association wants to change the HOA manager doesn’t mean it has to fire the entire management company. If the problem is solely with the individual, board members can usually request a reassignment. To do that, it is important to learn the common reasons behind swaps, what the process entails, and the board’s…
The HOA accounts receivable report should be a part of any association’s arsenal of financial statements. While seemingly unimportant, this report can help determine the community’s financial position and inform the board’s decisions. Every association board must learn how to read and understand this report. What is the HOA Accounts Receivable Report? The HOA…
The HOA budget process is understandably complicated, especially without coordination between the board and management. Still, the annual budget plays a critical role in an association’s operations, both in the short and long term. Learning what roles boards and management companies fulfill is the first step in ensuring healthy finances. The Importance of the…
No one can argue that donating to charity is a good deed, but can an HOA donate to charity? This is another subject entirely. Because associations source their funding from homeowners, it can ruffle some feathers when boards unilaterally decide to make a donation. Before making the jump, board members must first consider all sides…
Perhaps one of the best ways to get homeowners involved is to encourage HOA volunteers. Yet, attracting volunteers is an ongoing challenge that many boards face. While boards are primarily responsible for managing the community, they often achieve this goal by securing support from volunteers. The Importance of HOA Volunteers Volunteers play an essential…