Why You Should Outsource Your HOA Accounting
As volunteers, HOA board members are not always able to sufficiently manage their responsibilities, either because of a lack of expertise or due to time constraints. Finances and budgeting are often the most difficult work for board members to manage, especially if nobody on the board has a background in finance. Spending your members’ dues responsibly and protecting your association’s financial health is a top responsibility of the board, so consider hiring outside help if you are not able to manage the task on your own.
Save Hundreds Of Dollars
If your association, like everyone else, is looking to cut costs, then you should consider outsourcing your accounting services to a professional financial services company that services community associations. Outsourcing accounting services is a cost-effective solution that can save your association a large sum of money in the long run. Instead of employing your in-house accountants, bookkeepers, and CFO’s, it often makes much more financial sense to outsource the duties of these positions whenever they may be needed.
Even if your HOA is currently self-managed, outsourcing your association’s finances is a smart move that can pay off in the long run. Outsourced financial professionals offer a high level of experience, expertise, and value. Here are some ways outsourcing your finances with a proven HOA financial services company can help your association.
The Professionals Have the Necessary Experience and Expertise
The financial professionals at reputable HOA accounting companies know what they are doing. They have worked with a diverse set of clients and can use their knowledge and experience to help your association’s board of directors achieve the level of financial health it needs. Just as importantly, they have the necessary flexibility to respond to issues as they arise and mitigate potential setbacks.
When you outsource, you place your accounting in the hands of experienced professionals who understand industry standards and requirements. The outsourced accounting professional’s work product is held to a high standard. The actual process of accounting requires a high standard but also does the reputation of the professional accounting service provider that employs them.
Experienced accounting professionals have the tools and the knowledge to help board members make smart financial decisions for their community. They can provide deep financial analysis and financial health forecasting by developing strong short-term and long-term financial strategies, and use their experience to contribute to your association’s success by managing several tasks, such as assessment collections, accounts payables, creating detailed financial reports and analysis, and more!
Reputable financial services companies also employ professionals who can give you expert guidance. From time to time, everybody is going to need advice from somebody with a high degree of subject matter expertise, such as setting up a stock option plan for your employees, implementing a Key Performance Indicator report, or analysis of a recent financial report. When you outsource, it is the job of an experienced, reputable accounting service provider to and to give you professional guidance and keep you aware of changes in the law that can potentially affect your association.
The Professionals Use the Latest Technology
Most reputable HOA accounting companies have the latest tools and accounting technologies that allow them to solve complex problems quickly and easily. Additionally, they use available online resources such as online payment, with auto-debit payment and credit card payment options available. Online resources allow community members easier methods of payment and communication, which saves your association both money and time.
Your community association likely does not have the resources to access the latest accounting technology and online tools on their own, so partnering with a reputable financial management company can greatly benefit your team in many ways. On the same note, using the latest technology will greatly enhance security and protect your association’s sensitive information. A professional accounting service provider can greatly increase security for your books and financial records.
These companies use strict safeguards to ensure confidentiality, controlled access, and reliable data backup. Many people do not think about security but consider how your existing in-house security systems currently protect your confidential information and data from hackers, fire, theft, etc. When you enlist the help of a professional financial services company, you will probably be pleasantly surprised when you see that previous security vulnerabilities have been addressed.
The Professionals Will Get it Done on Time
If you are looking for timely and reliable service, outsource your association’s finances with a reputable financial services company. If you choose a high-quality service provider, you can rest easy knowing that the work will be done accurately and in a timely fashion. If you’d like, get referrals from other HOAs and associations to ensure that the company you go with is reputable.
The Professionals Can Save You Money and Increase Efficiency
Looking for cost savings? We all are. Who wouldn’t right? Outsourcing your accounting needs with a professional financial services provider can save you big money over the long haul. Most importantly, you can avoid unnecessary and excessive operational costs when you outsource your accounting services. Often, managers believe that in-house staff will be less expensive than outsourcing, based on their hourly wage. The reality is that when you look further into the overall costs on top of salary and wages, such as training, supervising, benefits, and payroll taxes, the total compensation for an in-house staffer is far higher than outsourcing.
The Professionals Can Increase Your Operational Efficiency
If outsourcing your accounting obligations is cheaper than hiring in-house, why aren’t more association’s doing so? You may be asking that question right about now, and so are we. Cost savings are a big upside of outsourcing your association’s accounting, but another major benefit of outsourcing is that you can more efficiently use your existing personnel. For example, if you outsource routine and/or basic accounting tasks, your in-house staff can focus their time, resources, and energy on more important tasks and core services. Plus, outsourcing removes the unnecessary burden of finding meaningless or relatively unimportant work to fill up the schedules of your in-house accounting staff.
When you outsource your accounting services, you only pay for the services that you need, thus saving you big money. Because of this, you can focus your resources and staff on important business development measures. Instead of burdening staff with basic accounting tasks, allow your team to focus on addressing initiatives that most help your association’s financial viability.
The Professionals Make Communicating Easy
Many associations don’t want to initiate the outsourcing process because that means your accounting team is not on-site. It is understandable to be concerned that outsourcing your accounting services will cause communication to suffer. However, most outsourced accounting professionals are just as responsive as someone in-house.
Advancements in technology have made it much easier to communicate. Tools such as video meetings, conference calls, group emails, and Skype are effective ways of having face-to-face interactions with your outsourced personnel. Plus, in case of an emergency, when something needs immediate attention, an outsourced agency is merely a phone call, video chat, or email away. Outsourced financial professionals are by nature very flexible and can work with problems that come up unexpectedly.
Outsourcing Is An Investment
Your association has its own set of unique outsourced accounting needs. Find an outsourcing company that invests in your association’s success, and helps address the challenges and issues your association is facing.
Outsource Your HOA Accounting Needs With CSM
Clark Simson Miller is a professional firm that provides remote management, accounting, and financial services for community associations and managing partners of all sizes within the United States. Our direct association services help volunteer board members reduce overall management costs while having an alternative to full-service management functions provided by local companies. For more information or to receive a free quote, contact us online or give us a call at (865) 315-7505.