- September 21, 2020
- Posted by: Mike Madson
- Category: Article, Business plans, communities, Community, Competitive research, Development, Finance & accounting, Finance & accounting, Franchising, Funding trends, HOA, homeowner association
In a typical homeowner association, volunteer Board members are already overburdened with their own lives and spend an enormous amount of energy on administering their association, particularly performing accounts payable and receivable activities. What Board members should be doing is focus their attention on the quality their membership.
Constant bookkeeping and account management tasks are generally at the core of attention for a Board member. To perform these activities, bookkeeping gets the lion’s share and less is attention is spent on elevating their community’s culture. Ironically, when a Board interacts more with their membership, there is a higher correlation to community satisfaction. Multiple HOA studies report that a greater sense of community results in higher compliance, higher rates of payment, greater engagement with neighbors and less violations.
Generally, associations look to hire third-party accountants or bookkeepers for performing these tasks, but the costs are expensive, and many associations are strapped as it is. However, progressive HOAs are looking to integrate online bookkeeping, to refocus their Board’s time which would be better spent managing their homeowners on a personal level.
- Enhancing Efficiency
By integrating an online HOA accounting service, an HOA Board will be relieved of the bookkeeping duties and can divert the time saved in more productive activities which are directly related to the revenue earning potential of the organization, i.e., association satisfaction.
- Helpful in Future Planning
Bookkeeping services will help in maintaining proper records of financial data, i.e., insurances, landscapers and sub-contractors, irrigation systems, CPAs, State filings and so forth. This can help in making future plans by carefully analyzing the data. The services offered by online bookkeepers are extremely reliable and can help in creating a road map for the business.
- Access to Software
Most people who become Board members are not well versed in using the latest DIY HOA accounting software. By hiring online services, they will have access to them without purchasing them or learning to use them. This software is written specifically for HOAs and perform many bookkeeping functions automatically and don’t require the users to master financial tasks.
- Helpful in Remaining in Touch
DIY HOA accounting helps Boards to remain in touch with the financial information by using mobile phones or other digital technology, 24/7. This technology is updated in real time and extremely useful for Board members who are more likely to manage their time through data sharing.
- Quicker Invoicing
Sending invoices and payment notifications is a time-consuming activity for any association. The completion of these tasks in a timely manner is essential to maintain the financial health of an association. Online bookkeeping helps in achieving this goal. By receiving member’s dues faster an association can speed up its operations. This can help in their financial growth.
Each HOA must give proper importance to its accounting functions. By opting for DIY online services, you will be assured of efficiency in this field by reducing paperwork, reducing postage expense, eliminating outside third-party services, and great transparency with its membership.
Are you looking for a reliable online partner to manage your accounting and bookkeeping tasks owing to the lack of time and infrastructure? Contact MGM Management, a leading management outsourcing firm. They have the best technology in place and cater only to HOAs. Their software provides efficient and accurate accounting services. Call us at (208) 846-9189 or visit www.gomgm.com.