- November 9, 2020
- Posted by: Mike Madson
- Category: Article, associations, Business plans, communities, Community, Development, Economics, Finance & accounting, HOA, homeowner association, Innovation
HOA Board members volunteer their personal time to manage their subdivisions. In return, they spend an enormous amount of energy on administering its business functions. This commonly takes their attention away from the most important aspect of volunteering, that is, attending to their community’s health.
The first sign of failure is when a Board’s entire focus in on the collection of dues. Should those tasks be taken away, what is left, is to build a better community through engagement and involvement.
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.
In the past, homeowner associations have looked to hire bookkeepers for performing these tasks. However, these costs are expensive, and many associations are reluctant to increase dues. Alternatively, DIY online accounting is more accepted due to a greater sense of trust in third party services, lower cost to administer and an unwillingness of homeowners to accept accounting errors. Online accounting services function similarly to your electric, water or trash bills. A personal account is set-up and homeowners, then, access their financial (or their HOA’s financial statement), CC&Rs, architectural request forms or a whole host of tools. Access to this data refocuses a Board’s time which is better spent managing on a personal level.
- Enhancing Efficiency
By integrating an online accounting service, an HOA Board is relieved of the bookkeeping duties and diverts the time saved to more productive activities which are directly related to the revenue earning potential of the organization, i.e., association satisfaction.
- Helpful in Future Planning
An online accounting service helps in maintaining proper records of financial data, i.e., insurances, landscapers and sub-contractors, irrigation systems, CPAs, State filings and so forth. This helps in future planning by analyzing data trends. The services offered are extremely reliable, insured and can help to create a road map for the future.
- Access to Software
Most people who become Board members are not well versed in using online programs. Fortunately, the DIY HOA Accounting software is simple to set-up and written specifically for HOAs. All business functions are performed automatically, and it does not require the Board to master financial tasks.
- Helpful in Remaining in Touch
DIY HOA accounting allows the Board and its membership to access the financial information by using their mobile phones or other digital technology, 24/7. This technology is updated in real time and extremely useful for Board members who can manage their time through data sharing.
- Quicker Invoicing
Finally, 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. DIY HOA accounting achieves this goal. By receiving member’s dues faster, an association can speed up its operations. This helps in their financial growth.
Every HOA should give proper importance to its accounting functions. By opting for DIY online services, you are assured of efficiency by reducing paperwork, reducing postage expense, eliminating outside third-party services, and greater transparency.
Look for a reliable online partner to manage your accounting and bookkeeping tasks. For more information, contact MGM Management, a leading management outsourcing firm. They have the best technology and serve only HOAs. Their software provides efficient and accurate accounting services. They can be reached at (208) 846-9189 or visit www.gomgm.com.