- September 22, 2019
- Posted by: Scott Setterlund
- Category: associations, Business plans, communities, Community, Economics, Finance & accounting, HOA, Innovation
Looking to outsource your HOA’s bookkeeping to reduce liability? Today’s Internet savvy associations are ready. MGM Association Management, an Idaho-based association manager, has transformed bookkeeping processes for HOAs who want to remain independent without having to sign up for costly management services.
MGM offers an online, accounting tool, written specifically for HOAs. Much like your water, trash and electric service providers, this tool was created for the purpose to mitigate a Board’s liability and to alleviate any potential threats of mismanagement. HOAs realize their exposure to criminal misconduct and mismanagement of funds puts all homeowners at risk. The primary driver for this behavior is because Board members are unpaid and often pursue the Board for personal reasons. This combination produces a conflict of interest and results in an attractive place for false reporting, under-reporting or no reporting.
MGM is a third-party administrator designed as an adjunct to replace anyone who directly handles an HOA’s financial records.
In the past, a homeowner volunteered to act as the membership’s bookkeeper, as the cost of hiring an outside accountant increased their dues. Too many are financially stretched, and this forces HOAs to perform this service internally.
The online program has a complete suite of HOA services, and is priced lower than hiring an outside accountant or bookkeeper. HOA accounting nuances such as collecting homeowner dues, paying vendors on a timely basis, budgeting, forecasting for potential maintenance issues, communicating with the membership and the value of reserve funding are automated to keep the membership and the Board informed. These services are performed with up-to-date reporting and in real-time; accessible 24/7 as long as one has Internet connection.
The program is designed to increase the efficiency and productivity of an HOA’s financial reporting, giving your community the competitive edge that it needs to thrive and grow. Here are a few other features worth noting:
- Fully integrated accounts receivable
- Automated billing and collection procedures
- Delinquency controls
- Instant messaging
- Accounts payable and general ledger modules
- All data is processed and managed in real-time.
- Integrated G/L budgeting
- Automated budget generation
- Unlimited customized reports and parameters
- Access to over 440 pre-configured report templates
- All data is populated in real-time.
These are the tasks that an unpaid, volunteer Board member would have to do or not do. MGM’s intent is to keep HOAs independent, and solvent, without having a management company involved. Smaller HOAs who are looking for financial transparency are particularly ideal for this service, while at the same time keeping their dues low.
MGM is helping Boards to refocus their time on building their community’s culture and by implementing activities that preserve property values. For more information about this online accounting program, contact MGM at (208) 846-9189 or go to www.gomgm.com.