- November 2, 2019
- Posted by: Scott
- Category: associations, Business plans, communities, Community, Economics, Finance & accounting, HOA
Idaho HOAs should outsource their bookkeeping to reduce liability and to allow the Board to focus on the well-being of their community. Too much Board time is spent collecting dues when instead they should be modeling community values. HOA culture is best influenced when a Board leads and models shared behavior which, in turn, raises compliance and instills a collective pride within their community.
Board members volunteer their time, are unpaid, and often pursue the Board for personal reasons. These are individuals who should not be given fiduciary responsibility. This combination produces a conflict of interest and results in an attractive place for false reporting, under-reporting or no reporting.
Property owners are pushing for transparency, because they realize exposure to criminal misconduct and mismanagement of funds pull property values down, as well as to negatively impact the community’s culture.
Historically, one member of the Board would volunteer as the association’s bookkeeper, because the cost of hiring an outside accountant was prohibitive and would increase dues. As it is, HOAs are financially stretched, and this forces HOAs to perform this service internally. Integrated accounting tools written specifically for HOAs, cost less than hiring a bookkeeping service and are now available.
MGM Association Management is a third-party, financial, administrator designed as an adjunct to replace anyone who directly handles an HOA’s financial records. Their accounting program automates the collection, billing and receivable processes. The program doesn’t remove the Board from controlling or overseeing their finances; it simply removes them for the collection and accounting process. It is a service performed at the direction of the Board; but will save them time and allow the Board to focus on other community concerns.
The program has a complete suite of HOA services, such as automatic bill pay to vendors, budgeting, forecasting, and for communicating with the membership. These services are performed with up-to-date reporting, as it happens, and in real-time; is accessible by Board members and the entire membership, 24/7 as long as one has an Internet connection.
The program is designed to increase the efficiency and productivity, giving a community the competitive edge; needed to thrive and grow.
- 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.
In summary, these tasks were designed for an unpaid, volunteer Board member to do or not do. MGM’s intent is to keep your HOA independent, and solvent, without having a management company involved. Whether the HOA is large or small, this is program is ideal for HOAs that are looking for financial transparency and quality interaction with their Board while at the same time seeking to keep their dues low.
MGM is transforming Idaho HOAs, helping Boards to better focus their time on their community’s culture. For a quick demonstration about this online accounting program, contact MGM at (208) 846-9189 or go to www.gomgm.com.