What is HOA accounting and how it helps the HOA association?

What is HOA accounting and how it helps the HOA association?

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Homeowner association carries a great responsibility over their shoulders as they need to manage the condition of their community and neighborhood. These associations mainly maintain the common area of their townhomes that includes parking garages, fitness rooms, landscapes, swimming pools, sidewalks, building extensions and every common area. In order to maintain these common areas these associations take a monthly charge from the community members of the townhouse or any building so that when any maintenance work needs to be done they make use of that collected money. However, all the money that is collected will go to the society or community bank and HOA members also need to maintain the accounting of the money they receive, spend etc.

How to ease HOA accounting?

Maintaining an account is never considered as an easy task and moreover it can create a lot of tension. This is because if you forget or miss to mention any of the entries then it misbalances your accounting sheet and it might also create a trouble in future. So, in order to remove the pressure of HOA accounting from your shoulders it is best advised that you should hire any good accounting firm that can do the HOA accounting for you. To know more about these firms you can also visit to the given link www.clarksimsonmiller.com/hoa-accounting.

If you hire these firms they do the regular entry about the money received from the community members and properly manage all the accounting work. They give HOA board members a monthly, quarterly and yearly report in which they indicate the current amount the company has, how much money they received from community members, where they spent the money and most importantly the balance sheet.

Balance sheet – Balance sheet presentation is very important because it shows that financial status or condition of the homeowner association. Balance sheet only shows the amount that is owned by the associations at the moment. Providing an accurate balance sheet is very important because it will help the HOA board members to do the future planning about the development of the common spaces and more.

General ledger – in order to bring transparency in their work they maintain this ledger in which they write down the details of every transaction in numerical. This ledger shows where the money is paid and when it was received and many more. If any board member wants to check the details of their account they are free to do so at anytime.

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