5 of the Best HOA Accounting Software Solutions in 2025

We are a team of professionals dedicated to providing the best quality service to each of our clients, all at an affordable price! Please note that we are not a CPA Firm and our bookkeeping services do not require a state license. Common mistakes like failing to reconcile bank statements regularly, neglecting to plan for long-term expenses, and not keeping a reserve fund can have serious implications for the HOA’s financial health. Ensure that all financial transactions are recorded accurately and promptly.

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Achieving financial stability takes a lot of work, attention to detail, and a strong moral obligation to serve the community. Understanding what goes into HOA bookkeeping is essential before deciding how to delegate the various tasks involved. No organization can work smoothly without the proper what are retained earnings management of its financials. If you want to have a prosperous and successful association, master these aspects of accounting.

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That means you only report transactions when you pay for them or receive payment for them. Using this method, no such account titles like Assessments Receivable or Accounts Payable appear on your financial statements. On average, HOA management companies charge a monthly fee ranging from $300 to $1,000 for accounting services, depending on the size and complexity of the accounts payable by the association. Professional HOA accounting services bring a wealth of expertise in financial management and compliance. This ensures the association operates within the bounds of the law and only deploys best practices. There’s no shortage of choices out there if you’re looking for tools to help with HOA accounting.

• Regular financial audits or reviews provide an independent assessment of the association’s financial statements, offering an added layer of confidence to homeowners and board members.
• If funding is coming up short, look for ways to readjust the budget and allocate a higher percentage of association fees to the reserve fund.
• Every day, association funds should be directly deposited into the homeowners association’s bank account and the receivable department should record the deposits.
• We are a team of professionals dedicated to providing the best quality service to each of our clients, all at an affordable price!
• Some aspects of HOA finances involve elements of community management that go much deeper than the selection of a bookkeeper.
• Board members can kick their feet back and watch the payments roll in automatically.

Escrow, Realtor, Lender and Appraiser Services

PayHOA’s bookkeeping service can relieve your volunteers of extensive and complicated HOA bookkeeping tasks without draining your budget. Our bookkeepers allow easy and transparent access to your bank accounts, financial reports, and transactions. With 98 percent client approval, our accuracy in handling HOA financials is proven by our customers’ satisfaction. Being a member hoa bookkeeping of an HOA board means you’re involved in homeowners association accounting. Furthermore, it combats financial dishonesty within the board or among employees.

This leaves no room for Accounts Receivables Assessments Receivable, Prepaid Assessments, and Accounts Payables. It’s important for any homeowners association to keep up-to-date on their payments to vendors. After all, you wouldn’t want to develop a reputation as a bad creditor. On the other hand, liabilities are where you record amounts you owe (i.e. accounts payable). While you may have already received the money, prepaid assessments have yet to Bookkeeping for Chiropractors be earned. He also takes care of all of our bookkeeping and accounting clients each month and has helped those HOAs prepare their annual tax form each year.

What are the benefits of using an HOA accounting service?

• It objectively evaluates your internal accounting processes as well as the overall health of your association.
• Your HOA board has a duty to manage the association’s finances correctly.
• HOAs can maintain all the independence, transparency, and concern for the community that comes with being self managed while enlisting professional help.
• This transparency not only improves internal controls but also promotes trust among board members.
• They may take certain steps to correct entries before preparing the report.

With every month that passes, the value of the unused insurances decreases. Now, accounting can be quite stressful for community managers to navigate. With so much money going in and out, sometimes on a daily basis, it can be a challenge to stay on top of it all.

HOA Accounts Payable

The company helps collect and deposit dues, pay bills, and prepare the annual budget. LBPM also provides a number of financial statements including bank reconciliations. Apart from that, LBPM also works with escrow, loan, and title companies to ensure smooth real estate transactions. This can start with generic accounting software—thinkQuickbooks—but you really start to see time savings and ROI with tools that are purpose-built for association and property management. For example, CondoWorks can automate the accounts payable process while Alliance Association Bank seamlessly integrates your banking and accounting platforms. Services like Axela Technologies can even help you handle accounts receivable and collections.

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Having an independent third-party bookkeeper double-check your HOA’s bookkeeping practices improves the accuracy and consistency of your financial records, preventing mistakes and internal misuse of funds. Not only can an external bookkeeping service double-check your processes for human error, but some use modern-day automation to avoid human error in the first place. The balance sheet includes insurance because it’s usually paid for in advance and then capitalized on the report. As the insurance gets used, the balance of the asset will decrease until there’s nothing left. If your homeowners association gets a year-long policy for $1,200, you will add that amount to January’s balance sheet as the policy value. Every month, you will tag $100 of that amount as an expense and the value will go down by $100.

Homeowners associations (HOAs) play a pivotal role in enhancing the quality of life within a community. The efficient management of an HOA involves intricate financial processes that can be challenging without professional support. Consequently, many communities seek help from third parties that provide HOA accounting services.