Does your property management company use a resident app? More and more companies are using mobile applications to support their company growth in the current digital era. The potential uses for mobile applications are limitless, ranging from maintaining customer connections to processing payments.

Property managers are beginning to see these benefits and use technology to increase communication, streamline operations, and improve the overall experience for their residents. Community management companies are increasingly using customized resident applications, which may act as a hub for residents to obtain crucial information, receive communications, and much more.

Read on for a list of six ways you may use a resident app to enhance the resident experience.

Table of contents

1. Communications
2. Payments
3. Architectural Requests
4. Violation History
5. Work-Orders and Service Requests
6. Document Storage

As a homeowner, you may be asking yourself what use you have for yet another log-in or application on your phone to remember. In this article we will break down effective ways to communicate how the use of the resident app can streamline management and improve the overall resident experience.

Top 5 HOA Accounting KPIs To Measure

Why is it important to measure HOA accounting KPIs?

Homeowners associations (HOAs) are responsible for managing the finances of the communities they oversee. Effective financial management is essential for the success of an HOA, as it ensures the community has the necessary funds to maintain and improve its amenities. To accomplish this, HOAs should regularly measure and track key performance indicators (KPIs) related to their financial health. In this article, we will discuss the top 5 HOA accounting KPIs that you need to measure for financial success.

KPI 1: Operating Fund Balance Ratio

The Operating Fund Balance Ratio is a KPI that measures an HOA’s ability to pay its operating expenses. This ratio is calculated by dividing the operating fund balance by the total operating expenses. A high ratio indicates that an HOA has sufficient cash on hand to pay for its operating expenses.

It is important for HOAs to track this KPI because it can help them identify potential financial problems before they become serious. For example, if an HOA’s operating fund balance ratio is low, it may indicate that the HOA is having trouble collecting dues from its members or that it is spending too much money on operating expenses. By tracking this KPI, an HOA can take corrective action before the problem becomes critical.

To improve the operating fund balance ratio, an HOA can take several steps. One is to increase revenue by increasing dues or fees. Another is to decrease expenses by negotiating lower prices with vendors or by reducing unnecessary expenditures.

KPI 2: Reserve Fund Strength Ratio

The Reserve Fund Strength Ratio measures an HOA’s ability to pay for unexpected expenses. This KPI is calculated by dividing the reserve fund balance by the total reserve expenses. A high ratio indicates that an HOA has sufficient funds set aside to pay for unexpected expenses.

It is important for HOAs to track this KPI because unexpected expenses can arise at any time. For example, if a major piece of equipment fails, an HOA may need to replace it immediately. If the HOA does not have sufficient funds set aside to pay for this expense, it may need to borrow money or delay necessary repairs. By tracking the reserve fund strength ratio, an HOA can ensure that it has sufficient funds set aside for unexpected expenses.

To improve the reserve fund strength ratio, an HOA can take several steps. One is to increase revenue by increasing dues or fees. Another is to decrease expenses by negotiating lower prices with vendors or by reducing unnecessary expenditures. An HOA can also consider investing its reserve funds to earn a higher rate of return.

KPI 3: Delinquency Ratio

The Delinquency Ratio measures the percentage of dues that are past due. This KPI is calculated by dividing the total amount of past-due dues by the total amount of dues owed. A high delinquency ratio indicates that an HOA is having trouble collecting dues from its members.

It is important for HOAs to track this KPI because dues are the primary source of revenue for most HOAs. If members are not paying their dues, the HOA may not have sufficient funds to pay for necessary expenses. By tracking the delinquency ratio, an HOA can identify members who are not paying their dues and take corrective action.

To improve the delinquency ratio, an HOA can take several steps. One is to enforce its collection policy more rigorously. Another is to communicate more effectively with members about the importance of paying their dues. An HOA can also consider offering incentives to members who pay their dues on time.

KPI 4: Occupancy Rate

The Occupancy Rate measures the percentage of units that are occupied by owners or tenants. This KPI is calculated by dividing the number of occupied units by the total number of units. A high occupancy rate indicates that an HOA’s community is desirable and that the HOA is generating sufficient revenue from dues and fees. It also indicates that the HOA is maintaining its amenities to a high standard, which is important for attracting new members.

It is important for HOAs to track this KPI because a low occupancy rate can indicate a problem with the community or with the HOA’s management. For example, a low occupancy rate may indicate that the community is not well-maintained or that the HOA is not effectively marketing its amenities to potential members. By tracking the occupancy rate, an HOA can identify potential problems and take corrective action.

To improve the occupancy rate, an HOA can take several steps. One is to improve the community’s amenities to make it more attractive to potential members. Another is to increase marketing efforts to attract new members. An HOA can also consider offering incentives to current members to encourage them to refer new members.

KPI 5: Maintenance Expense Ratio

The Maintenance Expense Ratio measures the percentage of total expenses that are spent on maintenance. This KPI is calculated by dividing the total maintenance expenses by the total operating expenses. A low maintenance expense ratio indicates that an HOA is effectively maintaining its amenities while keeping expenses under control.

It is important for HOAs to track this KPI because maintenance expenses can quickly become a significant portion of an HOA’s budget. By tracking the maintenance expense ratio, an HOA can identify areas where it may be able to reduce expenses without sacrificing the quality of its amenities.

To improve the maintenance expense ratio, an HOA can take several steps. One is to negotiate better prices with vendors for maintenance services. Another is to use more cost-effective materials and equipment for maintenance. An HOA can also consider outsourcing some maintenance services to reduce expenses.

Conclusion

Effective financial management is essential for the success of an HOA. By regularly measuring and tracking key accounting KPIs, an HOA can identify potential problems before they become critical and take corrective action. The top five accounting KPIs discussed in this article are the Operating Fund Balance Ratio, Reserve Fund Strength Ratio, Delinquency Ratio, Occupancy Rate, and Maintenance Expense Ratio. By incorporating these KPIs into their accounting strategy, HOAs can ensure their financial success and maintain a high quality of life for their members.

Solution

Consider simplifying your business workflows by adopting a single platform that encompasses all aspects of your operations. From managing finances and handling work orders to tracking violations, avoid the hassle of duplicate data entry and gain instant access to your financial information. With a cloud-based system like Smartwebs, seamlessly integrate your association’s financials with the rest of your business processes.

By streamlining your accounting and reporting procedures, you can save time and create space for expansion. Smartwebs provides a comprehensive solution for managing all of your association’s financial responsibilities, including bank integrations and versatile accounting and reporting tools. Let us help you simplify your operations and achieve your goals. Book a demo today: Schedule a demo

Lower HOA Fees: 6 Tips for Property Managers to Save Money

As a property manager in a homeowners association (HOA), you know how challenging it can be to keep the budget in check. One of the most significant expenses that HOAs face is the cost of maintaining common areas, such as landscaping, pools, and clubhouses. These costs are typically covered by HOA fees paid by homeowners, but high fees can be a source of stress for both you and your residents.

Tip #1: Conduct a Budget Audit

Regularly reviewing your HOA’s budget is crucial to keeping costs under control. Here are some reasons why:

1. Identify areas of overspending – By reviewing your budget regularly, you can identify areas where your HOA is overspending. This might include non-essential services or unnecessary upgrades.
2. Find opportunities for cost-cutting – Once you’ve identified areas of overspending, you can look for ways to cut costs. This might include reducing non-essential services, finding more cost-effective solutions, or negotiating with vendors.
3. Plan for future expenses – By reviewing your budget regularly, you can plan for future expenses and avoid surprises. This might include planning for maintenance and repairs, as well as larger capital projects.

To conduct a budget audit, follow these steps:

1. Review your budget line by line – Look at every expense in your budget and ask yourself if it’s necessary. Consider whether there are any areas where costs could be cut.
2. Look for opportunities to save money – Once you’ve identified areas of overspending, look for ways to save money. This might include negotiating with vendors or finding more cost-effective solutions.
3. Prioritize expenses – Prioritize essential expenses, such as maintenance and repairs, over non-essential services. This will help you allocate your budget more effectively.

Tip #2: Negotiate with Vendors

One of the biggest expenses for an HOA can be maintenance and repairs. But did you know that you can often negotiate with vendors to lower their costs and save your HOA money? Here are some tips for negotiating with vendors:

1. Get multiple quotes – Before you choose a vendor, get quotes from multiple providers. This will give you a better sense of what the market rates are, and you can use that information to negotiate.
2. Ask for a discount – Don’t be afraid to ask for a discount! Many vendors are willing to offer a discount if you sign a long-term contract or pay in advance.
3. Bundle services – If you need multiple services from a vendor (such as landscaping and snow removal), ask if they’ll offer a discount for bundling services.
4. Consider DIY solutions – Depending on the scope of the project, you may be able to handle some maintenance and repairs in-house. This can save your HOA money on labor costs.
5. Research alternative vendors – If you’re not happy with the prices you’re getting from your current vendors, research alternative providers in your area. You may find a vendor who offers better rates or more flexible pricing options.

By negotiating with vendors and exploring alternative options, you can save your HOA money on maintenance and repair costs. Don’t hesitate to advocate for your community and seek out the best solutions that fit your budget.

Tip #3: Reduce Energy Costs

Reducing energy costs is a great way to save money for your HOA and reduce your community’s carbon footprint. Here are some tips for reducing energy costs in common areas:

1. Switch to LED lighting – LED lighting is more energy-efficient than traditional lighting and can save your HOA money on electricity costs.
2. Install motion sensors – Motion sensors can be installed in common areas to automatically turn lights on and off, reducing energy waste.
3. Upgrade to energy-efficient appliances – Energy-efficient appliances, such as refrigerators and washing machines, can save your HOA money on electricity costs over time.
4. Use programmable thermostats – Programmable thermostats can be used to automatically adjust the temperature in common areas, reducing heating and cooling costs.

To encourage residents to make energy-efficient upgrades in their own homes, consider the following tips:

1. Host educational events – Host events to educate residents about energy-efficient upgrades they can make in their own homes. This might include information on energy-efficient lighting, appliances, and insulation.
2. Offer incentives – Offer incentives to residents who make energy-efficient upgrades, such as a discount on their HOA fees or a gift card to a home improvement store.
3. Provide resources – Provide residents with resources on energy-efficient upgrades, such as a list of recommended contractors or a guide to energy-efficient products.

By reducing energy costs in common areas and encouraging residents to make energy-efficient upgrades in their own homes, your HOA can save money while also minimizing its environmental impact.

Tip #4: Find Affordable Insurance

Insurance can be a significant expense for your HOA, but there are ways to find more affordable options. Here are some tips for finding affordable insurance for your HOA:

1. Shop around – Don’t just settle for the first insurance provider you find. Shop around and compare rates from multiple providers to find the most affordable option.
2. Consider bundled policies – Many insurance providers offer bundled policies, which can be a more affordable option than purchasing individual policies.
3. Look for discounts – Some insurance providers offer discounts for HOAs with a good claims history or for installing safety features, such as fire alarms and sprinkler systems.
4. Review your policy regularly – Regularly review your insurance policy to ensure that you’re getting the coverage you need at a reasonable price.

To negotiate lower rates with insurance providers, consider the following tips:

1. Build a relationship – Building a good relationship with your insurance provider can help you negotiate lower rates over time.
2. Ask for discounts – Don’t be afraid to ask your insurance provider for discounts. This might include discounts for bundling policies or for installing safety features.
3. Consider raising your deductible – Raising your deductible can lower your insurance premium, but be sure to weigh the risks and benefits before making this decision.
4. Work with a broker – A broker can help you negotiate with insurance providers and find the most affordable options for your HOA.

By finding more affordable insurance options and working with insurance providers to negotiate lower rates, your HOA can save money on insurance costs and ensure that it has the coverage it needs.

Tip #5: Improve Communication

Inefficient communication among residents, property managers, and the HOA board can result in higher costs for your HOA. For example, if residents are unaware of maintenance schedules, they may submit unnecessary maintenance requests, driving up costs. Here are some tips to improve communication within your HOA:

1. Use software to streamline communication – Using HOA software like Smartwebs can help improve communication among residents, property managers, and the HOA board. The platform allows for seamless communication between all parties and ensures that everyone is on the same page.
2. Send regular updates – Send regular updates to residents on maintenance schedules, community events, and important HOA updates. This will help keep everyone informed and reduce the likelihood of unnecessary maintenance requests.
3. Encourage feedback – Encourage feedback from residents on how to improve communication and community life. This will help build a stronger sense of community and ensure that everyone feels heard.
4. Hold community meetings – Hold community meetings regularly to update residents on HOA business and to provide a forum for residents to voice their concerns and ask questions.

Using Smartwebs HOA software as part of your communication strategy can streamline communication, reducing the chances of miscommunication and minimizing unnecessary costs.

By enhancing communication among residents, property managers, and the HOA board, your HOA can lower costs while fostering a more cohesive and efficient community.

Tip #6: Consider Self-Managing Your Community

Professional management can be expensive for your HOA. If you’re looking to reduce costs, consider self-managing your community. Self-managing your HOA can offer several benefits, including:

1. Cost savings – Self-managing your HOA can save your community money on professional management fees.
2. Increased control – Self-managing your HOA gives you greater control over the management of your community.
3. Greater community involvement – Self-managing your HOA can lead to greater community involvement, as residents take on more responsibility in the management of the community.
4. Increased transparency – Self-managing your HOA can lead to increased transparency in the management of the community.

If you’re considering self-managing your HOA, here are some tips for transitioning from professional management to self-management:

1. Evaluate the feasibility – Evaluate the feasibility of self-management for your community. Consider the size of your community, the level of involvement of residents, and the availability of resources.
2. Establish an HOA board – Establish an HOA board to oversee the management of your community.
3. Create a plan – Create a plan for managing your community, including how to handle maintenance requests, collect dues, and enforce community rules.
4. Train board members – Train board members on their responsibilities and how to effectively manage the community.
5. Seek outside help – Consider seeking outside help from legal, financial, and software professionals to ensure that your community is properly managed.

By self-managing your HOA, your community can save money on professional management fees and create a more involved and transparent community. However, self-management requires careful planning and effective communication among board members and residents.

Conclusion

By implementing these six tips, you can gain better control over your HOA budget and potentially lower HOA fees. Negotiating with vendors, conducting a budget audit, reducing energy expenses, exploring more affordable insurance options, improving communication, and considering self-management are all effective strategies. Together, these approaches can help save money while fostering a more efficient and transparent community.

Remember, effective communication and thoughtful planning are essential for successful budget management. By collaborating and taking proactive control of your HOA budget, you can build a thriving, financially sustainable community.

Common HOA Accounting Challenges

How do you manage dues collection?

Homeowner assessments (HOA dues) provide the primary source of funding for a homeowners’ association’s budget. Homeowners’ associations (HOAs) are able to pay their bills on time when residents pay their dues on time. Supplies are bought, vendors are paid, and reserve funds are added to support upcoming initiatives.

Unpaid dues can result in late fees and a bad reputation for your community management company. Homeowners associations must take dues collection seriously in order to maintain successful management of the property. Even if it means hiring a collection agency, attorneys, or in some cases, an HOA-held lien on a property.

Solution: Offer online payment processing

One way to maintain a positive relationship with your homeowners and ensure timely payments are made is to offer a flexible payment system to homeowners. Use an HOA website portal for simple online payment options. This provides homeowners the freedom to pay dues whenever they want using a credit card, ACH, eCheck, or another payment method.

Smartwebs’ association management software automates interactions and fee assessments with homeowners, saving your management company’s accounting team considerable time. It also provides real-time data and updates on past-due accounts.

Reconciling books (Bank reconciliation)

A bank reconciliation process compares the balance displayed in the HOA’s financial records to the balance shown on the account’s bank statement for the same account. If there is a difference between these two numbers, reconciliation can reveal any mistakes or omissions that may have occurred.

A number of property managers still use limited systems like QuickBooks and Excel spreadsheets to reconcile accounts. As Quickbooks was not built for HOAs, this can often lead to a lot of double data entry, confusion, and inconsistencies which can require more time spent to resolve. This makes reporting a very manual and challenging process.

Solution: Automate reconciliation with an all-in-one property management platform.

Your HOA property management software should offer robust accounting features such as real-time bank transactions and reports. When choosing the best HOA software solution, make sure that it imports bank transactions daily. With the right community association software, you can maintain automated reports of your bank activity, and handle transaction matching in one easy-to-do step. All of these things can spare your staff the time-consuming task of detangling errors at the conclusion of each accounting cycle.

1099’s and year-end close

One of the tasks most people dread all year long is preparing and sending 1099’s. It’s a time-consuming process that can easily turn nightmarish if you don’t have the right tools in place to simplify the process. If you don’t submit your 1099’s on time, you could face steep penalties with the IRS and expose your HOA to audits.

Solution: Utilize Automation

Automation eliminates the risk associated with manual data entry errors while also making the process of 1099s and closing books considerably simpler. The ability to automatically generate 1099s and supporting reports is very valuable since it saves time and guarantees accurate transparency to owners.

When all of your vendors’ and owners’ information is stored in the system, processing 1099s becomes simpler and quicker. Ensure that the 1099-NEC form, which is now necessary to report on vendor earnings, is supported.

Processing duplicate bills 

It’s more common than you may think, a vendor sends a duplicate bill because they didn’t receive payment yet, or they forgot they already sent it in. To make it even simpler to unintentionally process payment twice, they might even alter the invoice date or invoice number.

Solution: Online vendor management system

An important and overlooked aspect of property management accounting is their software’s work-orders capabilities. When your accounting and work orders management are all in one platform you simplify the management process and leave little room for these accounting errors.

Property maintenance shouldn’t mean filling out so much paperwork and then trying to figure out when the work will be started and completed and payments made. With the right HOA software, homeowners can submit requests online and receive an automated email notifying them that it’s being processed. Staff will review the request and assign a vendor who will be notified via email, text, or voice message. Easily track work orders with our unique link so you always know the status. Eliminating the manual process and paper trail, helps you stay on track and eliminate errors such as processing duplicate bills.

Lack of Insight Into Financial Health

Last but not least, it can be quite difficult to gain an understanding of an association’s financial situation. Especially when data is stored in several locations and there isn’t a consistent view. Employing diverse systems can make it more difficult to obtain a complete picture of your association’s finances. Board members may not trust your association or be unsatisfied if your finances are unclear or deficient. Additionally, limited accounting solutions typically don’t provide the ability to generate specialized reports. It becomes difficult for you to clarify matters to your boards and give them the authority to act on behalf of the neighborhood.

Solution: One Platform

Consider adopting just one solution that has every workflow within your business on one platform. From accounting and reporting to violations and work orders. Avoid duplication or manual entry and have immediate access to your finances. Integrate your association’s financials with the rest of your business processes in a single, cloud-based system.

Streamline your accounting and reporting procedures, save time, and make room for expansion with a system like Smartwebs. Easily handle all of your association’s financial responsibilities with the help of Smartwebs. We’ve got you covered, with a variety of bank integrations, versatile accounting and reporting tools, and more.

Summary

As the property manager, you have the option to accept renters with pets or not. However, you may be unaware of the limitations you can impose on the pets you accept and what information you can require upfront. Our pet screening application template gives you the details you require to have all of your queries addressed and have crucial discussions with your potential homeowners who own pets to see if they’re a good fit. 

What is a Pet Screening?

This process is essentially a background check on the pets of your homeowners, conducted by your association or a third-party agency when they move into the community. It provides valuable insight into the pet’s personality, temperament, and behavior. This approach can reveal more information than a single “in-person” encounter would offer.

Inspecting a pet is just as crucial to enforcing your community’s CC&Rs. You may avoid potential property damage and future noise complaints by doing this.

How do you conduct a pet screening?

First and foremost, you should always be upfront with potential homeowners about any pet policies you have (such as size or species limits) and any additional costs they would be liable for if they bring a pet with them. This will save both you and potential renters time when filing an application in the event that the pet is not one you accept or they refuse to pay the needed extra charge.

A later, more problematic issue including a notice to depart or an eviction may be avoided with a pet screening.

Pet Screening Application Questions

Making a pet screening application that gives a high-level summary of their pet is a smart place to start. To help you get started, consider these sample questions:

• Pet Name
• Type of Pet
• What is your pet’s weight?
• How old is your pet?
• How long have you owned this pet?
• Proof of up-to-date vaccinations?
• Has your pet ever bitten/attacked another person or animal?
• Is your pet house-trained?
• Does your pet understand basic commands?
• Does your pet have any behavioral issues? This may include bared teeth, growling, raised hackles, or excessive barking.
• Veterinarian contact information

Download the FREE pet screening application template:

What are HOA Service Animal Policies?

The ADA specifies that only a dog individually trained to perform tasks or aid a person with disabilities qualifies as a service or assistance animal. It considers no other animal, domestic or wild, even if trained, as a service animal. Service animals should assist individuals with disabilities in all their responsibilities.

Although the law primarily recognizes dogs as service animals, several states extend this classification to include other animals as well, provided they meet the necessary criteria.Be careful to review the laws and guidelines in your state regarding service animals. You should include the necessary guidelines in your request for a pet screening.

How to navigate service animal requests

In accordance with the Fair Housing Act, you may also request adequate documentation to demonstrate that the individual in question genuinely requires a service animal due to a disability. Importantly, it’s essential to acknowledge that not all disabilities are visibly apparent. As a result, your prospective homeowners might occasionally suffer from mental illnesses and, therefore, require a service dog or emotional support animals to assist them in social situations. Additionally, service animals can play a pivotal role in reminding them to take their prescriptions on schedule.

You can request a doctor’s note to confirm that they need a service animal in certain circumstances. What you may and cannot do in relation to service dogs is listed below:

You can refuse a service animal if:

• The pet is not legal according to your state’s law.
• The homeowner refuses to take responsibility for the service animal, refusing to resolve noise complaints or clean up after the animal.
• The pet is a threat to the other residents of the property.

HOA Meeting Minutes Template: What should it include?

Want to know how to take minutes for homeowners association meetings? You’ll learn what type of information you should include, and how to properly format the minutes with our easy-to-use editable template. 

Because it is the law, HOA boards need to take the minutes of every meeting. This way, there will be an accurate record of what was discussed in the meeting.

If you’ve never seen a meeting minutes template before, writing one can be difficult. Recording minutes the first time can often be daunting.

This article will teach you how to record HOA meeting minutes, covering everything from the order of items to record to detailed instructions on what you can omit. You will find a sample of the minutes document below to use as a template for your meetings after reading this article.

What are meeting minutes?

HOA meeting minutes are a record of everything that has happened between the members during the meeting.

During a meeting, minutes are recorded and detail the subjects discussed, the actions taken, the decision-makers, etc.

Understanding the importance of meeting minutes

Meeting minutes are not just a formality; they are a crucial aspect of meeting documentation that helps teams stay aligned, track progress, and hold members accountable for their commitments. They also serve as a legal document in many cases, providing a record of decisions and actions agreed upon during a meeting.

Who takes meeting minutes?

If an HOA doesn’t already have a designated note-taker, the first thing they should do is appoint someone as a note-taker. Furthermore, they should have a backup in case that person is unable to attend a meeting.

Often, the secretary will take down the minutes. However, it is common for boards to hire or elect a recording secretary in order to free up their general secretary for meeting participation. If the association works with a property manager, then they may be asked to take, prepare, and share meeting minutes.

The ability to write quality minutes for meetings can be learned through education and practice. It’s not a skill that everyone is born with, but most people can learn to do it effectively. Experts recommend that all board members have an understanding of how to record meetings. Even if they’re not responsible for this task, it’s beneficial to know the process.

Board members are encouraged to write their own notes when they attend open sessions so they can have the information immediately after the meeting. Depending on the time length of the meeting and the role of the note-taker, it can take a few days, or more for the note-taker to get the minutes up. 

What to include in an HOA meeting minutes template:

Here are some of the most important points to include in HOA meeting minutes:

• The name of the association
• The date and location of the meeting
• The time at which the meeting started and adjourned
• A roll call of those who are present and absent with their respective board positions
• Board of directors reports
• Unfinished Business
• New business and open discussions
• New meeting details
• Names of members who voted abstained or dissented from a motion
• A record of all financial transactions including bank account opening and closing, reserve expenditure, etc.
• Adjournment
• Signature of the Secretary

Your local or state laws may have other items and rules on how to take HOA board meeting minutes.

Detailed guide to taking meeting minutes

Documenting Discussions

Capture the essence of discussions without trying to transcribe every word. Focus on decisions made, action items, and any points of consensus or disagreement.

Recording Decisions and Actions

Clearly note any decisions made during the meeting, including who is responsible for what action item and the deadlines for these tasks.

Confidentiality and Sensitivity

Be mindful of the sensitivity of information discussed in meetings. Some details may need to be kept confidential or summarized without revealing sensitive information.

Approving Meeting Minutes

Before proceeding with the day’s business, the secretary must approve the minutes from the previous meeting.

What shouldn’t you record in the meeting minutes?

You should exclude certain elements from an HOA document, including:

#1 Off-topic or irrelevant discussions

It is not uncommon for board members to engage in a discussion amongst themselves.

New meeting note-takers often mistakenly believe they must record every discussion in the minutes, but this is not the case. You only need to record conversations relevant to an issue listed on the agenda.

#2 Personal Beliefs 

Similarly, the recording person or board members should not include personal and irrelevant views and opinions discussed in the meeting minutes.

#3 Disagreements

Please do not include personal opinions, arguments, or disputes that occur between members in the meeting minutes, similar to other exclusions.

HOA Meeting Minutes Template

Here is an example of an HOA meeting minutes template. To make this your own, you can download this template and edit it for your own board meetings. 

How long should the HOA maintain its meeting minutes?

An HOA board must maintain their meeting minutes register indefinitely as part of their official records. Check your local and state laws to determine how long your HOA must keep records of meeting minutes.

Want to see Smartwebs in action? Book a Demo. We’d love to show you how it works.

HOA Accounting Software vs Quickbooks

As we dive into the world of HOA management, it’s crucial to find efficient ways to streamline financial processes. QuickBooks is a popular accounting software that many HOAs use for its ease of use and comprehensive features. In this article, we’ll explore the benefits and shortfalls of using QuickBooks for Homeowners Association accounting.

Can you use Quickbooks for HOA Accounting?

The short answer is yes, QuickBooks can be used for HOA accounting. QuickBooks is a popular accounting software that offers a range of features to streamline financial processes, making it an ideal solution for HOA accounting.

Benefits of using QuickBooks for HOA Accounting

QuickBooks offers a range of features that can benefit HOAs, including:

1. Financial Management 

   HOAs can use QuickBooks to manage their finances effectively, including invoicing, bill payments, and budgeting. QuickBooks offers a user-friendly interface that allows HOAs to easily record transactions and generate financial reports.

2. Online payment processing 

   QuickBooks offers online payment processing, which is a convenient way for HOA members to pay their dues. This feature saves time and improves cash flow, making it easier for HOAs to manage their finances.

3. Customizable Reports  

   In addition, QuickBooks offers customizable reporting options that allow HOAs to generate financial reports tailored to their needs. HOAs can use these reports to track their financial performance, make informed decisions, and comply with reporting requirements.

4. Multi-User Access 

   QuickBooks offers multi-user access, which allows HOA board members and management to access financial data from anywhere. This feature ensures that everyone has access to the most up-to-date financial information and can collaborate effectively.

Why HOA software is better than Quickbooks

While QuickBooks is a popular choice, there are other HOA-specific accounting software options available that may provide more benefits without the limitations. Some of the key benefits of HOA accounting software are:

1. HOA-Specific Features

   HOA accounting software is designed specifically for HOAs, providing features that are tailored to their unique needs. These features include online payment processing, delinquency tracking, violation tracking, and budgeting tools, among others. This software can provide a more comprehensive solution for community managers than QuickBooks, which is a general accounting software.

2. Streamlined Communication

   HOA accounting software offers features that can streamline communication between community managers and HOA board members. These features can include alerts for overdue accounts, online message boards, and automated email notifications. By using this software, community managers can ensure that board members are kept informed about the HOA’s financial status and can collaborate more effectively.

3. Compliance and Audit Support

   HOA accounting software provides support for compliance and audit requirements. These software solutions can assist community managers in ensuring that they comply with relevant regulations and legal requirements. They also provide built-in audit trails and detailed reporting options that can make audits easier to manage and pass.

4. Reduced Workload

   HOA accounting software can reduce the workload for community managers. These solutions automate many of the financial processes that community managers handle manually, saving time and improving accuracy. By automating routine tasks like invoicing and payment processing, community managers can focus on higher-level tasks that can improve the community’s financial health.

5. Increased Efficiency

   HOA accounting software can increase efficiency by providing quick and easy access to financial information. This software can offer real-time reporting, allowing community managers to make informed decisions quickly. Community managers can access HOA accounting software from anywhere, making it easier to manage the finances of multiple communities from a single platform.

Smartwebs vs. Quickbooks

Quickbooks is a one size fits all accounting software designed to work for any individual in any industry. Although QuickBooks is widely used, it has a significant drawback in that it was not created specifically for HOAs. Community association accounting software, on the other hand, incorporates industry specifics that make HOA bookkeeping easier.

Smartwebs HOA accounting software was developed and designed exclusively for community associations, using the most up-to-date cloud technology and security. Powerful workflows, easy automation, and improved reporting will keep your HOA running smoothly.

1. Customer-based accounting vs unit-based accounting. Customers, individuals, and businesses use Quickbooks to pay for or send invoices for products or services provided by others. HOA accounting software was designed to make community association management simpler. With built-in tags and custom fields, you can segment units and owners. 
2. QuickBooks fails to realize what makes HOAs unique – units. In QuickBooks, you must create a new customer every time an occupant moves into a unit. Over time, each purchase will generate one new account with the same address, making it difficult to compile documentation by unit, only by the customer.
3. Community Association Management software helps you organize records. Smartwebs keeps records on both units and individuals, making it easier than ever to establish a documented history of owners, maintenance, architecturals, payment activity, and more at the touch of a button.

Conclusion

HOA accounting software offers several benefits over QuickBooks. HOA accounting software tailors to the unique needs of HOAs, streamlines communication and collaboration, offers compliance and audit support, reduces workload, and increases efficiency.While QuickBooks is a popular choice, it may not provide the same level of features and support that HOA accounting software can offer. By choosing the right HOA accounting software, community managers can streamline financial processes and ensure the financial health of the communities they manage.