What is HOA Accounting Software?
What is HOA accounting?
HOA accounting is the bookkeeping, record-keeping, and financial reporting that takes place in homeowners associations (HOAs). HOAs are communities with a governing authority that enforces rules, collects dues, and maintains common areas for residents. This entity is called a Board and can be managed either by volunteers or by a paid HOA management company. If the Board members are unpaid volunteers, they are responsible for performing HOA accounting. If the community uses an HOA management company, then this company is responsible for most of the association’s accounting tasks.
Is it different from regular accounting?
Many of the same financial accounting principles apply to both HOA accounting and traditional accounting, but there are major differences. You can use virtually any software that complies with Generally Accepted Accounting Principles (GAAP) to do your HOA’s books, but you’re much better off using software that was specifically designed for HOAs.
HOAs have many financial transactions that are different from regular businesses or individuals. They also have more transactions than most other types of entities and a large number of recurring monthly transactions such as mortgage payments and common area fees. For these reasons, it’s important to use an HOA-specific application if you have this type of entity.
What is HOA accounting software?
HOA accounting software is a comprehensive suite of tools to help you manage the financial accounting needs of your HOA. It’s important to choose the right software that can handle all of your needs, whether you’re just starting out or are an established HOA with many members. There are several key features and benefits to consider when evaluating HOA accounting software.
There is special accounting software for HOAs.
While most accounting software will work for an HOA, there are some products that are specially designed to function in an HOA setting. These products can make managing the finances of your association a much easier process and help you save time by streamlining tasks.
HOA accounting software tends to include basic accounting features, such as general ledger, accounts payable/receivable, invoicing and payment processing, reporting capabilities, and budgeting tools. In addition to these basic features, HOA accounting software can also give members access to view their own financial records through a secure portal.
These special programs can also simplify the process of collecting dues from members by automatically sending out collection notices when payments are late or missing. Some even offer online payment options for community members to pay their dues quickly and easily by credit card or e-check.
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Wondering where you can get software like this? You need SmartBooks! We built our accounting software specifically for HOAs and their distinct needs. Our software will help you manage your books with ease and also easily integrate with our management software to create one single platform to manage your communities. If you’re looking for superior HOA accounting software, schedule a demo with our team today and see the power of SmartBooks.