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HOA Accounting: When to Hire Help

calculator and pencil on paper
HOAs have many financial needs and responsibilities, from utility payments to annual reports. Thankfully, HOA managers can help with your HOA accounting needs.

Is your HOA wondering whether it’s time to hire an accounting service to help your bookkeeping? There are more than 669,000 licensed CPAs in the United States alone. Although there are thousands of CPAs, many accountants lack specialization in handling HOA accounting matters. 

The accountant your HOA hires should help ease the burden of managing your HOA, while also keeping your books straight. Read on to learn signs that it’s time to hire HOA accounting help for your community!

Member Time Constraints

HOA accounting services help your association members free up their schedules and avoid spending time crunching numbers. Accounting is a very specialized field. This means it can take many hours to do things right depending on the age and size of your community. 

The accounting procedures and tax laws in the United States tend to change a bit each year. This can make it very hard to stay on top of law as it evolves and can impact the monies your HOA controls.

Time is money, and in many HOA communities, members may be working professionals or full-time parents. Others simply may not be able to dedicate the time needed to perform all the accounting that is needed. 

HOA accountants will do things right the first time, which will save your members time and money!

Community Vote

Your HOA management may decide to put accounting for HOA services up for a vote. Depending on the size and rules of the community, your board of directors may have the authority to put this issue to a vote themselves.

Other communities may require a majority vote from HOA members in good standing with the association. Putting the matter up for a vote usually follows a discussion about the pros and cons of hiring a company for HOA accounting services. 

The best HOA management Seattle companies will have an accounting service available for your community. This allows your association to enjoy the benefits of their accounting work without having to hire a third party.

There is peace of mind in having a relationship with a company for both property management and accounting services. It will also help your association simplify its day-to-day operations.

Adapt to Changing Needs

In today’s fast-paced world, there are evolving needs for people at work and home. The same goes for HOA communities in south Snohomish and North King County in Washington state. 

Where your HOA was five years ago and where it will be five years from now can be very different. This may change the way you operate and the money you need to complete projects. How are the demographics of HOA residents changing? Is there an increasing number of families moving into the community? How will these things alter the needs of your neighborhood?

The answers to questions like these may help guide your membership’s decision to have HOA accounting procedures done by the pros!

Budgeting for Large Projects

Budgeting for large projects takes a lot of planning, time, and money! You need all three to make your association’s dreams a reality. With accounting for HOA matters, you can get a realistic sense of your HOA’s financial picture today and into the future. 

HOA accountants will prepare financial accounting documents like a balance sheet and statement of cash flows. These will show your members the financial health of your HOA now. It will also reflect the areas where your membership dues are being spent.

Start a Useful Discussion Now

Studying these statements allows your HOA to narrow down how it can improve to reach its goals. Some of the biggest projects include roofing, painting, and landscaping.

Where does each of these projects stand in their useful life? When does the HOA expect they will need to spend money to replace them? How much will each project cost?

Hire a professional to perform accounting services for the HOA. It can help your members have better talks to make progress in reaching decisions. This will also help your members prepare an agenda focused on the most meaningful HOA matters. 

Disputes Over Assessments and Fines

Disputes about assessments and fines are one way that your HOA can divide its membership. These disagreements may breed tension within a community and cause neighbors to take sides against each other.

One of the best HOA accounting services is an audit of your community’s financial records. This can be as short and as long as the HOA believes it should be. During this audit, an accountant will be looking for errors made in bookkeeping for that period.

Finding these issues can help resolve discrepancies in records. This will help clear up outstanding issues about fines and other assessments that are causing problems in your community.  

The relationship between HOA members can improve after an independent audit. That’s because it will provide meaningful insight into disputed questions. 

The Decision to Hire HOA Accounting Services

The decision to hire HOA accounting services is an important one for your community. By taking time to learn about the importance of their work, you will have a better understanding of why it may make sense for the association.

At VerraTerra, we are your source for local HOA management in the Greater Seattle area. We offer a full line of HOA property management services, which include bookkeeping services for your property.

Contact us today to learn more about our services and how we can help you make the most of life in your community!