Most St. Louis HOA boards are volunteer-based and pressed for time; yet detail-oriented oversight is still a requirement of any community association. One of the best things you can do to improve the ongoing performance of your HOA is to outsource the accounting services.
Finding a qualified and experienced firm that understands Community Association budgets and financials will provide you with a number of benefits. We’re highlighting those in today’s blog.
Outsourcing Reduces Liability
Your association needs to be trusted and secured. When you outsource your financial accounting, you reduce the Association’s risk of fraud or theft. There’s another set of professional eyes monitoring the way every dollar is spent. You won’t have to worry about implementing complex checks and balances within your own association or your board. With a professional Association accounting firm, everything they do will be transparent and well-documented. You’ll know immediately if something isn’t right with your own books and financial statements. There’s a standard of accountability built into the services you receive.
Outsourcing Frees up the Board’s Time
Your association Board is expected to do a lot for your community. There’s the enforcement of rules and regulations, the review of contracts and agreements, and the collection of association dues. This is all done while communicating with community residents, managing meetings and minutes, and overseeing the events and amenities within the community.
Accounting and budgeting takes up a lot of time and requires a lot of attention. Reconciling ledgers, reviewing income and expense statements, and generating the right reports at tax time is all intensive and time-consuming work. A professional Association accounting team can take that off your Board’s plate and provide more time for other activities. It’s a cost-effective solution when you consider the value of your own time and your Board’s time.
Outsourcing Allows you to Access Expertise and Resources
Professional Accounting services will have a depth of experience that’s hard to find on the Board itself. If you can find an agency or a management company with experience managing HOA budgets and financials, you’ll really be able to benefit from these services. You won’t have to worry about making costly errors or learning general accounting principles.
Outsourcing Improves Compliance
Professional financial oversight puts people at ease. Whether you’re dealing with an audit or you have lenders or other partners poking around in the activities of your association, having a third-party Association accounting firm managing your financials will give you more credibility and ensure you’re compliant with all state, local, federal, and regulatory laws.
Provides an Incentive for New Board Recruitment
One of the reasons more people don’t volunteer for association boards is that they fear the time and responsibility that’s involved. It’s a huge commitment. But, if you’re able to point out that the accounting and financial oversight is handled by a professional third party organization, you’ll have an easier time getting talented people to donate their time and expertise.
Access to Financial Software and Technology
Having the right financial software in place can automate your financial reports, daily accounting, budgeting, and forecasting. It can make running reports, analyzing data, and generating statements a lot more efficient. When you outsource your accounting services, you don’t have to invest in any new software or update your technology. Your accounting team will have everything in place for you.
These are just a few reasons that you can benefit from a professional accounting service. If you’d like to discuss more ways to make managing your community association easier, contact us at Community Property Management. We’d be happy to tell you more.