Homeowner Association is a kind of community association which you will have to join when you buy the house or condominium in the planned housing society. This type of association takes care of the need of the housing society and the amenities available in the common areas. To take care of those needs, some sort of financial expenditures are done. The expenses are from the funds or fees collected by the HOA members. Since, this is the collective expenses so there is a need to maintain the financial report in order to maintain the transparency and accountability of the expenditures done to maintain the HOA and housing society.
Creating the financial statements for HOA
People are not able to make the list of their own expenses hence it is much more challenging for them to prepare the HOA financial statements. Hence, to prepare such kind of financial statements for the housing society benefits, there is a need to get the services of professional HOA accounting experts. There are many companies like ClarkSimsonMiller which offer wide range of HOA related services to the home buyers.
Financial Management services for HOA
Some of the most common financial management services which are handled by the accounting firms for HOA are:
- Record maintenance
- Payment of all bills
- Complete financial reporting
- Assistance during audit
- Look after delinquent accounts and work with attorneys
- Periodic communications to the clients
- Revenues and Expenses recording on the cash basis and Accrual basis
There are many more services related to HOA which are handled by the HOA accounting firms and outsourcing firm.
If you are a member of a HOA or live in the development society then you may ask yourself what type of insurance over you need. Half of the HOA are able to maintain their insurance policies and only few of them get the extended cover. The common types of insurances which HOA should have are:
- Property insurance
- Liability insurance
- Fidelity insurance
- Directors and officers liability insurance
The main purpose of these types of insurances is to provide coverage to the members of HOA. On becoming a member of HOA, it is your duty to protect your association with your efforts. Getting the HOA insurance is a way by which the interest of the association can be protected. HOA insurances help in meeting the needs of the association so that it can work properly.