Accounting within the Community Management Industry includes tracking and recording financial activity. Staying on top of the monthly financial reports is a critical aspect of maintaining a healthy community or association. There are several aspects of accounting that have to be taken care of by management each month. The processes these accounting teams possess can have a tremendous effect when looking at the community’s success as a whole.
What are the financial reports an HOA must generate each month?
Depending on the specific needs of the individual association, the reports required will change. In general, the most popular monthly reports are;
- Balance Sheet
- General Ledger
- Statement of Income & Expenses
- Accounts Payable Report
- Account Delinquency Report
- Cash Disbursements Ledger
Maintaining accurate records and financial reports is imperative when keeping your communities on track. Without these tools, the community could very well fall apart or run into financial struggles.
Since communities acknowledge the importance of accounting, every management company must have a piece of accounting software. Your financials are only as reliable as the practices and procedures that define them. Therefore, having a reliable accounting platform is incredibly important. These days, many accounting platforms help management teams generate their monthly reports. These essential reports are something to keep in mind when researching or looking for software providers.
Accounting can seem like a taxing and intricate process, mostly invisible to homeowners, but it’s a fundamental pillar of success within communities across the United States.