Like any small business, a homeowner association (HOA) management company needs to save money. When you keep your operating costs low, you increase your profit margins and free up your assets to invest in new resources. Saving money is key to helping your business grow and succeed. By using association accounting software, your HOA management business can cut costs and increase efficiency.
Many HOA managers use basic spreadsheets, ledgers, and general accounting software for their finances, which aren’t designed to meet the specific needs of an association. If this describes your business, you may feel that upgrading to association accounting software isn’t necessary. However, making the switch to a platform like CINC Systems is well worth the investment.
By using association accounting software, your HOA management company will save money and increase your business. It’s one of the best investments you can make for your HOA management business. With features designed specifically for association management, HOA accounting software makes your job much easier. It increases your overall efficiency and frees up your valuable time, allowing you to take on more clients.
To learn more about how an HOA management company can save money by using association accounting software, check out the great cost-cutting features below.
Go Paperless and Mobile
First, association accounting software allows your HOA management company to go paperless. This helps your business save money by reducing the cost of office supplies like paper, printer ink, filing cabinets, and storage. Additionally, going paperless means you’re doing all your accounting in your association management software, instead of crunching numbers by hand. This is faster and more accurate than paper accounting.
Additionally, if you choose association accounting software like CINC Systems, your clients’ financial data is stored in the cloud. This means the information is spread out across multiple servers that you can access from any device with an internet connection. In other words, you don’t need to be stuck in your office all day to do your accounting. With cloud capabilities and mobile apps, association accounting software lets you work for your clients at any time, at any place. Going mobile makes it easier than ever to multitask, thereby saving you lots of time and money.
As a bonus, going paperless is also better for the environment. Although this might not save you money directly, you can highlight your earth-friendly initiatives on your website and in your marketing materials. This can help attract new clients.
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Manage Accounts Payable and Receivable
Another way to save money with HOA accounting software is to manage accounts payable and accounts receivable. Accounts payable refers to any money that your client’s HOA owes to vendors, such as outstanding invoices or bills. Accounts receivable is the opposite, referring to any money that is owed to the HOA, such as resident fees.
Without association accounting software, you need to manage these accounts manually. This means mailing checks to cover invoices, visiting the bank to make deposits, and updating your client’s ledger with each transaction so their accounts reflect the most current balance. Each of these tasks can be very time-consuming. They’re also prone to human error, which means you may have to redo certain aspects of the accounts payable and receivable if someone makes a mistake.
By using association accounting software, this process becomes almost fully automated. You can pay vendors electronically on behalf of the association, collect invoice payments via email, and process these payments immediately and online. Best of all, association management accounting software also ensures that your client’s financial accounts are always updated with the most recent balance.
Automate Bill Payments
You can use association accounting software to automate bills for your clients. As the HOA manager, it is your responsibility to make payments for the association’s recurring costs. This can include general repairs as well as services like landscaping, waste disposal, utilities, and private security.
Rather than paying bills individually by check, you can use association accounting software to set up automatic payments. Once set, you can forget about paying the bills and focus on other tasks. Plus, automatic bill payment also ensures that you’ll never miss a deadline. This protects your clients from late fees and interest, which will make them happier with your performance as an HOA manager.
Collect Resident Fees Online
For an association manager, one of the biggest responsibilities is collecting HOA fees from the association’s members. Resident fees are vital to the success of the association, covering monthly costs as well as adding to the HOA’s reserve fund. Without association accounting software, fees must be collected by mail or submitted to an office inbox.
In this process, the HOA manager needs to deposit the checks, received as fees at the bank, wait for the deposit to clear, and check the HOA’s resident database to ensure that everyone has paid the full amount on time. This is a very time-consuming process for what should be a simple task.
Association accounting software makes fee collection an easy task. With association accounting software, HOA managers can set up an online web portal to process payments electronically. Residents are able to pay via credit card or eCheck and the money is automatically deposited into the client’s account. HOA accounting software also alerts you when residents are delinquent on their payments.
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Monitor Bank Accounts in Real-Time
HOA managers can also use association accounting software to save money by taking advantage of a feature called automatic bank reconciliation. This means that you can link all of your client’s financial accounts to your software’s dashboard. The accounts are updated in real-time, showing transactions as they occur and reflect an accurate, current balance.
With this feature, you can monitor the HOA’s finances without logging into multiple banking websites. It also eliminates the need to balance the books by hand. Automatic bank reconciliation also helps you to detect suspicious activity and potential fraud.
Prepare Financial Reports
Finally, association accounting software can automatically prepare financial reports for your clients’ board members. Instead of spending all day creating spreadsheets, charts, and graphs, you can select the information you want to share with your clients and automatically generate a report from within the software. Then, you can email this report directly to the board members.
Using association accounting software to generate financial reports means less work for you, and lower costs for your clients because they won’t need to hire an external CPA. It also makes it much easier to calculate taxes and conduct internal financial audits.
To learn more about how CINC Systems association accounting software can help your management company save money, request a free demo or call (855) 943-8246.