The Most Critical Reports an Association Management Company Can Utilize through Association Software
Homeowners Association (HOA) software offers many useful features. As an HOA manager, the right association software can dramatically improve your business. Association software gives you the tools you need to manage all your clients’ resources. This includes the HOA’s finances and other critical information needed for regular reports.
Reporting to the HOA board is one of your key responsibilities as an association manager. Reports assure the client that you’re performing your duties well and doing everything you can to help their HOA thrive. Additionally, the information in an HOA report can help you and your clients identify the association’s strengths and weaknesses. You can use HOA reports to help your clients make changes to improve their association.
With association software like CINC Systems, there are many types of critical reports you can automatically generate for your association management company. You can use these reports internally to help delegate tasks to co-managers and assistants. You can also present them to your clients to streamline communication.
If you’re wondering which HOA reports to utilize through association software, we recommend the following six items. These reports are common yet critical because they present vital information about the HOA. With each of these six critical HOA reports, you can ensure that you always do high-quality work as an HOA manager.
1. Balance Sheet
An HOA balance sheet is one of the most critical financial reports you’ll work with as an association manager. A balance sheet gives you a clear snapshot of your client’s financial situation. It includes information about the HOA’s assets, liabilities, and reserve funds. In other words, a balance sheet tells you how much money is available to the HOA at any given point in time.
Using association accounting software like CINC Systems, you can easily set up balance sheets for each of your clients. These balance sheets can display valuable information, such as available cash in the HOA’s checking account as well as accounts payable, or outstanding invoices that are owed to vendors. A balance sheet can help you advise your clients about their finances.
2. Bank Reconciliation Report
Another very important type of report is called a bank reconciliation report. This report is similar to a balance sheet. However, unlike a balance sheet, a bank reconciliation report shows individual financial transactions. Where a balance sheet is like the financial “big picture” for your client’s HOA, the bank reconciliation report is the day-to-day details. It allows you to track deposits and expenditures as they occur in real-time.
Using CINC Systems, you can perform bank reconciliation from one convenient web dashboard. CINC Systems allows you to connect each of your clients’ financial accounts in one place. This means you won’t need to login to multiple bank websites to monitor your clients’ finances. Bank reconciliation is a valuable tool for catching fraud, excess spending, and bank errors.
3. Comparative Income and Expenses Report
Next, use your association management software to create comparative income and expenses reports for your clients. As the name implies, this report compares the HOA’s income and expenses. It’s one of the best tools to help you advise your clients about the HOA’s budget.
Is spending on target for the current financial quarter? Is the HOA going over-budget, or under budget, in specific categories? What expenses ended up being higher than anticipated? With a comparative income and expense report, you’ll see how the HOA’s spending actually compares with the budgets that have been set by the association board.
4. Aged Delinquency Report
An aged delinquency report is important to the success of the HOA’s community. This critical report tells you which HOA members are behind on their assessments and fees. It also breaks the delinquency down by date and category. As the HOA manager, you’ll give this report to your client’s board in advance of each board meeting.
Then, the board reviews this report and decides which actions need to be taken. You may be called upon to assist with this by issuing a written warning or engaging a collection service for the delinquent board member. An aged delinquency report ensures that you can help your clients collect fees on time.
5. Capital Reserve Report
A capital reserve report is another type of financial report used by HOAs and HOA managers. These reports are usually shorter and less complicated than other types of financial reports. Essentially, they display the current balance of the HOA’s reserve fund. Although relatively simple, a capital reserve report is vital to the success of any HOA.
The association’s reserve fund is set aside for big projects as well as emergency repairs. For example, if there’s a fire or weather damage to a community building, the repairs for this unexpected cost will come from the reserve fund. This means it’s important for you and your clients to know exactly how much money is available at any given time.
6. Project Status Reports
Finally, your association management software can help you work more efficiently by creating project status reports. These reports provide information about the HOA’s current projects, from minor repairs and upgrades to big endeavors such as the installation of a new pool or fitness center.
A project status report can take many forms and include a variety of information, including expenses and timelines for completion. These reports will help you manage your clients’ HOA projects and allow you to assist your client’s board with future planning.
Generating Critical Reports is Easier Than Ever with CINC Systems
Critical reports can make a huge difference to the success of an HOA. Each of these reports provide valuable information to you and your clients, which can empower you to make better decisions for the future. It’s important to use reports in your day-to-day management and in planning for the big picture for your clients.
Best of all, critical reports are easy to create. With association management software like CINC Systems, you can generate these reports automatically and even send them electronically. To see how CINC Systems can help your HOA management business with reporting, click here to request a free demo.
Related Frequently Asked Questions
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