Category: HOA

  • Why Accrual Accounting Is the Best HOA Accounting Method for your HOA

    Why Accrual Accounting Is the Best HOA Accounting Method for your HOA

    HOA accounting is among the most complex tasks in HOA management. In any case, it involves tracking, recording, and reporting the financial activities of the community. Sound financial management is critical to ensuring the fiscal stability of the association. While HOA accounting can be daunting, understanding the basics of the different HOA accounting methods can…

  • Understanding HOA Tax Returns

    Understanding HOA Tax Returns

    Many people assume that since homeowners associations (HOAs) are not-for-profit entities, they have no obligation to pay taxes. Nothing could be further from the truth. While HOAs are nonprofit organizations, the IRS requires them to pay taxes and file tax returns. Here is everything you need to know about HOA tax returns. What Is an…

  • Nonprofit Accounting 101: How Many Steps Are in the Accounting Cycle?

    Nonprofit Accounting 101: How Many Steps Are in the Accounting Cycle?

    Whether running a nonprofit or for-profit organization, understanding the accounting cycle is critical for any company. This holistic process comprises a sequence of steps that identify, track, analyze, and record the financial activities of your nonprofit. The goal of an accounting cycle is to protect your company’s assets and financial health. It also makes financial…

  • How to Analyze HOA Financial Statements

    How to Analyze HOA Financial Statements

    Homeowners association boards comprise elected volunteers. Board members have various roles in the running of the community. However, some HOA board members might not have adequate expertise or experience to interpret or analyze complex HOA financial statements. Understanding the basics can help an HOA keep track of the association’s fiscal activities and ensure accountability. Whether…

  • What Are HOA Reserve Funds?

    What Are HOA Reserve Funds?

    Homeowners associations (HOAs) usually collect monthly or annual fees from members to help run the community. The collected funds go toward maintaining common areas and upgrading community facilities. Aside from dues, most HOAs have reserve funds. While establishing a reserve fund is not mandatory, doing so can go a long way to help the community…

  • How Can Homeowners Request HOA Financial Reports From Their HOA?

    How Can Homeowners Request HOA Financial Reports From Their HOA?

    Living in an HOA community can be a fulfilling experience. Residents get to enjoy regular maintenance of common areas, enhanced safety and security, and an increased level of community engagement. HOAs also ensure proper enforcement of local laws and ordinances. However, one question remains. Can homeowners request HOA financial reports? Let’s find out. Can Homeowners…