HOA Accounting
& Bookkeeping
Associated Professional Services offers the following HOA accounting and bookkeeping services in San Diego. All of these services are flexible and can be customized to accommodate the needs of each association.
Our HOA Accounting Services
Assessments
Billing statements, payment coupons, credit cards, and ACH (automatic withdrawal) are methods that can be used to collect assessments.
Late Notices
Associated Professional Services’ San Diego team will mail a late notice to any delinquent homeowners shortly after the homeowner association’s late period. A late processing fee will be assessed to cover the cost of bookkeeping delays, etc.
Collections
APS will take action on delinquent accounts according to the homeowner association’s collection policy. A pre-lien letter, which notifies delinquent homeowners before the lien is filed, will automatically be sent out first.
Bill Payments
We can pay bills from the Homeowner Association’s checking or reserve account.
Financial Statements
What is an HOA Account?
- Contracted services
- Landscaping
- Maintenance of common areas
- Security
- Property management
- Utility expenses
- Plumbing
- Heating & cooling of common areas
- Insurance and taxes
- Office expenses
- Postage
- Office supplies
- Accounting and legal fees
How long should the HOA keep important accounting documents and records?
The answer depends on state laws, what the document is, and how much time has passed. Here are some good rules of thumb to follow:
- Tax Records
Audits can occur up to three years after the HOA has filed its taxes, so it’s a good idea to keep records for four years and then destroy them. You should, however, keep any paperwork granting tax exemptions or issuing a tax ID number.
- Financial Records
Audits can occur up to three years after the HOA has filed its taxes, so it’s a good idea to keep records for four years and then destroy them. You should, however, keep any paperwork granting tax exemptions or issuing a tax ID number.
- Legal Papers
If there has been any legal action taken by or against the HOA, it’s a good idea to retain all files related to these claims. Check with your attorney about how long to keep these records.
- Vendor Agreements
A good rule of thumb is to keep these documents until the next agreement is filed. A new contract will supersede the old one. The same often applies for insurance policies as well – but hang on to documents if there are any unresolved issues.
How much should an HOA have in reserves?
Ideally, the HOA wants to have a 100% funded reserve – meaning that it has enough money to cover all anticipated costs. However, most reserve experts suggest that the reserves be funded at 70% or higher of the property’s calculated deterioration.
Less than that and the HOA runs the risk of having to implement special assessments or raise association fees to cover costs, both of which can be a burden for the homeowners who need to come up with that money on short notice.
If funding is coming up short, look for ways to readjust the budget and allocate a higher percentage of association fees to the reserve fund. Typically between 25% and 40% of fees should be put toward the reserve fund.
APS maximizes efficiency and reduces overall HOA management costs.
To find out if our 100% customizable services are right for you, request a proposal or contact us to schedule a consultation.
