HOA (Homeowners association) communities are on the rise across the nation. Around 58% of homeowners live in HOA communities and across the country, around 8,000 new HOAs are formed each year. The prominence of HOAs and the diverse characteristics of each community pose an HOA management challenge to homeowners. Many HOAs turn to third-party companies to handle the heavy lifting of the HOA’s daily duties to the tune of tens of thousands of dollars each year.  In 2021, an estimated 35% of HOAs were self-managed. However, tools like HOA accounting software are making these duties more approachable for volunteers—regardless of their background or experience.  NO matter how you go about it, there are four things your HOA board needs to run smoothly, satisfy homeowners, and stay profitable.  Pillar 1: Streamline Dues Collection Homeowner dues are the lifeblood of your HOA, and collecting them is the most urgent function of HOA management. Dues provide the funding needed to maintain amenities, make repairs, and budget for improvements.  Usually, the task of collecting dues falls to the HOA’s treasurer, and it isn’t as easy as it sounds.  Some homeowners prefer to pay by check, while others pay by cash or card. Collecting and processing several different types of payments causes more work for the treasurer. Not to mention, depositing checks requires a trip to the bank, and they take a few days to process.  While many homeowners may faithfully mail their dues in by check, unavoidably some will forget or find themselves out of town with no way to pay. In this case, the treasurer must connect with them to arrange the payment. If the treasurer has a job, or if the homeowner works odd hours, this can be difficult.   As a result, dues payments trickle in inconsistently over the course of the month — until it’s time to do it all over again. You can see why many HOAs leave this work to third-party companies.  But the simplest solution to this challenge is to offer digital payments to homeowners. That way, they can pay with a credit or debit card, or through a bank draft. More importantly, they can pay anytime, from anywhere, without interfacing with the treasurer at all.  Unlike checks, digital payments hit the HOA’s bank account instantly. Some HOA accounting software platforms like PayHOA allow homeowners to enable autopay, so they don’t have to remember to pay their dues each month. This simplifies the dues process for both homeowners and the HOA treasurer, and gives the HOA’s cash flow much more stability.  Pillar 2: Organize Your Bookkeeping Keeping your accounting and records organized can be extremely difficult. However, with the right tools and processes, even HOA treasurers with no accounting or financial background can keep the HOA on track.  Many HOAs keep track of their accounting with basic tools like spreadsheets or even paper ledgers. These methods create several liabilities.  Though these tools are digital, they still require a ton of manual work and data entry. Not only does this make the job of treasurer more difficult, it’s more prone to human error.  The treasurer must create their own system for keeping information organized. This creates too much reliance on one individual. If they decide to leave the HOA, it can be tough to make heads or tails of their records.  Good bookkeeping practices don’t always provide the clarity needed for long-term planning or informed decision-making. It can still be difficult to gain a birds-eye-view of the HOA’s financial health.  General accounting softwares like QuickBooks aren’t built to handle an HOA’s needs. To name just a few issues, they don’t handle mass, recurring invoices well, and they don’t distinguish between property and owner. This is a huge area of concern in working with a third-party management company. These companies handle the HOA’s bookkeeping, but don’t always keep the HOA board informed about the finances. If the HOA decides to end its relationship with a management company, it can be difficult to regain control of the books and records.  For HOAs who choose to self-manage, an HOA-specific accounting software can answer almost all of these concerns.  These platforms allow you to create separate profiles for properties, owners, and vendors. They keep all your transactions in one place and automatically sync with the HOA’s bank account. Plus, these HOA platforms automatically generate reports that indicate your HOA’s financial health.  To prioritize your HOA’s goals, the HOA must know where it stands. The end goal of organized bookkeeping is to provide the clarity your HOA needs to move forward — whether that means  building reserves, conducting an audit, planning a new amenity, paying taxes, or something else. Pillar 3: Be Transparent With Homeowners  Communication is a key piece of HOA management. Homeowners pay dues to maintain their HOA community, so they deserve to know how their money is being spent, what’s going on in their community, and how to participate in the HOA board’s decision making. Accounting Remember, homeowners chose to live in an HOA community as an investment. When homeowners know their investment is being taken care of, it makes for a good relationship with the HOA board and an overall happier community.  From an accounting perspective, most homeowners want to know just four basic things: How much cash does the HOA have on hand? How much money does the HOA have in reserves? What is the HOA spending money on? What should the HOA be spending money on? The ability to answer these questions comes from organized bookkeeping, but the HOA board must also take an active approach in communicating these points to homeowners. Some state HOA laws require a level of openness, but the legal standard should be the bare minimum for transparency around finances.  Board meetings Running an HOA is a team effort, and when you include homeowners, that work will go much smoother and will be well-received.  Announce meetings a few weeks in advance. Be clear about the rules for how meetings will be conducted and