Money is often a source of preoccupation in community associations. Some communities decide to implement HOA finance software to help them manage their assets and to increase transparency. While this solution has many advantages, choosing the right one may be harder than you think. With so many software options available, making the right decision can be overwhelming.
If you don’t know where to start, this article will help you. Read on to discover our 5 step process to choose a financial solution that fits your HOA’s needs.
What’s HOA Finance Software?
HOA Finance Software is an online platform that allows you to manage your income and expenses. It centralizes several features that help you perform day-to-day HOA financial tasks. Here are a few examples:
- Send and track invoices
- Notify residents about payments
- Generate balance sheets and financial statements
- Pay HOA dues online
- Store financial documents online
1. Board members should assess their community’s needs
When it comes to finances, HOAs may face different challenges. Some may have difficulty keeping track of their reserves while others only care about tracking dues. It is essential to have a board meeting to discuss this topic and align with your colleagues. Here are some ideas of what you need to discuss:
- What are your current financial issues
- Why do these issues matter
- Will software solve these issues
- How much budget do you have to invest in an online tool
- What functionalities you would like the HOA financial software to have
2. Ask what residents think about implementing HOA Finance Software
Once the HOA board is aligned, you can start discussing the topic with residents. It’s important to involve homeowners from the beginning of the project. Otherwise, they won’t understand why the board suddenly wants to implement a system that will generate more costs. Including residents at each step will help you have a better perspective and make the right choice. For example, senior residents share concerns about paying dues online because they aren’t comfortable with computers. Once you are aware of that, you can ask companies if their software is senior-friendly and if they provide customer support. That can become one of your key criteria when picking the software.
Gathering feedback from residents is simple. You can do so by conducting an HOA survey that homeowners will fill in. Or, you can host an HOA meeting to discuss this topic.
3. Start looking for solution providers
Now that all homeowners are in the loop, you can start looking for companies that provide online financial solutions for HOAs. This step is the simplest one. You just need to type “HOA finance software” or “HOA Accounting Software” in the search bar and you will have many options. At this point, you can check the companies’ websites and determine which ones could be a good fit. Then, you can start drafting a list. Ideally, you should have a minimum of 5 solution providers on your list so you have enough options to compare.
4. Compare the price, reviews, and features of different HOA finance software companies
Once you are done with your list, you can start comparing all of your options. This is not the simplest task. There are so many things you can compare that people sometimes get lost in the process. This is why we recommend you to compare four main aspects of each software company:
- Price
Some finance software are very expensive, others are completely free. So comparing the price is very important to choose a solution that fits into your HOA budget.
- Features
Each software has different features and functionalities. So here, you need to map out which features are available and which are important for you.
- Reviews
The best way to know if a product is good before investing a penny is to check what users say about it. Nowadays, software comparison sites such as Capterra or Sourceforge allow you to check client reviews and compare software easily.
- Customer support
Ongoing customer support is often what makes the whole difference between a good solution and an excellent one. Adapting to new technologies is not always easy. So having a team of experts dedicated to helping customers transition to digital tools is very helpful. Also, knowing that the HOA board can reach out and have their questions answered quickly is reassuring.
5. Select the two best options and request a free trial or free demo
Now that you have compared all of your options, you need to pick two that best fit your criteria. You may not know that, but most software companies offer free demos and free trials. A free trial allows you to test the platform on your own for free to see if you like it. A free demo is someone from the company showing you how the platforms works and the benefits.
We highly recommend a free demo instead of free trials. Free demos are more personal, you can really get a sense of the company. It is also the opportunity to ask as many questions as you would like.
After doing a demo or trial with both solutions you will be able to make an informed decision. Make sure to involve other board members and residents in your decision-making process. For example, the whole board can attend the free demo presentation. Or you can ask for it to be recorded so you can show it to other residents.
HOA Finance Software is better paired with an All-in-One HOA Management System
We rarely recommend isolated solutions. If your community has financial issues, you probably also have communication issues or other management problems. The good news is that you can tackle all of these challenges with all-in-one HOA software. This solution allows you to manage your finances, communicate with residents, and manage all aspects of your HOA in one single location.
If you are not ready for a complete software solution yet, that’s fine. Some HOA finance software like Quickbooks integrates with all-in-one HOA software. So you can start by implementing a financial solution and then in the future see if it’s worth integrating it with another platform.
Click on the image below to learn more about Quickbooks, one of the most powerful finance software in the market that fully integrates with many HOA software.
