An HOA treasurer plays a crucial role in the well-being of an association. The main responsibility of this position is to ensure the HOA’s finances are healthy. For that, the treasurer needs to meticulously oversee all financial procedures. 

Far too often, board members are not aware of best practices that could make their role easier. That is the reason why some associations end up running into financial problems. 

If you are in this situation or would like to avoid being in this situation, here are 5 simple ways to handle financial operations smoothly and efficiently.

What is the role of an HOA treasurer?

As briefly mentioned above, the HOA treasurer manages the finances of a homeowners association. 

Their tasks and responsibilities usually include:

• Financial record-keeping 
• Preparation of the HOA annual budget
• Intermediary between the CPA or community association manager
• Facilitate reserve studies and audits regularly
• Monitor payments, dues, assessments, and delinquencies 
• Oversee the HOA’s insurances and taxes 

How can I simplify my role as an HOA treasurer?

1. Store/keep financial records online

As the board of directors treasurer, you are in charge of handling and storing financial documents such as invoices, receipts, or statements. 

These documents need to be well organized and easily accessible. Otherwise, it will be hard for you to provide timely and transparent financial information to any stakeholders. 

Transparency and accuracy are the two main qualities that define how successful you are in your current role.   

The best way to do that is to store your HOA documents online. This way, your files are easily accessible to board members and homeowners alike. 

Besides, it also makes board transition easier. When new board members are elected, they know exactly where to locate important financial records. It also helps auditors or CPAs (certified public accountants) do their job more efficiently.

With organized and easy-to-find financial records, you can easily spot issues or find opportunities. It will guarantee fewer headaches and ensure you always have a safe copy.

2. Ditch the financial jargon when communicating with residents

You can’t expect everyone to have financial knowledge. Some people struggle to understand basic financial principles. So, to avoid confusion, your communication must be clear and concise. In most cases, it is better to ditch the financial jargon and tell a story that people easily understand and remember. Here are a few tips you can apply to get your message across:

• Give concrete examples 
• Use figurative language (example: metaphors)
• Engage your audience (make space for questions and discussion)
• Use graphs, and charts instead of a raw list of numbers
• Add colors and easy-to-read fonts 

If you are sending a written communication, you should use different HOA communication tools. People have different lifestyles and different generations may live in the same HOA. You want to make sure all of your residents get the message.

3. Host HOA budget meetings

As an HOA treasurer, one of your main tasks is to prepare the HOA annual budget. 

To perform this task, you need the help of other board members. You may also require the help of a CPA (certified public accountant).  

Meeting regularly is essential to facilitate teamwork. Gathering to discuss numbers and estimates helps you make sure that everyone is on the same page. 

It is also a great way to involve residents in the process and check if expectations are aligned. Over time, it will increase the residents’ level of trust in the board. 

Finding a date and time that suits everyone can be complicated. To make it easier for everyone to attend, you can host HOA budget meetings online.  

Board members, residents, and external partners can participate from the comfort and security of their homes. 

4. Implement a strong process for HOA fees collection and delinquencies

Many HOAs struggle with managing cash flow. That is why it is important to have a process in place to collect dues and payments efficiently.  

If you don’t receive dues and payments on time, it will affect your financial operations. There is nothing worse than losing track of them. 

To avoid this situation, you need to be able to easily check whose invoice is paid and whose is pending. You should also have a process in place that reminds residents to pay their dues when the due date has passed. 

Some online platforms allow you to collect HOA fees online and send automatic reminders to residents that don’t pay. 

5. Conduct regular HOA reserve studies and audits

Conducting an HOA reserve study or an audit may seem like a daunting task. Knowing this, board members may overlook these important activities. 

While this is a demanding job, it can save you a lot of time in the long run. It is also a good way to avoid financial worries. Here are some examples:

• Have enough reserve for large repairs or replacements 
• Avoid special assessments
• Prevents hazards and liability issues 
• Be financially ready for natural disasters 

You should hire auditors and experts to perform these tasks. In this situation, your main role is to oversee the whole project and ensure that it is well-conducted. You will also act as the intermediary between the board and the external vendors.

Bonus tip: Develop your financial skills

We couldn’t let you go without giving you this bonus tip. This one is actually useful to any HOA board member. Since you are reading this article, you already doing it.

Learn new skills and develop existing ones!

You can do that by watching Continuing Education Classes like the one below or by reading blog articles and ebooks. 

Final points

Managing the finances of an HOA can get quite complex. By learning new skills and applying best practices you can simplify your financial processes and improve as an HOA treasurer. 

Click on the image below if you would like to learn about HOA accounting software that allows you to store financial records online, host online budget meetings, collect dues and payments online, and issue financial reports in a few clicks.