Homeowner Associations

Accounting for the Unique Needs of HOAs

Managing a successful Homeowners’ Association (HOA) requires the mindset of a business owner and a close attention to detail. Properly managing its financials requires specialized knowledge as well as a team that understands the importance of curtailing costs, minimizing risks, and ideally, building on the value of each homeowner’s investment.

There is great advantage to having an experienced accounting firm handle the financial needs of your HOA as opposed to your management company. Like any responsible business, you need a system of checks and balances in place to reduce the risk of fraud or error. The role of a management company is valuable as they envorce policies, handle

day-to-day operations, and perform ongoing property maintenance. Many times, this requires them to pay vendors and manage the funds collected by the HOA to pay for these services. If they are also the ones managing the HOA’s money and creating financial statements, this creates a scenario where fraud is possible. This is why we always recommend having a separate entity manage the day-to-day tasks like payroll and collections, as well as the larger tasks like tax preparation and planning, budgeting, and preparing financial statements to present to the board.

Our Homeowner Association Clients Count on Us

Bailey Scarano has decades of experience helping homeowners’ associations like yours with their day-to-day accounting and yearly financials and tax returns. We understand the unique challenges you face and the often oblique rules that apply to member organizations. We can help you remain compliant and ensure your HOA, and its money, are managed properly and running smoothly.

  • Financial statements
  • Tax returns
  • Budgets
  • Financial planning
  • Form 1099s for vendors
  • Bank statement reconciliation
  • Board communications
  • IRS representation

Want to Learn More?

Reach out to Bailey Scarano today. We would love to talk to you about your HOA’s unique needs and how we may be able to help.

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