Community management teams offer specialized guidance to associations and neighborhood factions. They provide financial management services while maintaining control over community planning and project implementation. All community managementservices should be customized to adhere to your association’s particular guidelines, as they can vary by community. Here’s more information about financial management services and their benefits for community associations:
What Financial Management Services Are
Financial management services are often consultative, but they can also be used for making proactive decisions. A community management firm that offers financial services plays an advisory role and works with the board to help it reach the community’s financial goals. If a community association has a well-established management system, additional financial services can further streamline the administrative workload. These are some of the services provided by financial management teams:
- Collect assessments, also known as residence fees, by the required due dates
- Handle invoices, approve bills, and make sure everything is paid on time to avoid late fees
- Provide detailed records of assessments and delinquencies and contact homeowners regarding late payments or other delinquencies
- Audit financial records and prepare documentation on recurring schedules or as necessary
- Protect association funds through centralized management and internal control
- Track, monitor, and update financial databases
- Create monthly reports for the board so they can assess schedules and see what has been completed and what remains to be addressed
- Provide guidance on resale documents or refinancing considerations
- Prepare and distribute annual budgets to homeowners as approved by the association
- Cooperate in tax preparation and provide assistance with additional government agencies
- Manage and maintain reserve accounts, if applicable
Board members have many responsibilities within their communities, such as rule enforcement, meeting participation, and conflict resolution. Delegating financial responsibilities to a third party helps distribute these responsibilities. A professional management company with relevant experience and ongoing training is prepared to handle a community’s financial needs.
Why Financial Services Are Beneficial
Association board members may not be financial experts. Financial community management services are performed by financial experts who are trained to make key financial decisions, such as handling expensive emergency situations. Financial management experts are able to suggest a calm and rational response while simultaneously assessing the needs of the community’s financial future. They also are trained to examine audits and homeowner requests thoroughly to avoid making mistakes that may come with fees. They also assess spending trajectories to help the board stay on track to reach the community’s future goals.
If board members are overloaded with assignments for their community, there is a greater chance of neglect or errors. This is due to board members rushing or moving forward with a task before gathering all the facts. A financial management team has the ability to take their time and pay attention to details before making decisions. They monitor red-flag activity in accounts that could be fraudulent charges. Financial management experts identify these concerns by reconciling bank statements with financial reports and step in before a more significant problem arises.
Community boards may benefit from having an expert present during financial discussions to mitigate conflict and provide direction. Financial management services implement checks and balances for the board. These include designating one member for invoice approvals and another for check signing or online payments. Management professionals may also recommend solutions like requiring multiple signatures on transactions over a specified dollar amount, not allowing the same individual to record receipts and make deposits, or confirming checks are addressed to the association rather than an individual board member. The implementation of these rules can be handled by the financial management service.
Find Community Management Financial Services
The financial matters of a community association benefit from expert involvement, confirming that money is well spent, bills are getting paid, and community goals remain on track. Hiring a financial management service provides direction for small and large communities who need help. Financial experts save board members time and effort so they can focus their attention on maintaining a functional and friendly community. Communities may also benefit from budget-creation and transaction-tracking services. Look for financial management services for community associations that can be tailored to fit the needs and size of your community. Contact a community management company today to learn more about their financial services.
