HOA software can be a great tool for keeping track of your budget and finances, once it’s properly integrated into your system. Being able to see the budget line-by-line compared against a number of other factors such as vendor costs or your reserves can be an excellent way to spot ways to save money.
Massaging your budget always requires some level of human ingenuity, though. Here are some key aspects to focus on when trying to keep it at an optimal level.
HOA Software Can Help You Spot Ways to Optimize Your Budget
- Be Willing To Dig Into the Details
Going through a budget line-by-line may be tedious, but it’s the best way to spot inefficiencies – or potentially even wrongdoing.
Don’t assume that line items for day-to-day expenses like office supplies are too mundane to be worth extra research, something as simple as finding a better deal on your monthly supply budget can pay off with substantial savings across a year or more.
- Watch for Spikes in Year-Over-Year Costs
Another factor many don’t consider when going over their own books is past expenses. This is something else HOA software with an accounting module can help with, since it makes year-by-year comparisons simple.
Look for substantial increases in costs, particularly in recurring costs like utilities or maintenance. If you spot such a spike, start digging to figure out why it spiked.
- Check the Reserve against Upcoming Costs
Any HOA maintains a liquid reserve to make it easy to pay for major improvements, repairs, and so forth. Often, a large chunk of residents’ fees go into this reserve.
But do they need to? If your reserve is flush, and there are no major repairs coming up, that could be an excuse to redirect some of that money to other projects the residents want. Or even look at cutting fees somewhat.
- Look to the Future
Keep in contact with your contractors, vendors, and utility companies. Find out if there are likely to be any major changes in pricing in the upcoming year, so they don’t come as a surprise. Where contractors are concerned, this also gives you time to look into alternatives.
Simplify Your Life with Asyst6 HOA SoftwarePosted by Angie Jimenez Posted on 01 Sep