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DonN (Michigan)
Posts: 357
Posted:
Are there any owners associations that use online accounting services, such as Quickbooks Online? With such services, members and board members would have access to the accounting, but of course would not be able to change the accounting. I would appreciate the experience from board members and the reception by members.

More and more of these services are going to be available to owners associations.

RobertR1 (South Carolina)
Posts: 5,164
Posted:
Don,
I know little about them other than I have been seeing more and more being offered. I am not sure how they will save any money if you already use Quick Books or something. Data storage maybe and haven't seen any legal talk about that aspect. Still need someone to spend the money and get receipts and keep paper records and compile data and input it. But I will say this if what we see come through this site is any measure, there seems to be a need for something. Some associations members just don't care what goes on or has no interest or the smarts to understand how it goes on, or the desire to even pay any attention . I really think this is getting worse and if on line quick books would wake some of them up, I'm all for it. These newer HOA's get a wretched situation dumped on them by the developer and instead of time and interest helping to make it better, time and "I don't give a damn, let someone else do it" contributes to making matters worse. It also is of notice that there are so many individuals that have decided, I got this job dumped on me, so therefore, I must be the boss and they are going to do what I say. Those people can't get anyone to pay any attention to them so they select the few that do show interest and start pushing them around.
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
DonN
I use mint.com and it sounds like thats exactly what you need and its free. Quicken just bought mint and shut down their quicken online because mint is so much better.

Mint basically reads the info from the bank accounts and auto categorizes it. IE: bills plumbing is "plumbing"

You cannot do any online banking like writing checks, and cannot change anything. Its read only. You cant even see the bank account information once its entered in. But it would allow them to see in real time what expenses are taking place, when, amount, trends etc...

Perfect tool for any HOA.
DanielH1 (California)
Posts: 482
Posted:
I'd like to but many HOAs and management companies are stuck in 1982.
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
DanielH1
It pretty easy, just get them to agree to it.

Have an officer sign up for mint under the HOA's email address. Then give the login/pass to the management company. Ask them to add the HOA's online banking account to mint. It will auto update every day and even send you alerts to your email or cell phone on large purchases (you set the amount)

It would take about 10 minutes of work on behalf of your mgmt company.

I've been using mint.com for over 2 years. I love it and its free.
DianeW (Maryland)
Posts: 147
Posted:
I use Mint.com for my own banking and it is easy and generally decent. It has limitations but not a bad idea for the HOA if they are using banks that are in the Mint.com data base. Our HOA bank is not. I am running a spreadsheet made up by a former treasurer and also run the HOA finances through Microsoft Money which is now discontinued.
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Change banks.

I changed banks when I took over financials of our association. It was pretty easy. I have no loyalty to any bank, they are just a place for me to pay bills, deposit checks, etc. Now that I use mint, I only stick to banks that function with mint.

Most banks work, but some small banks such as tiny credit unions and banks who have no online banking do not. You can request mint to add your bank, but I assume you would need "x" number of requests before they did it.

My advice? Stay with larger banks and mint will work flawlessly. Mint and other services that are similar are worth it. Stay on top of your HOA finances! Doesnt matter if its your treasurer or mgmt company, you need to keep an eye on it.
LeoL (Michigan)
Posts: 2
Posted:
Don is talking about Quick-Books Online Accounting. Most of the replies refer only to the use of Mint which is a subsitute for just the Quicken Software. Quick-Books Online is a full fledged Accounting System. I've used it several times in the past and it is excellent. Do not confuse Quicken with Quick-Books Online. They are not the same. Using the online system, the accounting data is available for review 24 hours a day from anywhere in the world using your laptop. It's a read only system for the vast majority of users. The data can be copied to the Microsoft Excel Worksheets where you can sort the data anyway you desire.

It has the abilty to eliminate many, many questions which are normally raised in monthly meetings. The cost of the system for non-profits is very reasonable. Just Google it and enter Intuit Quick-Books to learn more about the entire system.

Leo Lyddy
LeeW3 (Florida)
Posts: 1
Posted:
Can someone advise me of online banking for the Board of Directors. I have been told that it can compromise the fidelity Bonds or the insurance protection for the property or the board of directors. Has anyone ever heard of this? I live in the State of Florida.
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
LeoL

True, for $35 month, quickbooks online offers read-only of detailed reports or $10 month for less reports. I think the detailed reports from quickbooks online are too detailed for non-accounting people to look at. Might cause panic when they see something is 200% over budget for the month, but its a once a year expense or similar circumstances that could cause panic from ignorant people. Also I wouldn't want to see people trying to target individual owners by watching their payments.

LINK
http://quickbooksonline.intuit.com/screen_permissions.cfm

For free, I can use my bank's online banking and mint.com to do basic reporting.
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Quote:
I have been told that it can compromise the fidelity Bonds or the insurance protection for the property or the board of directors.


Its probably not a good idea a board member can access accounts, I would leave that to the treasurer, the elected officer. If an insurance claim was ever made for mismanagement of funds, you would have alot of explaining to do as a board member as to why you were accessing the accounts.

But it sounds like FUD. (Fear, uncertainty, and doubt) Your accounts are "online" somewhere. Everything is computerized and accessed by someone, somewhere.
DonN (Michigan)
Posts: 357
Posted:
I've exchanged information with others re online account. One is assisting an owners association to put most documentation online including accounting.

It seems clear that different levels of permissions are required. The link, Multiple permission levels describes the capability with QuickBooks Online Plus.

One of the general restrictions is to protect the accounting information on members' accounts. However, the totals in the form of Accounts Receivable, Uncollected Dues and Assessments, etc. should be available. A related need is for the name and address data base for owners/members. The name and address data base may need to be separately maintained with a software connection to the online accounting.

With online accounting, board members can access the accounting at any time and generate reports of interest. Members can do likewise but may have access to less information. An important aspect is for the online accounting to provide good graphics for various reports. The important messages are sometimes difficult to identify in bedsheets of numbers, while a good graphic hits you between the eyes.

To provide answers to questions, the online accounting should be able to "drill down" to provide the journal entries that create a summary line item in a report merely by double-clicking on the summary number. This obviates the need for members to inquire of the association office to answer such questions.

Of course, another advantage of the online accounting are the build-in controls to help prevent fraud and embezzlement.

Unfortunately, it appears that none of the frequent contributors to HOA Talk has any experience with premium online accounting services. I hope there are several.

JohnO6 (Georgia)
Posts: 424
Posted:
Don - it appears more and more that you're really looking for a complete online property management system, of which accounting is one component. I have looked at (but don't have first hand experience with) a few of these types of systems. One that looks interesting is Buildium at www.buildium.com

I have no affiliation with the company whatsoever, just trying to help your search.
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Quote:
Unfortunately, it appears that none of the frequent contributors to HOA Talk has any experience with premium online accounting services.


I've had many dealings with premium accounting services, but alas, they are far from reach of an HOA. Oracle Financial Suite, Crystal Reports and more. Premium accounting packages require a financial and/or database administrator either on staff or on a contract basis, software package, server, etc. Your talking big bucks.

Once you get into premium accounting programs, everything is customized to "you" The sky is the limit for pricing.

SteveM9 (Massachusetts)
Posts: 3,699
Posted:
So..... if your really interested in "premium" accounting packages, you need to set up appointments for consultations with these companies so you can figure out who would be the best vendor for your needs and size.
DonN (Michigan)
Posts: 357
Posted:
My focus is on QuickBooks Online because of its broad use. I posed the question in more general terms because other online accounting software might be available. Many posts on HOA Talk indicate the use of QuickBooks for accounting. I was hoping there might be a few who are using QuickBooks Online and might be able to share their experiences with its use.

I am not interested in special accounting software because I consider the costs of development to be wasteful.

RichardV1 (Arizona)
Posts: 1
Posted:
I am new to HOA Talk.
I am the Treasurer of a 192 unit HOA in Arizona.
We are self Managed having terminated the Management Co. 4 years ago.
I keep the books using Quick Books Pro and find it does everything I need accounting wise. It has excellent drill down capabilities.
I do not see any reason to use so called "Premium" software or for that matter to use QB online.
Our accounting is done on a full accrual basis, but QB works just as well for those who choose to use
the "Cash" basis of accounting.
We record assessment revenue each month on the books, but assessments are payable quarterly, semi annually or annually.
Over half the owners pay for the full year with one check or pay semi annually.
We do not use any coupons in connection with assessments.
We do not send assessment invoices to the homeowners.
192 invoices are prepared on the computer with one push of a button each month by using the "Memorized Transaction" feature
in Quickbooks.
We do not print paper invoices.

We have virttually no assessment delinquencies. In 2009, we issued only three late fees.

Bank reconciliations are prepared each month and the YTD monthly financial statements are posted
by the 10th of the following month to our web site. They include a Balance Sheet, YTD Income Statement, YTD Actual vs budget,
a schedule of investments and a schedule of Reserve Fund activity for the month.
In addition, we post the monthly bank statements, (Operating and Reserve Accounts) to the web site every month.
They show all deposits made and every check issued during the month. We also post minutes of all Board meetings to the web site.
This practice of total transparency where owners can review the information at their convenience via the internet
is very popular with the owners. Based on reviews they do, they can follow
up with any specific questions they may have.
Over 75% of our owners have internet access. Accounting inquiries from the remaining owners are handled on a manual basis.
I use excel to do other financial analysis when required.

The only other improvement I would like to see for QB is a version that does financial reporting on a fund accounting basis.
DonN (Michigan)
Posts: 357
Posted:
RichardV1, thanks.

I did have a question about whether or not QB provides for fund accounting. It sounds like it does not. However, I expect that an account with the fund name could be created. The "drill down" on the account would then show the debits and credits for the "fund".

SteveM9 (Massachusetts)
Posts: 3,699
Posted:
DonN
If your only interested in Quickbooks, you should direct your questions to the Quickbooks sales staff. I'm sure they could help you out with specific questions about their product.
FranS1 (Michigan)
Posts: 10
Posted:
Don-
I am interested in what you find to use. It sounds like we have similar needs. I am looking for something that will keep track of the members (39) info, send invoice for dues and fees, do the reports and reconcile the bank statements.

Please keep me posted. Would love to talk to you sometime on this.

P.S. WE are currently doing ours manually and do not have much $$ to spend on software. I too would like something online so the officers would have access.
SteveM9 (Massachusetts)
Posts: 3,699
Posted:
Quote:
Posted By KardanK on 05/26/2011 1:40 PM
What about Intacct? I am hearing good stuff about it, but have not used it. Anyone use it yet?
It says The Fastest Growing Financial Applications on their website.

Intacct looks very powerful. Depends on the size of your HOA. Might be good for a HOA with 6,000 houses. With prices starting at $400 per user, per month, its a little too rich for my blood.
PreciseE (New Jersey)
Posts: 6
Posted:
Hey yes whatever you wrote is true.This is the right message i have ever read.

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