Getting Started as a Homeowner’s Association Treasurer

Becoming a Homeowner’s Association Treasurer is an important and rewarding role in your community. The homeowners in your community rely on effective financial management to ensure common areas and amenities are managed and maintained. Additionally, you and your board will establish and enforce community rules in line with the CC&Rs to preserve property values and maintain a harmonious living environment for all. If you’ve recently been elected or nominated, let’s explore how to get started as an HOA Treasurer.

Understanding Your Responsibilities

It’s critical to have a clear comprehension of your responsibilities as HOA board treasurer. These responsibilities typically include:

• Budgeting — prepare and manage the HOA’s budget
• Finances — maintain accurate financial records, including bank statements, receipts and invoices
• Collections — ensure timely collection of dues and fees from homeowners
• Banking — Maintain a bank account for the HOA’s funds
• Taxes — Comply with tax requirements and keep records for tax filings
• Financial Reports — Create regular reports to share with the board and homeowners
• Audits — Coordinate or oversee regular financial audits

Familiarize Yourself with Your HOA’s Documents

Each HOA operates under a set of governing documents, which may include bylaws, Covenants, Conditions and Restrictions (CC&Rs), and Rules and Regulations. Familiarize yourself with these, as they often outline financial guidelines, fee structures and your specific HOA treasurer duties. If you’re unsure about any aspect, seek guidance from the association’s legal counsel or experienced board members.

Organize Your Finances

Ensuring your financial systems and processes are set up is a great next step. One of the best ways to get started in this area is to have some time with the outgoing treasurer. We detail this in depth in our Treasurer Transitions guide. Familiarize yourself with the processes of the outgoing treasurer and prepare yourself to set things up as needed if things weren’t run properly with the previous board.

• Bank Account(s) — Ensure any bank accounts are opened in the association’s name, distinct from any one member’s personal finances.
• Software — Consider using financial software or tools that specialize in HOA accounting for better recordkeeping.
• Budget — Review prior budgets and gather input to make intelligent changes. Create a chart of accounts to categorize income and expenses effectively.
• Accounts Receivable — Set up a process for tracking homeowners and renters, and sending statements.
• Payments Process — will you have an online store or use a payment processor like Paypal, Venmo or Square?
• Accounts Payable — Ensure vendors and contractors are paid in a timely manner and that everything is tracked properly in your accounting system.

Plan for Transparency

Communication is going to be the key to success in your new role. Why? Because homeowner dues are at play, meaning they want transparency into where those funds are going. Ensuring that you are tracking everything in a sound financial management system is going to be the best way for you to be able to conduct audits, run reports and answer questions at a board meeting. The treasurer is responsible for this, and should play close attention to detail. All of the information you need should ideally be available with a few clicks of your mouse.

Becoming treasurer is a rewarding way to make a positive impact in your community. Enjoy this opportunity to help your community thrive and create a financially sound investment for all homeowners (yourself included).