Hoa wants to eliminate their accounting system

Started by JoanneA • 6 replies • 1591 views

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JoanneA (Florida)
Posts: 19

Posted:

As treasurer, I have always used "Quick Books" as they did in previous years. Now I am told the bod wants to only use a spreadsheet/excel after my term is over. I am concerned that the entries of the HOA will not be recorded properly and that the HOA will lose control and the management company will take control. Will this be legal if the treasurer has absolutely no control of the books? What about the responsibility to the homeowners?

JohnC46 (South Carolina)
Posts: 14,265

Posted:

My business experience says a spread sheet allows for more varied/defined explanations/specifics for money spent, then does a "tax based" software which seems to lump things together for taxing purposes.

Now as to how my CPA "groups" things together for my tax return is another issue, but that is what I pay them for.

I do not like to see things such as "Utilites" lumped together. I would rather see Electrical so much. Gas so much, Telephone so much, etc. This gives me a better understanding of where "my", shall I repeat, "my" money is being spent.

I could be wrong.

SusanW1 (Michigan)
Posts: 5,202

Posted:

Quickbooks line items can be entered into sub-categories, so that is not the issue.

This is just moving from one program to another. But . . . I would want to know if the new program can generate needed reports: P/L, Balance sheet, Actual vs. Budgeted, Billing, etc.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Joanne,

We use paper ledgers and spreadsheets without an issue.
The authority/control of the books is always the responsibility of the treasurer no matter who is delegated to actually maintain those books.

If your overly concerned about the issue, why not stay on as Treasurer for another year and create the spreadsheet to be used.

If you would like, contact me and I'll provide you a copy of the spreadsheet layout we use [email protected]

Tim

FrankM7 (Pennsylvania)
Posts: 61

Posted:

Sorry, I can't see Excel providing need financials, invoices, check registers for applicable accounts, budget line items tied to deposits and checks paid, and a double entry system using reliable calculation formulas. With Excel or Numbers, there are too many chances for errors. As said above, QuickBooks can use unlimited subcategories and expanded explanations along with memos on all expenses and income entries. Short of preparing an HOA specific relational database program, QuickBooks far exceeds any spreadsheet for ease of use and reliability.

Then too, neither will give you the vehicle to input, calculate, and report a comprehensive reserve study for future saving needs and planned expenditures. To handle needed tracking, updates, additions, and individual member dues proportionment, a relational database is needed. The alternative to that, of course, is to pay big bucks to a company to do your work for you.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By FrankM7 on 02/09/2012 7:36 PM
Sorry, I can't see Excel providing need financials, invoices, check registers for applicable accounts, budget line items tied to deposits and checks paid, and a double entry system using reliable calculation formulas. With Excel or Numbers, there are too many chances for errors. As said above, QuickBooks can use unlimited subcategories and expanded explanations along with memos on all expenses and income entries. Short of preparing an HOA specific relational database program, QuickBooks far exceeds any spreadsheet for ease of use and reliability.

Then too, neither will give you the vehicle to input, calculate, and report a comprehensive reserve study for future saving needs and planned expenditures. To handle needed tracking, updates, additions, and individual member dues proportionment, a relational database is needed. The alternative to that, of course, is to pay big bucks to a company to do your work for you.

I would defer to Frank. He seems to understand this stuff well.

LawrenceC1 (Georgia)
Posts: 480

Posted:

Quote:

Frank, you are so right. And it is not just errors that double-entry accounting reduces -- it also makes it much harder to embezzle money. It's really hard to hide a rogue check in QuickBooks when all the various reports have to cross-foot. With Excel, it's very easy to game the formulas to hide irregularities.

I have just finished entering our 2012 budget into QuickBooks and now I can forecast the cash balance through the year, and schedule discretionary expenses accordingly. This is much harder to do with Excel.

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