Streamlining Association Accounting

Using Technology to Your Advantage

By Rodrigo Contreras / Published August 2024

The landscape of community association accounting is evolving rapidly, and with it comes the need for more efficient, transparent, and streamlined accounting operations. For association boards, embracing a modern approach to accounting is no longer an option but a necessity. Practical technological enhancements, such as implementing an online owner’s portal, digitizing accounts payable, and creating a digital filing cabinet, are worthy investments that can profoundly improve accounting operations for associations. Although implementation can seem daunting, considering key factors for integrating these technologies increases the likelihood of a smooth transition and lasting benefits.

Practical Technological Enhancements

     Effective technological enhancements should increase efficiency, transparency, and overall satisfaction in association accounting operations. In this context, these three key upgrades stand out for their significant potential to achieve these objectives. 

1. Owners’ Portal: Enhancing Efficiency and Transparency

     If your association has 150 units or more, Florida Statutes mandate a secure, owner-only accessible website or portal. Starting January 1, 2026, this requirement will also apply to associations with 100 units or more. So why not turn this obligation into an opportunity to enhance accounts receivables efficiency and boost transaction transparency?

     An easy-to-understand and user-friendly owners’ portal can greatly enhance the efficiency of managing accounts receivables. A portal that enables owners to make monthly maintenance and special assessment payments online using their preferred method—debit card, credit card, or bank account—and offers options for partial payments, one-time payments, or automatic enrollment is invaluable. This not only streamlines the collection of monthly maintenance fees but also has the potential to reduce delinquency rates by providing convenient and flexible payment options.

     The ability for owners to view their account ledgers at their convenience enhances transparency and trust, making the owners’ portal an even more valuable resource for both owners and the association. Transparency is a key benefit here. When owners can easily access and understand their financial obligations and payment histories, confusion is minimized, and the number of inquiries to the management office decreases. This digital transparency fosters trust and ensures that owners are well informed about their financial standings, reducing disputes and enhancing overall satisfaction. 

     While an owners’ portal may seem like a minor enhancement, accounts receivables play a crucial role in establishing trust between owners and the association. Errors in accounts receivables processing or poor access to account ledgers can erode owners’ trust. Streamlining accounts receivables with an owners’ portal is a cost-effective way to create a solid foundation of trust, ensuring transparency, reducing errors, and enhancing overall satisfaction.

2. Digitized Accounts Payable and Vendor Management: Speeding Up Processes

     The importance of efficient accounts payable and vendor management systems is often underestimated, yet they are intrinsically linked and vital to association operations. Poor vendor management can disrupt a well-developed accounts payable process and vice versa.

     Digitizing the accounts payable process from start to finish can significantly streamline operations. A system that allows for the digital upload of invoices, enabling managers and board members to view, approve, decline, or comment on them from the comfort of their homes, ensures a secure and efficient process. When combined with the ability to process approved payments with digital signatures, the accounts payable workflow becomes even faster.

     A well-implemented digital vendor management system can further streamline the accounts payable process by creating profiles for each vendor, complete with a ledger of all received invoices, details of when and by whom they were approved, and comprehensive payment records. The result is a meticulously organized virtual filing cabinet, ensuring all invoices are paid and recorded properly.

     These technological upgrades not only speed up the payment process but also create a ledger of payment activity. Fortunately, these two systems often come integrated, eliminating the need to search for separate solutions.

3. Digitized Association Files: A Virtual Filing Cabinet

     How does your association store and organize owner files, vendor contracts, and other important documents?

     The digitization of association documents goes beyond financial management; it creates a comprehensive virtual filing cabinet for all association records. Properly digitized and meticulously organized documents allow for quick and accurate retrieval of records, from years-old invoices to previous owner records.

     This digital transformation reduces the time spent searching for essential documents, enabling accounting and management personnel to address matters swiftly and accurately. Moreover, it ensures that all records are stored securely and can be accessed easily when needed, promoting better governance and accountability within the association.

     While this upgrade can significantly enhance the efficiency of your association, it may require considerable time and a substantial software investment, depending on your current procedures. However, if implemented correctly, this upgrade can have the most profound impact on your association’s efficiency.

Implementing Technology in Association Accounting: Key Considerations

     The aforementioned technological upgrades can be easily achieved through changes in software. However, associations must carefully evaluate their specific needs, the capabilities of their personnel, and current accounting structure before making any changes. A comprehensive assessment ensures that the chosen technological upgrades align with the association’s existing processes and resources, ultimately facilitating a smoother and more effective implementation. With this in mind,  following are the key considerations to address: 

1. Conduct a Needs Assessment

     Before introducing new software, conduct a thorough needs assessment. Identify the specific pain points in your current accounting operations and determine which solutions can address these issues most effectively. Engaging with board members and owners can provide valuable insights into the areas that require improvement. 

2. Consult with Your Association’s Staff

     Engage with your association’s staff to gather their insights and understand their technological capabilities. Their firsthand experience and feedback are invaluable in identifying additional pain points and ensuring that the technological upgrades meet the practical needs of day-to-day operations.

3. Consider Your Association’s Accounting Structure

     Is your association self-managed, or do you outsource accounting, management, or both?

     Your current accounting structure significantly impacts the ability to implement new software. Self-managed associations have complete control over their operating procedures, enabling them to make changes based on their needs assessment. In contrast, associations that outsource accounting, management, or both face the challenge of working within the procedures set by their accounting or management firm. However, your accounting or management firm may still be able to facilitate the implementation of your desired technological upgrades. If they are unable to support these changes, you should evaluate the importance of these technological upgrades to your association. It may be necessary to consider a change in firm or structure to achieve these goals.

     The rapidly evolving landscape of community association accounting necessitates the adoption of efficient, transparent, and streamlined operations. Implementing practical technological enhancements, such as an online owner’s portal, digitized accounts payable, and a virtual filing cabinet, can significantly improve an association’s accounting processes. However, successful implementation requires a careful assessment of the current accounting structure, specific needs, and staff capabilities. By conducting a thorough needs assessment, consulting with staff, and considering the association’s accounting framework, associations can ensure a smooth transition and lasting benefits, ultimately enhancing operational efficiency and overall satisfaction. 

Rodrigo Contreras

Cofounder and Chief Operations Officer, The ERRO Group

     Rodrigo Contreras is a cofounder and chief operations officer for The ERRO Group. For more information call 786-767-2111, email ro@theerrogroup.com or info@theerrogroup.com, or visit www.theerrogroup.com.