To be prepared for 2023, it is important to have all your budgeting for your HOA community done before November 1st.
Preparing an annual budget for an HOA community is not an easy task; it is a complex activity with many steps. A well-defined, well-written budget is a powerful financial tool allowing funds to be saved and/or allocated for specific costs and projects. It is a way to estimate expenses and ensure that funds are available when they are needed.
As your local HOA service provider, Atlantic & Pacific Management can help your HOA board prepare your budget for 2023, ensuring that your plans are finalized and approved prior to the beginning of the association’s new fiscal year.
Here are some of the key steps we recommend to include in your budgeting process to prepare for 2023:
1. Prepare a business plan for 2023.
2. Develop and/or update protocols and assign tasks to different members of the HOA board or management company participating in the budgeting process.
3. Review financial history for a comprehensive outlook on the community’s financial situation.
4. Project utility costs based on previous years and other applicable market changes.
5. Review vendor contracts and make sure your budget matches the agreements with these vendors.
6. Conduct a maintenance review of your community’s property.
7. Evaluate insurance policies and account for those costs in your budget.
8. Include legal and collection costs in your budget.
9. Plan out reserve funds based on recently conducted reserve studies.
10. Distribute the budget to the HOA board and other important members of the community.
11. Use the budget as a guide and continue to follow it for 2023!
A few additional tips we have are to remember to prioritize important projects, be transparent with your community, and expect the unexpected!
For more information about budgeting, contact Dominic Cirillo.