Setting Up Opening Balances for the First Year

The initiation of financial tracking within a Homeowners Association (HOA) platform like RunHOA involves several critical steps, one of which is establishing opening balances for Units for the first fiscal year. Opening balances are crucial as they represent the initial financial standing of each homeowner within the HOA, including any pre-existing dues, credits, or balances carried over from before the HOA began using RunHOA. This guide outlines how to efficiently set up opening balances using the “Create Fee” feature in RunHOA, ensuring a smooth transition and accurate financial management from the get-go.

Understanding Opening Balances

Opening balances serve as the financial baseline for HOA members and the association itself. These balances might include accumulated dues, prepayments, or any financial adjustments necessary to accurately reflect each member’s account status at the start of using RunHOA.

Importance of Accurate Opening Balances

• Accuracy in Financial Records: Ensures that all subsequent transactions are based on correct initial figures.
• Transparency with Homeowners: Helps maintain trust by transparently transferring financial standings into the new system.
• Efficiency in Financial Management: Streamlines the management of dues, fees, and payments by starting with a clear financial picture.

Step-by-Step Guide to Setting Up Opening Balances in RunHOA

Step 1: Gather Financial Data

Before entering data into RunHOA, compile comprehensive financial records for each unit, including any outstanding balances, prepayments, or credits.

Step 2: Access the ‘Create Fee’ Section

Log into your RunHOA account and navigate to the “Create Fee” section..

Step 3: Create an ‘Opening Balance’ Fee

• Fee Name: Designate this fee as “Opening Balance” or a similar clear identifier.
• Amount: Enter the opening balance amount for each unit. This can be a positive number (for dues owed) or a negative number (for prepayments or credits).

Step 4: Apply the Opening Balance Fee

• Individually: If opening balances vary by unit, you’ll need to create and apply this fee individually for each unit, adjusting the amount as necessary. Not all units will have opening balances.