- Review. The first step is to start by reviewing last year’s budget. One of the best ways to see where money is to pay attention to last year’s expenses. Sometimes things end up costing more than expected, so it’s important to review expected vs. actual costs when planning the next year’s budget.
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With these steps and good common sense, your community will benefit a lot from a well-planned budget. Always keep clear records and pay attention to where the money is going. Becoming complacent and just letting money come and go without discipline or planning is one of the main reasons HOAs have budgeting problems.
For many larger associations, even those that are doing their best, managing financials and preparing budgets can be an overwhelming task. If you are in this boat, contact Spectrum for our complimentary budget review, we are happy to perform a review and offer suggestions at no cost to the association.