Introduction
A Texas-based community management firm overseeing finances for over 55 Homeowners Associations (HOAs) faced operational inefficiencies and skepticism toward outsourcing due to past failures. Our engagement introduced standardized processes, a centralized data repository, and regular follow-ups, resulting in timely, accurate financial reporting and renewed client confidence in the outsourcing. OHI managed month-end closings for 55+ HOAs, handling accruals, amortizations, and reclassifications, and delivering complete financial packages. We processed invoices across all associations and reconciled over 150 bank accounts monthly, ensuring accurate, audit-ready records and timely reporting. The management company was initially hesitant to outsource due to past negative experiences. Financials had been inconsistently prepared, resulting in inaccuracies. Incomplete handovers and missing documentation added to the workload, requiring extensive backtracking and research. The team also faced challenges due to limited training on complex HOA accounts. Delays from the AR department caused frequent revisions in the financials, and the unexpected exit of the client’s main accountant further strained operations.Client Overview:
Scope of Work:
Challenges:
SOLUTION
Regular Follow-Ups
Conducted daily and weekly follow-ups to ensure timely resolution of open
Standardized Checklists
Developed HOA-specific checklists to improve accuracy and maintain consistency.
Centralized Knowledge Hub
Created a shared repository of SOPs, HOA notes, and key references to reduce individual dependency.
Pre-Financial Period Working
Introduced early AP checks, accruals, amortizations, and preliminary bank reconciliations to ease month-end pressure and balance workload.
Second-Level Review
Implemented quality checks for high-priority HOAs to ensure reporting accuracy before final delivery.
RESULTS:
Improved Timeliness:
Month-end financials were closed on schedule, with fewer delays from AR
Higher Accuracy
Standardized checklists and second-level reviews significantly reduced errors
Reduced Revisions
Pre-financial working and resolving issues before month-end helped ensure accurate financials in the first draft.
Operational Consistency:
Centralized documentation improved continuity and reduced reliance on specific team members.
Client Confidence Restored
Consistent performance and clear communication rebuilt client trust in outsourcing.
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