Having accounting responsibilities is no mean feat. Several thousands, sometimes lakhs and crores of money have to be tracked by the individual(s) in charge of the accounts of any establishment whatsoever, A housing society accountant or the management committee member responsible for the accounting job to be done flawlessly, is no different from corporate accountants. The job perhaps becomes slightly harder since they are answerable to each and every resident of the community about total income, expenditure and savings. Perhaps, that is why we observe a rising trend of housing society accounting software in the market. Such accounting software eases the job of the management committee and also cuts down the chances of errors in the books drastically.
The Management Software You Need
As a management committee member in charge of your society’s accounts, there are several things you need to take care of. Two primary responsibilities are – tracking income/expenditure and reconciliation of the books.
Transparency is of utmost importance in a housing society. There is no hierarchical system of administration in a housing society. It is a team of equals, therefore, chances of clashes at the slightest possible miscommunication is very high. To ensure a peaceful and harmonious environment in your housing society, the first rule is to keep the finances in order always.
The committee must keep regular track of all income and expenses made. Considering housing societies are growing in size daily, with hundreds of units in a single premise, it is very important to keep a regular check on the financial records of the society. Housing society accounting software gives you the privilege to track expenses and income of your community right in the palm of your hands. It gives you the leverage to accomplish your management committee responsibilities from the comfort of your home or in between your day’s activities. Considering, these software give a select few people admin access on the backend, it helps to keep finance details safe.
Tracking expenses and income daily has long standing benefits – it stops any kind of financial leakage in the initial stages; helps to understand expenses that are unnecessary; gives an idea to budget more sustainably; assists to devise plans of investments on community infrastructure with good ROI.
There’s No Investment Like Cost Optimisation
Keeping a stagnant income-expense tracker or a model where expenses are high, is not sustainable. The long term goal of all housing society and their respective residents should be to reduce expenditure with every passing year and focus on infrastructure development contributing to longer shelf life of the community.
Housing society accounting software are equipped to help optimise the costs of maintenance of your society with time. Regular tracking of expenses, their comparison with the income with proper visual representations, instant recall of past records together give an in depth view of the financial status of the community. These records give the comprehensive data required to strategise a leaner and more sustainable financial model for the society.
Purchase requests with an approval model also help to bring down costs. Before any item is bought for the use of community members, it always helps to review it and ask “Why do we need it?” multiple times.
Most housing society accounting software come with integrated services like tracking community staff attendance. This in turn helps to understand if the investment done on human resources for society management is bringing back the desired ROI or not. The thorough documentation helps to bring in gradual and sustainable changes in the financial model that helps the community not only save more, but also augment revenue.
Book Reconciliation Must Be Your BFF
If you are in charge of your housing society’s accounts, you know by now, this is as good as the responsibility you have to shoulder in office or at home. One of your primary duties, is reconciliation of all books.
This is where housing society accounting software is a massive help. It is a known fact that the management committee volunteers their time to society management beyond the usual call of duty. A housing society has its income under several heads. Apart from maintenance, there’s utility bills, payments from facility booking or even payments from third parties in case, the society rents out community assets. Expenses include payment of taxes, staff salaries, regular maintenance of the community among others.
Different stakeholders who contribute to the society income also prefer a variety of payment methods. The best part about housing society accounting software is they come with an inbuilt feature of allowing maintenance payments in the frontend. It accommodates payment through UPI, Credit/Debit Card, Netbanking, cheque or even cash. It helps to know how many online and offline transactions have occurred. It also helps the societies to find the most effective payment mode to ensure fund collection is more streamlined.
Housing society accounting software can link in more than one Association bank accounts. However, switching between records in a digital space is easy and with automatic updates of the books, reconciliation becomes that much easier. One of the greatest advantages of regular and quick book reconciliation is to prevent leakage of funds for any reason whatsoever. Also, it lightens the burden on the finance team of the committee during the annual audits. Your books are constantly updated and reconciled to be given to the auditor, as is.
Reduce Defaulters & Communicate Better
Housing society accounting software are not just there to aid with accounting. These software and apps are multipurpose. Designed to not just do your accounting but also augment revenue. A step in that direction is auto generation of invoices as well as reminders to pay maintenance dues. A simple reminder goes a long ago to cut down defaulting noticeably. It helps to augment revenue of the society at large. Not just that. They also help the MC communicate with residents through app notices or SMS or emails regarding any important notice. Housing society accounting software is the modern solution to the age old problem of seamless administration in housing societies.
ADDA has been in the field of housing society accounting software for 10 years now. Besides a strong accounting base, they offer a host of services and features to help you live the luxury apartment life fully. To check us out, click here.
You may also like to check out, Cooperative Housing Society Accounting – Best Practices.