HOA accounting software: what the books need, and what it costs

What HOA books need that a small business's do not

A shop sells things and counts the profit. An HOA collects assessments, spends them on common property, and is not meant to profit. That changes the books in eight places.

Cash or accrual?

Cash basis records income when money arrives and expenses when you pay. Accrual records assessments when they are due and bills when you receive them, so unpaid dues show up as money owed to the association. Cash is simpler. Accrual is more work and shows more. The IRS accepts the method an association regularly uses, as long as it clearly shows taxable income. Ask your accountant which one your governing documents and state law expect.

Does an HOA pay income tax?

Sometimes, on a small amount. What follows is general information from the IRS instructions for Form 1120-H, not tax advice. A CPA who knows associations should file the return.

A qualifying association can file Form 1120-H instead of Form 1120. On Form 1120-H, the dues, fees and assessments that owners pay for the common property are left out of taxable income. The IRS calls this exempt function income. What is left is taxed at a flat 30% for condominium and residential associations (32% for timeshare associations), after a $100 specific deduction.

Some income is taxed. The IRS lists interest on a sinking fund (your reserve account), payments from nonmembers, and payments from members for special use of the association's facilities. That is why the chart of accounts below keeps reserve interest and facility fees apart from assessments.

• The election is yearly. You make it by filing Form 1120-H, generally by the due date including extensions.
• Two tests. At least 60% of gross income must be exempt function income. At least 90% of expenses must be for the association's property.
• Reserves and the 90% test. The IRS counts replacement costs for common buildings and leaves out transfers into a sinking fund for a future roof. So record reserve contributions as transfers, not expenses.
• Compare both forms. The IRS says to compare the tax under Form 1120-H and Form 1120 and file the one with the lower tax.
• Due date. Generally the 15th day of the fourth month after year end, which is April 15 for a calendar year. Form 7004 asks for an extension.

The four ways to keep HOA books

Most self-managed associations end up with one of these. Prices are the ones the vendors list.

1. A spreadsheet

Free, and fine for a very small association with one careful treasurer. The weak spots show at the handover: it is one person's file, it has no change history, and owners cannot see balances or pay online.

2. General accounting software

QuickBooks Online lists plans at $38, $85, $140 and $340 a month, for 1, 3, 5 and 25 users. The page shows 50% off for the first three months. It is general-purpose, so the HOA structure is yours to build. That means one customer per home, an operating and reserve split (class tracking is listed from Plus), and your own chart of accounts.

3. HOA software for volunteer boards

PayHOA, RunHOA and ManageCasa are built for associations run by their owners. Each combines dues collection, an owner portal and accounting. RunHOA lists HOA accounting, budgeting and 1120-H form generation for a flat $399 a year. PayHOA lists bank reconciliation, a custom chart of accounts and 40+ reports at every size. ManageCasa adds bank sync from its Growth plan and caps the accounts you can add to its chart at 10 on Base. Read each feature list against the questions below.

4. Software for management companies

Buildium, Yardi Breeze, AppFolio and Vantaca serve property and community managers with portfolios, and are priced that way. Yardi Breeze Premier lists $1 per unit per month for associations with a $400 monthly minimum. Buildium says to call. AppFolio and Vantaca ask you to request a quote or book a demo. For a volunteer board of 64 homes, the minimum alone is $400 a month.

What HOA accounting software costs

These are the prices each vendor lists on its own page, checked on 28 October 2026. Where a page lists no price, the table says so. We could not load Easy HOA's price page for the check, so it is not in the table.

What that adds up to for 64 homes

• RunHOA: $399 a year, which is $33.25 a month.
• QuickBooks Online Plus before the promotion: $140 a month, which is $1,680 a year.
• Yardi Breeze Premier for associations: 64 units at $1 is $64, so the $400 monthly minimum applies. That is $4,800 a year.
• PayHOA and ManageCasa: priced by unit count. Their smallest tiers (1 to 25 units) start at $49 and $45 a month. Use their calculators for 64 homes.

Payment fees are a second price

Online dues cost money to collect. PayHOA lists $2.45 per bank transfer and 3.5% + $0.50 per card payment. The board can absorb the fee or pass it to the owner. On a $200 payment, a card costs $7.50 and a bank transfer costs $2.45. RunHOA names Stripe as its payment gateway and does not state fees on its pricing page. Ask every vendor for the full fee list, and decide who pays.

Nine questions to ask before you buy

1. Are operating and reserve kept apart? In the books and in the bank accounts. Ask to see a balance sheet with both.
2. Can I see every home's balance and an aging list? You should find the late homes in one click.
3. Can I enter the budget and run budget against actual? By account, every month.
4. Does it reconcile to the bank statement? Bank sync or a file import, and a clear mark on each reconciled line.
5. Can it total what each vendor was paid and store W-9s? You need the totals for the January 31 filing described below.
6. Can I export everything, any time? PayHOA says it keeps your data for 30 days after you cancel. ManageCasa says you can export your data whenever you need it. Ask the others.
7. What is the total price? Include payment fees, add-ons and minimums, for your home count, in writing.
8. Who pays the online payment fees? The association or the owner, and can you set it by payment type?
9. Who helps the next treasurer? PayHOA lists free onboarding, data import and support. Ask each vendor what a new treasurer gets in the first month.

A starter chart of accounts for a small HOA

A plain list for an association with an operating fund and a reserve fund. The numbers are a convention. Change them to fit your software and your accountant's advice.

• Reserve interest and facility use fees have their own lines because the IRS does not treat them as exempt function income.
• The due from and due to accounts record money one fund owes the other. They net to zero across both funds.
• The monthly reserve contribution moves from operating to reserve as a transfer, not as an expense.
• Some tools cap custom accounts. ManageCasa's Base plan lists 10 added accounts, so check the limit before you copy this list.

The treasurer's monthly close

Do these in order, once a month. It takes less time than catching up after a quarter.

1. Record every deposit against the home that paid it, including checks and online payments.
2. Enter vendor bills, approve them as the board's rules require, and pay them.
3. Reconcile each bank account to its statement. Operating and reserve are separate accounts.
4. Post the monthly transfer from operating to reserve that the budget calls for.
5. Review the delinquency list: who owes, how much, for how many days. Send the reminders the board agreed.
6. Compare actual with budget. Write one line on each account that is far off.
7. Send the board a package: balance sheet, income statement, budget comparison and delinquency list.
8. File the statements and invoices, and take a backup or an export.

Once a year

• Before the first payment to a vendor, ask for a Form W-9.
• By January 31, file Form 1099-NEC for each person you paid at least $2,000 for services in the year. That is the IRS threshold for tax years beginning after 2025. The IRS treats nonprofit organizations as being in a trade or business for this rule. Ask your accountant whether it covers your association and which vendors.
• By the 15th day of the fourth month after year end, file Form 1120-H or Form 1120, or file Form 7004 to extend.
• At the annual meeting, present the year-end package: balance sheet, income statement, budget against actual and the delinquency list.