As an Association Manager, one of our most critical responsibilities is helping our Boards prepare a sound, forward-thinking budget. A well-prepared budget not only ensures the financial health of the community, but also reflects a proactive approach to long-term planning, maintenance, and homeowner satisfaction. The budgeting process may seem daunting, but with the right structure and a bit of prep, it becomes an opportunity to add real value and lead your Board through another successful year of management. 

Here are some of the essential steps for creating an effective budget for your HOA or condo association: 

Budgeting for a community association can be challenging.  It requires balancing the desire to keep assessments low with the need to cover the day-to-day expenses and accumulate funds for future major repairs and replacements.  As auditors, we regularly compare association budgets to actual financial results.  Sometimes, the numbers line up well.  Other times, budgets fall significantly short—or, in rare cases, end up being more than necessary.  Here are some of the top budget-blunders we see: