HOA Chart of Accounts: A Free Template for a Small, Self-Managed Association

A chart of accounts is the list of categories your HOA uses to record every dollar. A small HOA needs about 25 of them. Use the same lines as your budget, and keep operating money apart from reserve money.

• Same lines as the budget: "Landscaping" in the budget is "Landscaping" in the books.
• About 25 core accounts: add optional ones only when a real bank line needs them.
• Two funds: operating for the yearly bills, reserve for big future repairs.

What is a chart of accounts, and does a small HOA need one?

A chart of accounts is a numbered or named list of categories. Every deposit and every payment gets filed under one of them. Add them up at the end of the month, and you have your numbers.

A small HOA does not need accounting software to have one. A spreadsheet with a category column is a chart of accounts. The point is that every transaction lands in the same place every time.

The payoff comes when you compare the books to the budget. If the two lists use different names, someone has to translate each month. If they match, you can read them side by side.

Why should the chart use the same lines as the budget?

Budget versus actual only works when both sides use the same categories. Say the budget has one line for "Utilities (common electric)". The books have three accounts for electric, gas and trash. Now the treasurer adds up three numbers just to compare one.

So start from the budget. Our HOA budget template has nine expense lines, four income lines and a reserve contribution. Make each one an account, with the same name. Add a few more for things a budget does not show, like the bank accounts and the fund balances.

Keep it short. Fewer accounts means fewer places for a bill to land in the wrong spot. You can always split a line later.

How should the accounts be numbered?

Numbers are optional. A one-person spreadsheet can use names alone. If you plan to move to accounting software, numbers help, because the software expects them.

A common pattern uses four digits, one block per type. The 8000s reserve block is this template's choice:

Leave gaps of ten between numbers (5010, 5110, 5210). You will want to add a line between two others someday.

We found no single industry standard for how expense accounts are numbered. Consistency matters more than which numbers you pick. If your CPA has a preference, ask before you start.

What is the difference between the operating fund and the reserve fund?

The operating fund pays this year's bills. The reserve fund saves for big, predictable repairs. A roof, paving and siding are typical examples.

CPAs who follow the AICPA's guide for community associations typically report by fund. That means the books show a separate balance for each. Ask your CPA what they expect.

In practice, you do three things:

• Keep reserve money in its own bank account. Avoid paying routine bills from it.
• Tag every account with a fund. The template has a Fund column for this.
• Show a separate fund balance for each, so the reserve can be checked against its bank statement.

Reserve rules vary by state. Whether you must have a reserve study, and how much you must save, depends on your state and your documents. Check your state's page and your declaration.

Which income accounts does a small HOA need?

Dues and special assessments are the core. Interest, late fees and other income round it out. Here is the starter set, with how the IRS instructions treat each one.

Optional income lines are violation fines, interest charged to owners, facility rental, parking or laundry, and resale or estoppel fees. Skip them unless your HOA really has them.

The IRS instructions for Form 1120-H say exempt function income is membership dues, fees or assessments from owners as members. They list interest on sinking fund amounts as an example of income that is not. So reserve interest gets its own account. Late fees, fines and estoppel fees are less clear, so ask your CPA how to classify them. Our treasurer report guide covers the tax tests in more detail.

Which expense accounts does a small HOA need?

Nine operating lines cover most small HOAs. They match the budget template line for line.

Add 5610 Income tax if you file a return. Skip gas, snow removal, pest control, elevator contracts and property taxes unless the HOA pays them. Property taxes only apply if the association owns land.

How does the reserve contribution work in the books?

The reserve contribution is a transfer between two funds, not a cost. The money stays in the HOA. It just moves from the operating account to the reserve account.

The IRS instructions for Form 1120-H say funds set aside for future costs, such as transfers to a sinking fund, do not count toward the 90% expenditure test. That test looks at spending on association property. So the template marks the transfer and labels it that way.

The template calls it 8010 Reserve contribution, the same name as the budget line. Two conventions exist for where it appears in reports. Some charts show it as an expense on the operating side. Others move it off the income statement entirely. Ask your CPA which they prefer.

When you spend reserve money on a project, code the bill to a reserve account, not to an operating expense line. The template has 8100 Reserve repairs & replacements. If you have a reserve study, split it into one account per component.

Should an HOA use cash or accrual accounting?

Both are common, and the right one depends on who reads your numbers. Cash books record income when it hits the bank and bills when they are paid. Accrual books record income when it is earned and bills when they are received.

Accrual is the basis that GAAP requires. Reports that a CPA reviews or audits for an association are usually accrual. Many small volunteer boards run on cash, because it matches the bank statement. Ask your CPA which you need.

Whichever you pick, write it at the top of the report. The template marks the accrual-only accounts, like dues receivable and accounts payable, as optional.

How do the accounts map to your bank statement?

The treasurer's real job is turning bank lines into accounts. Here are generic examples. Your statement will read differently.

Many treasurers file a deposit that pays dues months ahead under 2100 until those months arrive. Ask your CPA how your books should treat it. The template's second sheet has 23 lines like these.

What does a CPA expect to see?

Many CPAs ask for a separate balance for each fund, and reserve cash that matches the reserve bank account. They also look for transfers between funds recorded as transfers, and income split between exempt and non-exempt.

If an association is audited, the CPA may also ask for a schedule of future major repairs and replacements. It lists each component, its remaining life and its replacement cost. A reserve study gives you most of that.

For a small board, the practical step is simple. Hand your CPA the chart before the year starts, not at tax time. Ask what they would change.

How does this work in QuickBooks?

A chart of accounts is what QuickBooks calls its list of accounts. You can type the template's accounts in by hand or import them. Our QuickBooks guide for a small HOA covers setup, costs and when a spreadsheet is enough.

Two points matter for this chart. QuickBooks splits operating and reserve money using classes, which usually need a higher plan. And your CPA may want a different chart, so ask before you build one.

Where GnomeOwner fits

If your board uses GnomeOwner, it works with categories, not a numbered chart. Each bank line arrives with a suggested category, and the treasurer confirms it. Each line is also tagged operating or reserve.

The Financial Report is prepared on a cash basis. It includes a statement of revenues and expenses, budget versus actual, a balance sheet, a reserve fund statement and the Form 1120-H tests. The free spreadsheet does the same job by hand.

Quick answers

What is a chart of accounts? The list of categories an HOA files each deposit and payment under. A small HOA needs about 25.

Do we need a separate reserve account? Keeping reserve money in its own bank account is common practice. Your documents and state law may add rules.

Is reserve interest taxable? The IRS instructions for Form 1120-H list interest on sinking fund amounts as not exempt-function income. Ask your CPA how it applies to your association.

Can we change our chart later? Yes. Ask your CPA first, so this year's report still matches last year's.

Read how to run a self-managed HOA for the wider job. The numbers feed straight into the monthly treasurer report.

---

This guide is general information, not tax or accounting advice. Rules vary by state and by association. Ask your CPA about your situation. Sources: IRS, Instructions for Form 1120-H (irs.gov/instructions/i1120h). Accessed October 2026.