HOA Accounts Receivable : Where is my payment?

Krishna YalamanchiHOA

Every Home Owners Association collects dues from residents and pays vendors and this process existed for more than 30 years, this process is time consuming, expensive and error prone. Today we are radically changing payment processing for Vendors with AI & Automation.

What is the payments lifecycle?
1. HOA Vendor sends an email or uploads the invoice to the Portal
2. Board approves payment in a board meeting or via email and some boards via a payment portal or recurring rules
3. Payment sent to the vendor via USPS by the Management company or the board

Re-Imagining Vendor Payments with Automation

  1. Automated Vendor notification via Text or Email or both to Upload an Invoice

2. Automatic Data reading from Invoices to eliminate human error and reduce costs

Once the Invoice is uploaded, it is automatically scanned to identify 20+ fields to identify grouped into 3 categories

Invoice data read via AI – Invoice #, Invoice Date, Amount due, Payment Due date, Vendor Name and address who submitted the invoice, HOA they are billing to and other fields
Background job then kicks off to validate how many approvals are needed Eg. 1 out of 3 Board members or 2 out of 3 board members and this is based on an annual review or invoice amount. Eg. An invoice approval rule Monthly contract of $6427.00 needs 1 out of 3 board members since there is an annual contract or $3500 Invoice from the same vendor needs majority approval which is 2 out of 3 board members since this is an out of cycle invoice.

3.Automated Unified Messaging for Board & Vendor Communications

HOA Alchemy Invoice ApprovalHOA ALCHEMY Automated text messages for Accounts PayableHOA Alchemy Check cashed
Once the payment is approved CheckIssuing our payment Provider creates a payment and releases it to the vendor and track changes until the check or Digital Payment(ACH) is Cashed by the vendor.

Summary
Your current management company charges you roughly $150 / hour and if the check approval took 5 minutes it costs the HOA $12.5 to approve a payment and for 6 invoices / month the annual cost is $900. With the Alchemy based AI enabled automation you save $750/year and a step into the future.