Before your HOA pays a vendor invoice, check four things: the bill matches the agreement, the work being billed was actually delivered, the right person approved it, and the payment instructions haven't changed. If any of those is off, it's not a routine invoice anymore. Stop and sort it out before money leaves the account.
This applies to HOA and condo boards, whether you self-manage or work with a manager. Condo associations often fall under different state laws, and your own governing documents set who can approve and release payments, so check those before you borrow anyone else's process.
Key Takeaways
- Pay against the agreement, not the invoice. Pull the contract or accepted quote and compare scope, price and payment terms line by line.
- Confirm the work before you pay for it. The person closest to the project says what was delivered, and whether anything is still outstanding.
- Recurring bills need checking too. A monthly invoice can keep arriving long after the service stopped matching the contract.
- Ask what supports every surprise charge. What changed, who approved it, and which part of the agreement covers it?
- One owner, one second check. A named project contact handles the review. Another authorized person checks it before payment.
- Never trust new bank details on sight. Call the vendor at a number you already have, not the one in the message.
Why should an HOA board review every vendor invoice?
You wouldn't sign a restaurant check without looking at it. You might be paying for the lobster at the next table.
Vendor invoices work the same way, except the check is bigger and it's your neighbors' money. Most vendors bill honestly. Mistakes still happen: a deposit that never got credited, a service period billed twice, an extra nobody approved. And a small volunteer board is exactly where those slip through, because everyone assumes someone else looked.
The fix isn't an accounting department. It's a short, repeatable review that a volunteer can actually keep up with.
What should you compare the invoice against?
The agreement that authorized the work. Pull the accepted quote, signed contract or other written approval, plus any approved changes. Then compare the invoice against it:
- Vendor name, invoice number, service dates and amount
- Scope, quantities, rates and the math on the total
- Deposits, credits or earlier payments that should be subtracted
- Whether this invoice or service period has already been paid
Then figure out what this payment covers. A deposit, a milestone payment, a monthly service bill and a final invoice each need different checks. Some contracts call for payment before all the work is done. Check what the agreement actually says instead of applying a blanket rule like "nothing gets paid until the whole job is finished."
Can't find the agreement? Ask for it. Don't rebuild the terms from memory, and don't assume the invoice describes everything that was approved.
How do you confirm the work was actually done?
Ask the person closest to the project. Did the vendor finish the work on this invoice? Does it meet the agreed scope and quality? Was it on schedule? Is anything still open?
For visible work, photos and a dated completion note go a long way. Technical work is different. A photo can't prove hidden work was done right or that a repair is safe. For that, you want the professional's report, an inspection, or the sign-off the job requires.
Here's how it goes sideways. The clubhouse bathroom remodel invoice comes in for the full job. One fixture is still missing. If someone marks the project "complete" to keep things moving, the person approving payment never knows. The right move: flag the gap, check what the contract says about payment, and talk to the vendor.
One caution. A delay or a defect doesn't automatically give the board the right to hold back whatever amount it picks. Document the concern, check the agreement, and get qualified advice when payment rights are in dispute. And move quickly. A question nobody follows up on can turn into a late payment the association didn't need to make.
Should you review recurring vendor bills, like landscaping?
Yes. The monthly landscaping invoice is a gym membership. It's very easy to keep paying for something nobody is checking on.
Compare the service period and charges with the current contract, then ask whether the promised service actually showed up. If leaf removal is included, how often is it supposed to happen? If seasonal flowers are included, were they planted? Is irrigation work part of the deal or billed separately? Don't assume every landscaping contract covers the same things. Read yours.
I'd also review every recurring contract once a year, well before any renewal or cancellation-notice deadline. Look for scheduled price increases, changed terms and how to exit. A contract can get more expensive without adding a single service. That may be allowed by the agreement, but the board still needs to see it coming and plan for it.
Compare the new annual cost with your budget and with what you're getting. If it no longer fits, use the renewal window to renegotiate or shop around. Don't find out about the price bump when the bigger invoice lands.
What should a board do about an unexpected charge on an invoice?
Ask a specific question: what changed, when was it approved, and which part of the agreement supports it?
"While we were in there" may be the most expensive phrase in property maintenance. Sometimes the extra work was necessary. Sometimes nobody approved it. Either way, an unexplained difference deserves an explanation. That's not an accusation. It's your job.
Ask for an itemized breakdown of the added work or materials. Compare it with any change order, written approval or pricing terms in the contract. If extra work was done, find out who asked for it and whether that person had the authority to approve the cost.
Read the estimate's fine print, too, not just the total. It may cover material price changes, allowances, excluded work or conditions that trigger a revised price. Those terms can matter a lot when the final bill comes in higher than the estimate.
If the board and the vendor disagree about who should eat an overage, bring in the association's attorney before taking a position that could turn into a bigger fight. An estimate being exceeded doesn't automatically make either side responsible. Keep the explanation and the board's decision with the invoice.
Who on the HOA board should approve vendor invoices?
One named person per project, plus a second set of eyes.
On a three-person board, handing a task to "the board" usually means everyone waits for someone else. So name a point of contact for each contract or project: the landscaping contract, the gate repair, the pool service. That person gathers the agreement, confirms the work and sorts out questions with the vendor.
Then, before money goes out, another authorized person checks that the invoice matches the records and that the required approval is documented. Think of it as two keys on the same lockbox. It's a practical safeguard, not a legal requirement every association shares.
Your governing documents, any applicable requirements and your adopted financial controls decide who may approve and release payments. Coordinating a project doesn't give someone spending authority. Make the handoff clear, and name a backup for when a volunteer is out of town.
What if a vendor asks you to send payment to a new bank account?
Stop and verify it separately, even if the invoice amount is right.
A familiar name and a professional-looking invoice do not verify changed bank details. The FBI warns that business email compromise schemes can make fraudulent payment requests look like they come from a business you already know.
So call the vendor at a number you already have on file from a trusted record, never the number in the change request. Confirm the change with a contact you already know before you update anything. Be extra suspicious of any message pushing you to act right now.
Once you've verified it, get written confirmation through the usual channel and keep the updated invoice on file. An email, text or invoice by itself doesn't prove the new instructions are real. Record who verified the change and when, and have the payment reviewer check that it happened.
If you think money has already gone out to a fraudster, call the association's bank immediately and report it to the FBI’s Internet Crime Complaint Center.
How should an HOA keep vendor payment records?
So the next board can follow them without calling you.
Once an invoice is approved and paid, keep these together: the agreement, the work confirmation, any approved changes, the review record and the payment confirmation. Record the payment date and reference number. That way, when a reminder notice shows up from the vendor, nobody pays it twice.
Vendor Invoice Review Checklist
Use this alongside your association's payment rules and the specific contract. It's a review aid, not a universal legal or accounting policy.
- Identify the invoice, vendor, service period, amount and due date
- Locate the accepted agreement and approved changes; identify the billing stage or milestone
- Compare scope, quantities, rates and totals; account for deposits, credits and prior payments
- Have the project contact confirm the billed work, agreed quality and any outstanding items
- For recurring service, check contracted frequency and inclusions; review renewal and price-change terms
- Resolve unexpected charges with supporting detail, authorization and the relevant contract terms
- Confirm required approval and get a second review under the association's controls
- Verify changed payment instructions by calling a trusted number; document the result
- Keep supporting records and payment confirmation; mark the invoice paid once payment is confirmed
Keep a short review record for each invoice: project contact, reviewer, approval date, any open question and who owns it, and the payment reference. Keep actual bank details in a restricted financial record, never on a shared checklist.
Frequently Asked Questions
What should an HOA check before paying a vendor invoice?
Compare the invoice with the signed agreement and approved changes, confirm the billed work was delivered, check the math and any credits or prior payments, confirm the right person approved it, and verify any change in payment instructions before paying.
Should an HOA pay an invoice if the work isn't finished?
It depends on the contract. Some agreements call for deposits or milestone payments before the work is complete. Check what this invoice covers and what the agreement says. If billed work is incomplete or defective, document it, talk to the vendor and get qualified advice before withholding payment.
Who should approve vendor payments for an HOA?
Your governing documents and adopted financial controls decide that. A practical setup is one named project contact who reviews the invoice and a second authorized person who checks it before payment goes out.
How can an HOA avoid paying the same invoice twice?
Keep the agreement, review record and payment confirmation together, and record the payment date and reference number. Before paying, check whether that invoice number or service period has already been paid.
What should an HOA do if a vendor changes its bank account details?
Treat it as a fraud risk until verified. Call the vendor at a number you already have on file, not one from the change request. Confirm with a known contact, get written confirmation, and document who verified it and when.
How often should an HOA review vendor contracts?
At least once a year for recurring services, and well before any renewal or cancellation-notice deadline. Look for price increases, changed terms and exit provisions, and compare the cost with your budget.
Does this apply to condo associations?
Yes. The same review steps work for condo boards. Condo associations often fall under different state laws, and your own documents set who can approve and release payments, so check those first.
Where Solume fits
Solume brings vendor information and maintenance history into one place, helping the board keep its work organized. The board still needs a clear invoice-review process and an authorized payment decision. Ask during a demo how your association’s supporting records and payment workflow would be handled. You can see how Solume handles vendor management here.
Want to see it with your own process? Book a demo and bring one vendor invoice you’ve had to chase down. Ask how Solume could fit your board’s process.
By Joe Braun, Co-Founder and CEO of Solume
