Tracking by Funding Source

Fund accounting software allows you to track funding sources in a way that is useful to you, by department, program, grant, profit center, and more. Since information is tracked this way, reports can be pulled and viewed for each source, and the data is easily understood.

Advanced Budgeting

Fund accounting software provides budgeting tools so you are more accurate in your budget projections and reporting. You have the ability to budget by fund and by department, giving department heads or managers the information they need to quickly compare their actual spending to the budget.

Customized Reporting

Because non-profits have different reporting requirements than other organizations or businesses, it’s important to have a customized reporting tool that allows you to edit and save reports tailored to your specific needs.

Tracking by Funding Source

Fund accounting software allows you to track funding sources in a way that is useful to you, by department, program, grant, profit center, and more. Since information is tracked this way, reports can be pulled and viewed for each source, and the data is easily understood.

Advanced Budgeting

Fund accounting software provides budgeting tools so you are more accurate in your budget projections and reporting. You have the ability to budget by fund and by department, giving department heads or managers the information they need to quickly compare their actual spending to the budget.

Customized Reporting

Because non-profits have different reporting requirements than other organizations or businesses, it’s important to have a customized reporting tool that allows you to edit and save reports tailored to your specific needs.

There are many basic accounting programs that work great for a period of time. After awhile, data entry can become cumbersome and you may not be able to pull the information you need. These are signs your organization may be ready to move on to more advanced fund accounting software. Here are five signs your nonprofit is ready to move from a basic application to fund accounting software.

You have to pull fund information from several different databases.

Are you tired of inputting information several times and into many different databases? This can become work intensive when you are using a basic accounting software system. Many fund accounting systems allow you to maintain all of your funds in the same database. This still allows you to report on each fund separately, but allows for sharing some setup information such as vendors, customers, and more, without having to set them up in each fund.

Terminology and reports seem inappropriate for your nonprofit.

Nonprofits customarily deal with specific terminology which basic programs do not address, such as fund vs. company, department vs. profit center. Also, reporting in basic systems is intended for general business and does not provide the reporting and budgeting capabilities specific to nonprofits. For instance, the Statement of Revenue and Expenditures is more suited to a nonprofit than an income statement. By providing your software users the tools they can understand and relate to, you can ensure they really understand what they are doing, increasing system performance and accuracy.

Department heads are not getting the information they need.

Are managers requesting department details that are not available, whether for accounting transactions or payroll? Is it difficult to track revenues and expenditures? Basic systems cannot typically handle the detailed information tracking needs provided by fund accounting software. By moving to fund accounting software, you gain the ability to track revenues and expenditures, as well as payroll by department, location and project.

You want a better audit trail.

Are you worried about the possibility of fraudulent measures by personnel within your accounting system? Some of the more basic accounting systems do not offer a solid audit trail, leaving you open to corrupt information. Many fund accounting systems will offer a sound audit trail, where the history of each and every transaction is recorded.

You need more budgeting flexibility.

If you are like most nonprofit organizations, the budget you start with goes through changes. Many people want to view financial statements against the original, or have the choice of comparing it against one or all of the revised budget versions. A good fund accounting system allows you to keep your original budget intact, as well as revised versions, so you can compare to the version of your choice.

Moving from your basic accounting system to a nonprofit fund accounting system can provide more detailed tracking, reduced margin for error, detailed reports for those who need them, and peace of mind, knowing that the information your nonprofit needs is always available when you need it.

Most organizations use past history and trends to determine their budget. With a limited number of funds that are predetermined, the goal of the budget is to cover operational costs as well as plan for future capital expenditures. Without comprehensive fund accounting and payroll tools, it can be difficult to organize and manage the budget efficiently. Here are five tips on maintaining a better budget.

1. Manage budget by department and by fund. Some programs only allow budget management by fund. However, the ability to also manage by department gives quick access to a wealth of information about each department. Being able to see budget data by department and by fund can give department heads or managers the information they need to quickly compare their actual spending to the budget.
2. Unlimited funds. Be sure whatever system you are using allows for an unlimited number of fund accounts, ensuring that the system can still handle all of your organization’s budgeting needs. Each organization is different and you may want to add additional funds down the line.
3. Customizable reporting. Your organization clearly wants to see your data in a way that is most useful to you - complete and accurate. With a system that you can customize, you will be able to view reports with information specific to your reporting needs.
4. Integrated payroll. If your pay data is not integrated with your accounting data, you may not easily be able to get a clear view of your budget and where it stands. By integrating the two, you will streamline your payroll processes and pay information can accurately be viewed within financial reports.
5. Copy budget from previous year(s). With the ability to copy and edit a budget from a previous year, you can save significant time setting up your budgets each year. You will also be more confident in your budget, knowing it was based on a budget system that had already been in place the prior year.

With the above budgeting tips, you will find the budgeting process much simpler to set up and manage!