Many nonprofits use an accounting approach called fund accounting. This method focuses on the use of resources more than profitability, with transparency and accountability at its core. It provides the framework for organizations to tell their stories and remain accountable to their stakeholders.
Fund accounting also requires specific industry expertise, knowledge and experience to bridge the gap between tracking the use of funds and generating GAAP financial statements that focus on the changes in net assets.
When choosing a fund accounting software solution, finding one that’s was made with fund accounting in mind is key. The following are just a few of the benefits of using software tailored to the needs of fund accounting.
1) Improve decision making
Users enjoy access to real-time information such as expenses, sub-awards, obligations; all presented in easy-to-understand displays. Dashboards show graphs and visualizations of awards and spending.
2) Increase efficiency
Productivity goes up compared to maintaining separate information “silos”; everyone has access to the same information, reducing “back and forth” communications that waste time.
3) Streamline processes
Get a comprehensive picture, from start to finish, of your nonprofit’s entire process and eliminate redundant and potentially conflicting data issues.
4) Automate and simplify grant compliance
Improve grant management by linking all relevant financial activity to a particular segment. This will ensure your compliance improve and periodic reconciliation is more efficient.
5) Access data in the format you need
Quickly pull the data you need in Excel, PDF, and other formats.
6) Provide user-defined multi-currency viewing
Your nonprofit may need to view and report grant data in different currencies, depending on your multi-national operational needs. This feature is particularly helpful for multi-national humanitarian organizations conducting operations worldwide.
Serenic Navigator by Sylogist was developed to meet the unique accounting needs of nonprofits, NGOs, K-12 school districts, government organizations, and other public sector organizations. To learn more about Serenic Navigator and the benefits of fund accounting software, download the infographic: Fund Accounting Software: Essential Requirements & Tips for Choosing the Right Software.