There are numerous simple accounting software applications that function properly for a time. Data entry might get laborious over time, and you may not obtain the necessary information. This indicates that your company is prepared to upgrade to a more advanced cash accounting system. Here are five indications that your non-profit organization is ready to transition to financial accounting software.
Do You Need to Retrieve Fund Information From Many Databases?
Are you tired of repeatedly entering the same information into several databases? Using a straightforward accounting system can make this work onerous. Numerous fund accounting solutions allow storing all money in a single database. Thus, you can report on each fund separately while sharing setup information, such as vendors, customers, etc., without having to configure it in each fund individually.
Your Organization’s Use of Terminology and Reporting Needs To Be Corrected
Non-profit organizations frequently employ terms that are not included in the core programs, such as foundation, company, department, and profit center. In addition, reporting in core systems is built for basic business transactions and does not provide charitable organizations with specialized reporting and budgeting capabilities. For instance, a statement of revenues and expenses is more appropriate for a non-profit than a statement of profits and losses. By offering software users clear and easily accessible tools, you may ensure that they comprehend what they are doing and boost the system’s productivity and precision.
Department Managers Need To Receive The Necessary Information
Do managers desire nonexistent departmental data, such as accounting transactions or payroll? Is it challenging to monitor sales and expenses? Core systems frequently need help tracking the granular data that fund accounting software provides. By utilizing fund accounting software, you can track income and expenditures and payroll by department, location, and project.
You Require An Improved Audit Trail
Some of the most basic accounting systems do not provide a solid audit trail, which increases the possibility of information falsification. Numerous fund accounting solutions provide a trustworthy audit trail that documents the transactional history.
It would help if you had greater budgeting flexibility
If you are like the majority of charitable organizations, your initial budget is in constant flux. Numerous individuals need the ability to compare financial figures to the original version or one or more budget adjustments. A reliable fund accounting system will allow you to record both the initial budget and the changes, allowing you to compare them to the version of your choosing.
Moving from a simple accounting system to a fund accounting system enables more precise tracking, minimizes the chance of error, gives detailed reports to those who require them, and ensures that the information your non-profit organization requires is always available.