The Benefits of Modernizing Your Fund Accounting Software
Having the right fund accounting software is vital for the modern-day nonprofit. Many nonprofits find themselves in the same situation week after week, having to pull all of their data from their accounting systems and dump it into a spreadsheet to create their reports. This process needs to be repeated time and time again so your organization can receive its new grants, and, at the end of the year, the complicated process of budgeting can be taken care of.
However, there is a better way to take care of fund management. A modern fund accounting system can offer a nonprofit numerous benefits, something that can be important not just for the well-being of the nonprofit but also for the countless individuals that the nonprofit impacts through its mission. Of course, there are many things to think about when considering an upgrade to a modernized fund accounting software. This is why knowing the many benefits this kind of system can provide can be a vital factor in helping a nonprofit decide whether an upgrade is right for them and their fund management team. With all that in mind, let’s take a look at how modernizing your fund accounting software can take your nonprofit to the next level, whether you have a faith-based mission, you work in social services, your nonprofit is focused on offering health services, or you have another type of organization.
Let’s face it. Most nonprofits simply do not have enough hands on deck, regardless of their size. It can be even more challenging to find individuals to handle difficult tasks such as fund management, which can be time-consuming and require special skills. Modernizing your fund accounting software can make it much faster and easier to take care of these challenging but vital tasks, as it makes it faster to import vital data between documents and to prepare other critical work for your team. With the right software, many of your manual processes can become a thing of the past, allowing your team to focus on other important tasks.
Additionally, modernizing your nonprofit accounting software can help reduce potential errors that can cost even more time to fix. While it may seem minor in the grand scheme of things, reducing your financial tasks’ complexity can make a tremendous amount of difference. Among the many things this can do is allow a smaller number of people to take care of a greater number of tasks, something that can be important when you have a limited amount of time and money to take care of fund management.
One of the greater challenges that nonprofits sometimes face is uncertainty with how funds are being spent. This can be incredibly difficult when it comes to real-time reporting if you are using older accounting methods. In this case, decision-makers must wait until reports are drawn up before making important decisions regarding the way funds are used. However, with modernized software, it is much easier to see at a glance key details regarding important information about your funds and grants, allocations, and much more. This can give your nonprofit improved visibility about things such as which of its programs are in need of additional funding and even which types of donors it is most successful with. All of this information can be incredibly important. It can lead your nonprofit to greater success once you can access it freely and see everything that is happening with your organization.
Better Compliance and Controls
Among the many important things to note is that you must keep up with several things as a nonprofit to ensure your organization remains compliant with government requirements. Additionally, as a nonprofit, you will generally be more successful if you are transparent with how your donors’ money is being allocated and used. A modernized fund accounting system will give you the ability to keep track of your funds so you can better track where funds are going and, in turn, remain compliant and transparent with your funds in all areas. Additionally, these modernized systems have the security necessary so that only those who have the right clearance can access your financial information. This ensures that only those who need to know specific financial details about your organization can see that information at any given time.
Perhaps the greatest of the benefits that modernizing your fund accounting system can provide is an improved focus on your mission. When you can worry less about the everyday details such as fund management, you can pay more attention to the big picture. Using improved and modernized fund accounting software makes it easier to see what is going on in your organization, so you can take care of the things you need. From using the new time you have to take care of important tasks to redirecting the money you are saving to other vital parts of your mission, there are many things that you can do once you have modernized your fund management software, from quickly inputting data to seeing what is happening with your organization at just a glance.
If you are considering upgrading and modernizing your own fund management system, now may be the right time to do so. An upgrade can make it substantially easier to take care of your everyday fund management tasks and ensure you can cut down on the time it takes to get everything done, from filling out everyday accounting paperwork to filling out the forms for funds and grants.
Contact us today to request a demo.
Written by: Bill Dean