Accountability of resources holds the key to the success of any nonprofit organization. This lies at the core of fund accounting. Quite similar to commercial enterprises, nonprofits often function in a complicated financial and legal scenario. Fund accounting, consequently often gets complicated if not managed efficiently. Cloud ERP solutions have successfully risen to the challenge of nonprofit accounting. Offering a range of functionalities, cloud-based ERP software has steered many organizations towards successful financial management.
Three Fundamental Accounting Management Hurdles for Non-Profits
1. Restricted funds management is an equally tricky task to accomplish. By law, nonprofits are prohibited from co-mingling funds. Funds need to be allocated to specific programs for which they were granted. Tied to restricted fund management is cost allocation. To ensure reimbursement, costs need to be tracked and allocated correctly. This renders the process more complex, involving complicated calculations.
2. As organizations grow, grant management tends to get complicated. Grants need to be properly managed with detailed records of receivable and expenditures. This process becomes quite complex when there are multiple grants to be tracked.
3. Payroll management could also prove to be difficult for nonprofits in the absence of skilled personnel. Most often outsourcing is not an option as it is adds to overhead costs.
ERP Software: Key to Efficient Nonprofit Financial Management.
Nonprofits that have adopted accounting software are successfully managing finances including funds. Particularly, cloud powered ERP solutions are gaining popularity among nonprofits, which have demonstrated prowess in managing restricted funds and complex cost calculations.
Two core advantages of cloud based nonprofit ERP are automation and mobility. Automation eliminates manual data entry needs, which enables your organization to reduce headcount. Additionally, you can access critical data anywhere and anytime, using any smart device. Grant tracking and reporting becomes significantly easier with nonprofit ERP. You can track and monitor multiple grants individually. Grant reporting and management reporting are also easily accomplished with state-of-the-art nonprofit ERP software.
Acumatica Powered NonProfitPlus Offers a Complete ERP Package to Nonprofits
Acumatica dominates the Cloud ERP space. NonProfitPlus, built on Acumatica xRP platform is engineered to cater to the specific needs of nonprofits. Just like commercial enterprises, nonprofits function in a complex financial environment. They are mandated by law to follow strict fund reporting guidelines. Acumatica nonprofit ERP solution has been designed keeping in mind these specific requirements. The solution offers the following accounting modules: Fund Accounting, Encumbrance Accounting, Grant Management, Restricted Funds Management, Budget Verification, Volunteer Management, Board Management and Audit Trail.