How can nonprofits simplify grant tracking from proposal to reporting?

For many nonprofits, grants are essential to funding programs, supporting long-term initiatives and advancing the mission. But managing those grants can quickly become one of the most complex responsibilities for finance teams. 

Each grant may come with its own budget structure, reporting format, compliance requirements, reimbursement rules, and deadlines. When those details are tracked across spreadsheets, shared drives, and disconnected systems, it becomes harder to maintain visibility and control. 

In a past Sikich webinar, most attendees said they still rely on spreadsheets to track grants. That is not surprising. Spreadsheets are flexible and familiar, but they also create manual work, duplicate entry, and risk when grant activity becomes more complex. 

The better approach is to manage the full grant lifecycle in one connected system, from proposal to award, month-end processing, funder reporting, and closeout. 

Watch the webinar 

In this session from our “Less chaos, more clarity” webinar series, Sikich and Sylogist discussed how nonprofits can improve grant tracking, reduce manual work, and gain better visibility into grant activity for finance teams, program leaders, and funders using Microsoft Dynamics 365 Business Central and Sylogist Mission ERP. 

Watch the full recording to see how nonprofits can manage proposals, awards, compliance requirements, revenue recognition, indirect cost recovery, reimbursement invoicing, and reporting in one connected solution. 

Why grant tracking is more than a finance task 

Grant tracking is not just about recording revenue and expenses. It is about making sure the organization can meet funder expectations, protect cash flow, maintain program funding, support audits, demonstrate accountability, and maximize resources available to advance the mission.

When grant tracking is weak, nonprofits may face: 

• Delayed reimbursement requests 
• Missed reporting deadlines 
• Inconsistent documentation 
• Audit findings 
• Difficulty proving compliance with funder requirements 
• Staff time pulled away from mission-focused work 

For many organizations, the issue is not a lack of effort. It is that finance teams are being asked to manage complex grant requirements with tools that were not built for the full grant lifecycle. 

Start with the proposal 

Effective grant management begins before the award is received. 

A modern grant management solution allows nonprofits to create a proposal record that captures key information from the beginning, including the funder, grant type, proposed amount, expected start and end dates, reporting structure, supporting documents, and budget details. 

This helps create a single source of truth before funding is awarded. If the proposal becomes an award, the information can carry forward instead of being recreated in a new spreadsheet or separate system. 

That continuity matters. It reduces duplicate work, preserves institutional knowledge and helps finance teams maintain a clear history of what was proposed, what was awarded, and what changed along the way. 

Build controls into the award 

Once a grant is awarded, the organization needs to manage the specific restrictions and requirements tied to that funding. Many nonprofits manage a mix of restricted and unrestricted funding, making it critical to track expenditures against grant-specific requirements and funding restrictions.

Those requirements may include: 

• Eligible programs or cost centers 
• Allowable general ledger accounts 
• Approved spending dates 
• Revenue recognition rules 
• Indirect cost recovery rules 
• Reimbursement invoicing rules 
• Reporting milestones 
• Audit requirements 
• Funder approval requirements 

When these rules live in spreadsheets or in someone’s memory, the organization is more exposed to errors. A new team member may post an expense to the wrong program. A transaction may fall outside the grant period. A reporting milestone may be missed. 

With grant management capabilities built into the ERP, these rules can be embedded directly into the award record. That helps prevent avoidable errors, supports stronger financial controls, and gives teams more confidence in the data. 

Automate month-end grant processing 

Month-end can be especially time-consuming for nonprofits that manage multiple grants. 

Finance teams may need to calculate indirect cost recovery, recognize revenue, prepare reimbursement invoices and create journal entries for each award. If those calculations are handled manually, the process can become slow, inconsistent, and dependent on spreadsheet formulas. 

With Microsoft Dynamics 365 Business Central and Sylogist Mission ERP, nonprofits can define rules for each award and use those rules to automate common month-end tasks. 

The system can help calculate indirect cost recovery, apply revenue recognition rules, generate reimbursement invoices, and prepare journal entries based on posted activity in the general ledger. 

Instead of rebuilding calculations each month, finance teams can review system-generated results and post with greater consistency. 

Make funder reporting easier 

Every funder may want information presented differently. 

One funder may require reporting by salaries, subawards, other costs, and indirect costs. Another may require personnel, benefits, travel, and consulting expenses. When reporting structures vary across grants, finance teams often spend hours exporting data, reformatting reports and checking formulas in Excel. 

A connected grant management solution allows organizations to align each award with the funder’s reporting requirements from the start. That means reports can be generated in the format the funder expects without as much manual manipulation. 

The result is faster reporting, fewer spreadsheet workarounds, and better visibility into grant performance. 

Still using Microsoft Dynamics GP? Start with our free tool. 

If your nonprofit is still running Microsoft Dynamics GP, this is a good time to evaluate how grant management fits into your future ERP strategy. 

Many nonprofit organizations using GP rely on spreadsheets, custom reports, or third-party solutions to manage grant tracking and reporting. Moving to Microsoft Dynamics 365 Business Central creates an opportunity to modernize those processes and build a more connected approach to financial management. 

Sikich is one of a select group of Microsoft partners with access to a GP to Business Central Assessment Tool. This tool analyzes your current GP environment and helps identify what your organization should consider before moving to Business Central. 

Our free GP to Business Central Assessment Tool can help provide insight into: 

• Current GP setup and configuration 
• Modules, ISVs and integrations in use 
• Data quality considerations 
• Potential issues that could affect the move to Business Central 
• Recommended next steps for planning your transition 

The goal is to give your team practical information before making decisions. Rather than starting with assumptions, you can understand where your system stands today and what it may take to move forward. 

Start your free GP to Business Central Migration Assessment today!

Assessment Tool

Sikich helps nonprofits align technology with mission outcomes 

Technology alone does not solve process challenges. A new system can help, but only if it is implemented with your organization’s goals, reporting requirements and day-to-day realities in mind. 

Sikich works with nonprofits to understand their unique funding, compliance, and operational requirements before recommending a path forward. That includes evaluating current processes, identifying pain points, advising on the right solution and helping your team define the outcomes you want to achieve. 

Our goal is not to simply deliver software and leave you to figure out the rest. We partner with your organization through planning, implementation, optimization, and ongoing support so your finance team has the tools, processes and guidance needed to manage grants with greater clarity and confidence. 

Is Business Central right for you?

If Business Central is the right fit, we’ll help you get there. If it isn’t, we’ll tell you that too.

Talk with a Sikich ERP advisor

Part 1: How nonprofits can close month-end books with confidence – Sikich 

Part 2: How nonprofits can eliminate Excel workarounds with D365 Business Central finance reporting – Sikich 

Part 3: How can nonprofits simplify grant tracking from proposal to reporting? (You’re here) 

Part 4: How nonprofits can improve procurement with Dynamics 365 Business Central (Coming soon) 

Part 5: How nonprofits can build budgets without the back and forth in Dynamics 365 Business Central (Coming soon) 

Part 6: How nonprofits can bring fundraising and finance together in Dynamics 365 Business Central (Coming soon)