Here are four key areas to consider during your search and evaluation of fund accounting software options. We’ll explore each of these topics in more detail in a series of blogs.
- Fund Accounting
- Budgeting and Encumbrances
Let’s first dive into Fund Accounting.
Not all Associations need Fund Accounting, but many of our Association clients do need this functionality to track Funds or Grants.
What are some fund accounting questions to ask during your accounting software evaluation?
- How does the solution handle funds and grants?
- Are you able to have multiple segments or dimensions that allow balancing trial balances?
- Does the solution allow additional segments or dimensions that only need to be designated for revenue and/or expenditures?
- How flexible is the configuration for the offsetting Due To and Due From accounts between funds or grants?
- What controls are in place in the solution to ensure the Due To accounts and Due From accounts are always in balance?
- Can you have specific accounts and/or segments/dimensions that designate how much each fund owes each other fund, individually? For example, in Fund 100, accounts that show Due From Fund 200, Due From Fund 300, for each other fund, rather than just Due From Other Funds in total?
- Can the solution work with funds or grants that each have their own bank account and also with funds or grants that use a combined bank account but need to break down the balance into the portion for each fund or grant?
- How does the solution handle funds or grants that run on program years that are not the same as your organization’s fiscal year or span a period longer than a year?
- What is the process for adding a new fund or grant to the chart of accounts or segments/dimensions?
Once you understand how the solution can be configured and used to maintain transactions and accounts by fund or grant, then you’re ready explore the financial and reporting tool and evaluate its ability to accomplish your reporting needs for all the users of your accounting data. We’ll help you get a good look at reporting in our next blog in this series.
Let the experts at Sikich help you analyze your accounting requirements and find a software solution that fits your Association’s needs. Please contact us at any time!