https://www.sikich.com

Looking for a Cloud-Based Accounting Solution for Your Association?

Selena Elledge

Aug 25 2022

2 min read

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
Reporting
Allocations
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!

This publication contains general information only and Sikich is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or any other professional advice or services. This publication is not a substitute for such professional advice or services, nor should you use it as a basis for any decision, action or omission that may affect you or your business. Before making any decision, taking any action or omitting an action that may affect you or your business, you should consult a qualified professional advisor. In addition, this publication may contain certain content generated by an artificial intelligence (AI) language model. You acknowledge that Sikich shall not be responsible for any loss sustained by you or any person who relies on this publication.

About the Author

Selena Elledge

Selena is a Director in Sikich's Technology practice specializing with accounting software. Anytime a client brings a problem to her, she immediately start formulating possible solutions. Selena enjoys brainstorming the options with the client to help the client determine the best solution.