Is It Time for Your Nonprofit to Redesign its Chart of Accounts?
Has your Chart of Accounts become unwieldy? One sign that it’s time for a new accounting system is that your chart of accounts includes pages and pages of account combinations.
Chaos versus control
How does this happen? It happens gradually over time. You’ve increased your programs and have received new grants. Each grant comes with specific restrictions and reporting requirements from the funder. Gifts from major donors may also come with restrictions.
Is it time to redesign your chart of accounts for your nonprofit? Consider this, an organization with five funds, four grants, three programs and one restriction could end up with 60 account combinations of natural account number for “printing” as depicted in the image below.
A solution that provides clarity
The good news is that you have a vibrant and expanding organization. You have multiple sources of funding, including grants, funds, programs, and projects. With that comes a growing audience of stakeholders to whom you need report: government and private funders, Board members, the executive team, program managers, and possibly members or constituents. All of these parties are interested in how funds are being spent, program effectiveness and the financial health of the organization.
Sage Intacct Dimensional Reporting
Streamlining the chart of accounting with Sage Intacct Dimension is a benefit nonprofit finance directors value the most. The dimensional structure of Intacct helps CFOs and finance directors simplify reporting and tracking of key areas of the organization, including fund and grant management.
You will enjoy a clear and comprehensive view of your financial data directly from the system giving you the most accurate information as you track funds, programs, expenses and access real-time reporting for data-driven decisions.
Is It Time to Redesign Your Chart of Accounts for Your Nonprofit?
Michaud Accounting Solutions is happy to offer access to the on-demand presentation ‘Not Your Mother’s Chart of Accounts’ which will show you Sage Intacct Dimensions can simplify even the most complex account combination requirements.