Challenges of Nonprofit Accounting: How Intacct Can Help

Keeping the books for a nonprofit organization is both demanding and detailed.  Regulations demand accurate, meticulous reporting practices and well-documented expense and cash flow records.  What compounds theses accounting challenge are multiple funds and grants, each with their own unique reporting requirements.

Following are three accounting challenges faced by many nonprofit organizations:

  1. Grant and pledge management.  Grants are received from many sources and it can be challenging to figure out exactly when monies will be collected.  And, with flexible and ill-defined grant management system, nonprofit organization often have difficulty predicting how much money will be collected over specific timeframes.  Pledges are likewise tough to track because they are often received over a multi-year timeframe.  Tracking which pledges have been received and which are outstanding is cumbersome, at best.
  2. Payroll management.  Employees want to be paid on a predictable, regular basis.  However, the payroll function is typically relegated to someone who appears to have “time.”  The often result in irregularity, errors, and an overall mess.
  3. Cash flow management.   Due to the grant and pledge management challenges, nonprofits often have a difficult time accurately predicting cash flows.  Board members and managers often spend a lot of time monitoring receivable levels and encumbered expenses rather than focusing that time on the nonprofit’s primary mission or cause.

Brittenford Systems, an Intacct and Microsoft Dynamics Partner, can help your nonprofit organization integrate grant, pledge, and payroll data for a complete real-time view of your finances, provide holistic reporting to aid in your grant and funding requirements, and automate and streamline critical business processes.  Our solutions can help your organization focus on what really matters: your cause.

By Brian Dietz at Brittenford Systems, a Virginia Intacct Partner

No Comments

Post a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

ERP professionals providing insight and advice for not for profit organizations.