Government Sector, Nonprofit Accounting, Technology
3 Ways Fund Accounting Solutions Benefit the Public Sector
In the public sector government accounting needs are different than those of private organizations. Government accounting needs specialized software, in order to, have better compliance, financial transparency for the Government Accounting Standards Boards (GASB), and to help manage many different budgets in a municipality.
Keep in mind, while a private sector business relies on its own revenue to support itself, a public sector organization needs to prove its validity and fund usage. Government processes are complex, and they require a close eye on all fund allocation to operate correctly.
The benefits of a well-designed accounting software for municipalities, offer reduced stress, in regard to, adhering to government regulations, audits and reporting of data.
Every town is different, but let’s take a moment and look at The Town of Rising Sun’s move from manual workarounds, decentralized systems and staffing constraints to seamless integration of all critical financials, and databases .
The town’s goal was to scale and sustain their financial future for business and residents. In only 18 months from researching an accounting software program to implementing MIP’s fund accounting solution they achieved just this goal.
After a decade of outsourcing all city accounting processes, the city successfully implemented an easy to well-supported accounting system. Through this journey they were able to reduce costs and reliance on outside accounting professionals, and have improved data integration, and greater reporting flexibility. Those are just some of the benefits one municipality gained.
The intricate functionality required for nonprofit and government accounting is a primary reason to change accounting systems. An accounting system designed specifically for nonprofits and municipalities must handle complex financial management issues, including the need to track and report on multiple funding sources across different or multiple fiscal years, as well as tracking the performance of multiple programs, departments, and functions.
Here are 3 more ways a dedicated fund accounting solution serves the government sector:
- Provides tracking and reporting on individual funds from multiple sources across varying budget periods.
- Built for the needs for compliance and the GASB financial transparency needs.
- Intuitive software that helps keep you compliant, helps you manage your budget and aids in using your government funding more effectively.
Read the full Town of Rising Sun’s success story.
MIP Fund Accounting offers a solution that takes into consideration the specific needs of government entities, and it includes all the tools needed for tracking and reporting on individual funds from multiple sources across varying budget periods.