Is your fund accounting solution helping you work smarter, not harder?

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Nettie Reynolds

July 13, 2021

    Ask any CFO, comptroller, or Director of Finance what the central anchor is to their organization or nonprofit and they will answer, “Budget, budget, budget.” In working with so many exemplary institutions, nonprofits and organizations we know there are critical business and budget issues they face every day.

    The importance of budgeting and the budget process in nonprofit and government organizations is the key to continuing and growing the mission in the market. Choosing and using the right fund accounting software to manage all your needs is vital and the right tool can not only help you track your budget but should also reduce manual workload and ensure financial accountability and transparency.

    Gone are the days where stakeholders and grant funders will understand long delays in getting accurate budget reports. Further, without key tracking tools budget issues or variances can go undetected until it’s too late. Fraud can occur more easily without the power of a real-time dashboard view of your budget as well as the ability to drill down into any irregularities and solve them expediently.

    Being able to secure and maintain funding also includes successfully qualifying for grant opportunities. Having a system that can easily pull the reporting you need for audits and for grant funding reports help you qualify for more grant awards and ensure you don’t lose grant funding.

    (Tip: Here is a great resource for searching available government grants.)

    Financial performance:

    Is your current fund accounting solution enabling you to easily demonstrate your financial performance? Are your reports easy to define and produce? Does your audit process feel overwhelming, or do you have a system that offers business rules and financial reporting tools for ease of organizing and preparing for audits more easily?

    Key questions to ask about your current  budget solution to determine if it is helping or hindering the expansion of your mission:

    1. Do you and executive team always have a consistently clear picture of your current budget position?
    2. Do you have integration of budget controls throughout your financial process?
    3. Does your system give you the ability to efficiently manage a distributed budget process?
    4. Does your budget give you the tools to project your future budget position?
    5. Is your budget creation and maintenance process completely offline and exists only in spreadsheets?

    Manual tasks reduce efficiency and cost money.

    Maintaining a budget completely offline can sometimes result in a significant lag between the time an expense is incurred, and the budget impact is known. In fact, extensive off-line or manual work to perform routine budget tasks cost you more money in staff workload and errors. Organizations can be impacted as well by having an accounting solution that is not built specifically for the nonprofit and government market.

    MIP’s lets users see the budget impact of a transaction as it is entered and enforce budget controls to avoid overspending. MIP Fund Accounting solution provides users an integrated tool – not an external add-on, to ensure proximity between budget and actual data. It reduces time spent on costly reconciliations and reports are easy to define and produce for operational efficiency. Let us show you what MIP Fund Accounting solution can accomplish for your organization.

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