Has your nonprofit been experiencing a lot of growth or have you started adding funding through new grants? It’s great, right? You’re able to better support your community and have more resources to help fulfill your mission. But, with more funding, comes a few more complexities.
A lot of smaller nonprofits go for the fast and affordable off-the-shelf financial solutions, and when you’re just starting out, that probably works just fine. Then your nonprofit grows and gains multiple funding sources that commercial financial software just can’t handle, given nonprofits’ special tracking and reporting needs.
Does this sound familiar? A lot of nonprofits try to make do, adding spreadsheets, or trying to customize or add new features to their software. All of these approaches serve as Band-Aids, at best! But, when do you know you’ve reached the point of no return? Ask yourself the following questions:
1. Am I able to create reports for varying fiscal years?
2. Can I track all inflows and outflows by fund?
3. Can I manage restrictions based on my funding sources?
4. Does my current financial solution incorporate nonprofit-specific accounting rules?
5. Can I easily tailor reports for each funding source?
6. Do I have a complete audit trail?
If you answered “no” to any of these questions, you can find yourself facing serious consequences, including loss of funding or tax-exempt status. It’s no secret moving all of your data and implementing a new system sounds scary, but there comes a point in time when you just can’t continue on with multiple spreadsheets or face another audit without proper reporting.
The right fund accounting software could greatly benefit your organization. MIP Fund Accounting™ has more than 30 years in the marketplace providing trusted solutions to nonprofit organizations. The system is rooted in experience while providing modern solutions for a changing nonprofit landscape.
Learn more about how it can reduce your finance-related headaches and boost productivity.