Using a Nonprofit Accounting System that Works for You
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This webinar discusses how a nonprofit accounting system can help nonprofits track donor-restricted contributions, allocate expenses to programs and grants, create customized reports for funders, and other essential nonprofit accounting tasks. The presenter demonstrates the Abila MIP nonprofit accounting solution and how it meets requirements for fund accounting, standard financial reports, performance tracking, and other needs. Attendees are invited to ask questions during the Q&A portion at the end.
Using a Nonprofit Accounting System that Works for You
- 1. Live Webinar: Webinar Audio: You can dial the telephone numbers locat headphones ed on your webinar panel. Or listen in using your headphones or computer speakers. Welcome! Live Webinar: Using a Nonprofit Accounting System that Works for You Webinar Audio: You can dial the telephone numbers located on your webinar panel. Or listen in using your headphones or computer speakers.
- 2. Today’s Presenter Jane Houle | Net@Work Nonprofit Solutions Consulting Manager
- 3. Webinar Details • Presentation is roughly 50 minutes • All phone lines are muted • We will have about 10 minutes for questions after the presentation. Please type your questions in the box located at the bottom of your webinar panel.
- 4. 180+ Business Technology Architects and Consultants IT Road Mapping & Strategic Planning Business Process Review Ecosystem BI, Analytics & Reporting Cloud & IT Managed Services ERP/ Accounting Web Development & e-Commerce Sister Company Payment Processing SWYPE Sister Company CRM & Marketing Automation HRMS/ Employer Solutions Document Management Nonprofit Solutions Managed Print Services Sister Company Net@Work Overview
- 5. Does your organization need to: • Track donor restricted contributions and comply with FASB • Track performance of a program or grant • Create reports to span fiscal years • Create specific reports for each funding source • Budget and report on multiple data elements • Record expenses to multiple programs or grants directly and/or indirectly Do all of this in the accounting system, not in Excel! Why a Nonprofit Specific Accounting Solution?
- 6. Track Donor Restricted Revenue and How it is Spent • Major donations and grants are commonly given with a set of specific and unique restrictions. The associated funds are either “With Donor Restricted" or “Without Donor Restrictions". • Failure to demonstrate that donor restricted funds have been spent accordingly can have serious organizational consequences, including termination of executives, loss of funding, and worst case - the loss of tax-exempt status. Solutions that are built specifically for fund accounting (such as Abila MIP Fund Accounting ) are designed to help nonprofits meet tracking and reporting requirements.
- 7. Standard Reports for Audit • Statement of Functional Expense • Statement of Activities • Statement of Financial Position • Trial Balance • AP Ledger • AR Ledger • New FASB NFP Reporting Changes in 2018 from ASU 2016-14
- 8. Track Performance of a Program or Grant • All accounting systems can record a revenue or expense but do you need more detail? • Many systems can include a “class” or “sub-account”, but does this create apples and oranges? • Program • Grant • Location • Fund • Other?
- 9. Create Reports to Span Fiscal Years • Grant years and fiscal years are not always the same • Do you need to run two reports and add them up? • Is there an issue with pulling revenue and expense for closed fiscal periods?
- 10. Create Specific Reports for Funders • Do your funders accept your monthly financial reports or do they have a required format? • Can you easily filter to only the revenue and expenses for that funder? • Does the funder require you to report on cash balance form the funding source? • Can you budget and report on multiple data elements?
- 11. Record Allocation of Indirect Expenses for Grants • Can you assign direct expenses to the appropriate programs? • Can you allocate indirect expenses to the appropriate programs? • Do you need to use Excel to create allocation entries? • Do you have a federally approved indirect cost rate? • Creating a federally approved cost allocation plan
- 12. Can your System Meet Nonprofit Requirements? • Set up specific security rights by user to ensure separation of duties • Set up segment level security if you need to restrict access to certain programs, grants, etc… • Do you need to report on encumbered amounts committed through purchase orders in addition to expenses? • Do you track grant receivables in Excel out of your accounting system?
- 13. Let’s Look at Abila MIP •Into MIP!
- 14. Please type in your questions Any Questions?
- 15. Thank You For Attending! Jane Houle | Net@Work Nonprofit Solutions Consulting Manager Email: jhoule@netatwork.com Phone: 312-651-0364 800-719-3307 www.netatwork.com netatwork.com/blog Net@Work YouTube Follow us on Twitter: @netatwork_corp Follow Net@Work on LinkedIn Follow Net@Work on Google+ Follow Net@Work on Facebook Connect with us
Editor's Notes
- #3: Relatively new to Net@Work but not the nonprofit world. 20 year of experience including as a controller at a nonprofit and an interim CFO.
- #6: Start out with What reports can help you with your audit? What features in the software can help you with your audit?
- #7: Start out with What reports can help you with your audit? What features in the software can help you with your audit?
- #9: Start out with What reports can help you with your audit? What features in the software can help you with your audit?
- #10: Start out with What reports can help you with your audit? What features in the software can help you with your audit?
- #11: Start out with What reports can help you with your audit? What features in the software can help you with your audit?
- #12: Start out with What reports can help you with your audit? What features in the software can help you with your audit?
- #13: Start out with What reports can help you with your audit? What features in the software can help you with your audit?
- #16: Problems with Outsourced Payroll when it comes Audit Time! Nothing happens quickly Often takes forever to get a supplemental check Charges for simple reports that are different from what the outsourced PR company normally provide are exorbitant They give you a price to get you on ---- but it goes up exponentially when you need more than what they initially provided It takes bunches of time to get a complex entry into your system Potential for error in that transfer of the entry Typically, they can’t track the dollars as close as needed for the federal grants