Why Fund Accounting Software program Beats Spreadsheets

You’ve been grant purchasing for a while now, however are you ready for what’s subsequent when you begin to obtain them? Many grants include vital—and detailed—compliance necessities. To fulfill these necessities, you’ll want to have the ability to efficiently observe and handle your grants and successfully report on the way you allotted these funds.

If you’re a grant-funded group, it is going to be necessary to handle spending restrictions and meet reporting necessities. You’ll want to suppose forward about having the ability to simply seize grant info, arrange duties and deadlines, after which run correct studies at any time.

Fund accounting methods with grant administration may help you from starting to finish if you’re a grant-funded group—or need to be. Listed below are three ways in which your fund accounting system can help your grant administration wants.

1. Monitoring: Lower Out the Spreadsheets!

The extra handbook knowledge entry you do, the extra errors can creep into your accounting system. So how will you reduce these errors and create knowledge entry insurance policies on your customers? When you guessed not counting on Excel spreadsheets to handle your grants, you might be right!

With a fund accounting software program system designed for nonprofits, you’ll be able to totally observe all of your grants, particularly restricted grants, in a single place.

It’s important to trace your grant restrictions correctly as a result of they’re decided by the funder. When you can’t present that you just spent the cash as requested, you in all probability don’t have a shot at extra grants from this funder—or they could withhold a last cost relying on the place you might be within the grant cycle.

If you’re managing your grants in Excel, how will you assure your spreadsheet has been up to date and the restrictions have been adopted precisely? Are you able to say with confidence the place your grant spreadsheets are being saved and who has entry to them? What if a donor or stakeholder needs fast info on a grant?

Managing your grants inside your fund accounting system will permit you to finances by grant, report on finances vs actuals, and evaluation grant exercise, so you’ll be able to rapidly and simply reply these questions.

2. Suppose Forward with Reporting Capabilities

How are you at the moment reporting in your grants? Or, if you’re simply now beginning your journey to grant funding, how do you intend to report on the way you used the grant funds?

Irrespective of your mission, grant reporting will assist drive success by guaranteeing compliance and precisely reporting on these awards. Fund accounting software program can permit you to precisely curate grant studies to trace restrictions, set budgets, and audit grant awards. These capabilities are essential for conserving financials updated and adhering to compliance necessities.

Think about you had studies constructed to indicate you a snapshot of your grant awards at any second? Higher but, these studies have been arrange on a schedule to run robotically. You’ll be able to even format the studies to satisfy the funder’s particular necessities, so that you aren’t reformatting them for every replace.

There are infinite potentialities as you scale your grant awards. You’ll be able to view previous grant data and exercise, report on grant finances vs actuals or construct grant particular studies to indicate stakeholders or the neighborhood the place these awards have made essentially the most affect.

3. Perceive Your Oblique Prices

Monitoring and allocating your oblique prices is without doubt one of the most tedious features of grant purposes and reporting. Some grants could include plenty of stipulations about what working prices they’ll fund—and the way a lot. Having a fund accounting resolution constructed for nonprofits will permit you to doc these grant spending guidelines that can assist you later calculate reimbursements.

Manually getting into grant info on spreadsheets can solely go up to now. That is the place monitoring oblique prices straight on a grant document will assure you might be precisely calculating reimbursements and staying on prime of billing. Oblique prices should not at all times readily recognized with a grant, so having the ability to observe them inside detailed grant data will permit you and your group to be extra environment friendly than a spreadsheet. Spreadsheets open your knowledge to the chance for human error with monitoring and calculations. Monitoring your oblique prices in a fund accounting system could make what could be a tedious and irritating course of extra streamlined and simpler to audit. 

Able to sort out the duties of grants?

It’s simple to push grant purposes to the again burner while you aren’t assured about assembly the necessities post-award. Managing them could be a daunting process. However let your fund accounting system make the method of managing grants simpler. It’s necessary to put money into an answer that can help your mission totally and permit you to observe and handle grant awards simply and precisely.

The easiest way to drive success in direction of your mission is to have the ability to observe your funding—together with grant awards, report on them precisely, and handle the complicated conditions that come your method. A spreadsheet can solely get your group up to now and hinders your capability to simply accept extra complicated reward awards. You want an answer that can help restricted grants, complicated reimbursement with oblique prices, and drive a profitable audit.

To study extra about how a fund accounting system like Blackbaud Monetary Edge NXT can prevent time and headache when managing your grants, try this on-demand webinar, “Monetary Edge NXT: Highlight Sequence: Normal Ledger Tasks and Grants.”

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