Leverage Automation to Address New Nonprofit Accounting Guidelines
The nonprofit environment offers a unique set of challenges when it comes to financial management. Keeping up with an ever-changing compliance landscape is one of those challenges. FASB recently issued Accounting Standards Updates that represent the most significant change to nonprofit accounting in several years. Whether you’ve already implemented the new standards, or you’re still trying to figure out how they impact your accounting approach, you need the right tools to be compliant and manage revenue correctly under these new guidelines. Automation is one of those tools.
The updates require nonprofits to assess how they track some types of revenue and to determine where they fall on the deferred revenue spectrum. This often results in manual tracking of complex funding streams with cumbersome, error-prone spreadsheets. Leveraging automation in your accounting approach with a solution like Sage Intacct means that you can automatically track multiple revenue streams in a way that is compliant with the FASB nonprofit guidelines.
Disclosure requirements change under the new guidelines, with an increased focus on including qualitative as well as quantitative information to give a complete picture of your organization’s financial health. More extensive qualitative disclosures give you the opportunity to provide a more in-depth and holistic view of your nonprofit. But addressing these increased disclosure requirements can also be time consuming and labor intensive without the benefits of automation. A cloud-based financial solution can store your quantitative and qualitative information in one central location. And Sage Intacct’s disclosure dashboards allow you to display qualitative disclosure information beneath the corresponding quantitative data – without having to manually reconcile input from disparate sources.
The new guidelines are intended to simplify financial reports for external stakeholders, but you still need to have access to a comprehensive, detailed view of your organization’s financial situation. Sage Intacct includes a suite of pre-built reports that address the new standards, allowing you to be fully compliant more quickly, and freeing your finance department to focus on other, more strategic initiatives. At the same time, you have real-time access to the type of detailed data and reporting your internal finance executives need to make critical decisions.
Automating your accounting functions with Sage Intacct can help you address these new challenges and more by streamlining your nonprofit finances. Call MicroAccounting today at 855-876-3773 to find out whether Sage Intacct is the right tool for your nonprofit organization.