We've read and written quite a bit about how quickly accounting regulations, processes, and technology are changing in the private sector, but many of those trends also apply to nonprofits and government entities whose accounting revolves around funds. Fund accounting is different from for-profit or commercial accounting. It encompasses most aspects of commercial accounting but goes beyond those requirements in both form and function. Learn about five important trends we see in the world of fund accounting:
Breaking Free from Outdated Systems
Nonprofits have at times been slow to move away from outdated systems like Excel or QuickBooks. As familiar and comfortable as these technologies are, their capabilities are limited. Organizations are increasingly upgrading to cloud-based, enterprise-class solutions for fund accounting. Breaking free from older systems eliminates headaches and setbacks while making advanced accounting accessible.
To make the broadest possible impact, mission-based organizations are actively expanding their footprint. But trying to manage a growing complex nonprofit organization is a time- and labor-intensive process with lots of opportunity for error, especially for organizations with outdated accounting software and a reliance on spreadsheets. Part of what is motivating these organizations to upgrade en masse is the need to get better at managing multiple legal entities, programs, projects, missions, ministries, locations, and, of course, funds.
Choosing the Cloud First
Nonprofits are not always as tech driven as their for-profit counterparts, but their need for effective and affordable technology is still high. That is why these organizations are choosing cloud-based solutions at higher rates than on-premises deployments. The cloud empowers organizations to access extensive tech resources at a fraction of the cost and with minimal hassle. Organizations get the technology they need without having to divert resources away from their main mission.
Spending on Scalability
Recent research into fund accounting has shown that the more funds an organization manages the more it spends on technology. What this implies is that technology is a tool for both managing complexity and sustaining growth. Organizations with a lot of funds probably anticipate having many more. That means they require a solution that can instantly and easily scale up to match their evolving needs.
Upgrading Faith-Based Organizations
Faith-based organizations are growing in size and complexity, which requires them to take new approaches to accounting and oversight. In order to manage larger funds and extended projects, these organizations are seeking out better fund accounting solutions. Technology is driving the nonprofit industry as whole, but the effects are particularly pronounced with churches and other faith-based organizations.
Better fund accounting leads to stronger and more sustainable organizations. Building a better future is the priority, but effective accounting facilitates that mission. That is why organizations of all sizes are choosing Sage Intacct as their financial management solution.
Unlike the alternatives, Sage Intacct is easy to implement, affordable to operate, and intuitive to use yet truly powerful, intelligent, and insightful. It's an all-in-one fund accounting solution that empowers non-profits and to drive their own destiny. Set your organization up for success in 2018 and beyond by contacting AcctTwo.