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AcctTwo Blog

Is Your Nonprofit Accounting Chart of Accounts Helping You Meet Your Mission?

On the surface, setting up your nonprofit accounting chart of accounts would seem to be a fairly straightforward process, but in fact, there is a lot of strategy that goes into it — or that should go into it — to save you a lot of work and headaches down the road.

The Chart organizes one of your most valuable assets: your operational and financial data. When set up correctly, your chart will enable you to see trends, issues, and opportunities within your day-to-day operational and financial data. Because of this, a well-organized Chart will make it easier for you to make better, faster and more informed decisions to move your organization forward. So, the time you spend evaluating your Chart will typically be among the most worthwhile time you’ll spend on your organization. Really!

Topics: accounting software chart of accounts Not-for-Profit and Faith-Based

Chart of Accounts - the Power of Modern Accounting Applications

The Old Way: a Mind-Boggling Chart of Accounts

In the olden days, and I mean in fairly recent memory, a company or organization's chart of accounts could be very complex and difficult to manage. If the company required that transactions be coded for multiple locations, departments, or projects, the number of codes required for each transaction could become overwhelming, and opened up the accounting system to user error and a lot of man hours for data entry and data correction. To track the accounts for 3 locations, 5 departments, and 5 projects, you’d need 75 account code combinations. Cloud-based financial applications today have simplified and error-corrected this process by tracking much of this information behind the scenes.

Topics: Blog accounting software Intacct chart of accounts Cloud Computing / SaaS Awareness