WHAT IS TRUE FUND ACCOUNTING™?
A true fund accounting™ system is a comprehensive, inherent, and purpose-built technology designed to meet the unique needs of nonprofit organizations’ financial infrastructures. It meets the complex fund tracking and flexible reporting requirements vital to a nonprofit’s continued ability to grow and serve its community.
- Purpose-built by and for nonprofit professionals
- Represented by multidimensional charts of accounts
- Visible and understandable to all stakeholders at all levels
- Easily integrated with other mission-critical systems
- Supported by highly knowledgeable representatives
True fund accounting™ software allows for nonprofit financial professionals to adapt to each funding stream’s unique conditions, which is vital when funding sources have diverse and arduous requirements.
Using a true fund accounting™ system, nonprofit professionals can easily keep track of the complexities of multiple donation and grant sources spread over numerous projects and with varying fiscal periods, while accommodating new grants and funding sources as their organizations grow.
It’s not uncommon, for example, for nonprofits to operate multiple projects and programs, funded by numerous and widely varying sources. It’s an environment in which off-the-shelf, small business accounting software simply isn’t adequate, By comparison, a true fund accounting™ system contains actual accounting controls, so users can’t take risks or make mistakes. Yet, it’s flexible enough to adapt to what’s needed in any given environment.
Additionally, its unique tracking and reporting functionality is crucial, primarily because funders – from federal agencies to individual donors – are demanding transparency and accountability. With true fund accounting™, nonprofit financial professionals can adapt coding for very specific tracking and reporting – all the way down to the pencils they use.
True fund accounting™ software is designed from the ground up for the reporting and coding complexities of the nonprofit and municipal accounting worlds – it’s not a repurposed or compromised version of for-profit software.