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Accounting Software

Reduce Spreadsheet Use and Improve Productivity with the Right Accounting Software

By | Accounting, Accounting Software, Nonprofit | No Comments
person in office at desk with laptop, calculator, and phone with clipboard in hand.

Despite the apparent drawbacks, many organizations continue to rely on spreadsheets for their accounting needs. Spreadsheets are cumbersome to interlink, for example, making it necessary to manually rekey data to produce graphs, charts, and reports using data from two or more spreadsheet-based sources. One error accidentally introduced into a single formula can throw off the entire total and give a false picture of the data. And let’s not forget the time it takes for data entry, formula lookup, and formula entry.

It’s easy to understand why many organizations still use spreadsheets. They’re familiar and bundled into office productivity suites, so the cost is minimal. Also, they can be used by anyone with rudimentary computer skills.

However, given the numerous drawbacks of continuing with spreadsheets and the many benefits of shifting accounting into a modern, computerized system, it makes sense to move to accounting and financial management software for your organization’s accounting needs.

Five Benefits of Moving from Spreadsheets to Software

Every organization can reap enormous benefits from moving away from spreadsheet use and tapping into the power of cloud-based accounting and finance platforms. Five benefits almost all companies experience include:

  1. Greater efficiencies: Every accounting function is easier in an accounting software system. Accounting software enables you to enter checks efficiently and quickly into a digital check register, confirm payment receipts and expenses, and track them against specific accounts. Reports can be run with the click of a button: balance sheet, cash flow statement, unpaid receivables, income statements, and more. Additionally, some software comes with the ability to generate charts and graphs. What used to take you hours will take mere minutes with the right software. Additionally, advances in the use of artificial intelligence (AI) enable workflow automation that saves additional time.
  2. Improved clarity: Spreadsheets make viewing progress towards goals across multiple programs or funding lines difficult. With an accounting program, you can access numerous metrics and track them more easily against Key Performance Indicators (KPIs) and other goals.
  3. Faster and easier reconciliation: If it takes forever to reconcile banking and credit card statements at the end of each period, you’ll find it much easier and faster to do so in a computer program. Both processes are more efficient and make it easy to spot discrepancies in the reconciliation.
  4. Enhanced forecasting: Manual forecasting that relies upon spreadsheets is time-consuming and error prone. Using accounting and financial management software enables more accurate forecasting. It also makes it possible to extend forecasting timelines, which is nearly impossible with spreadsheets.
  5. Time saved: Software enables you to complete tasks in minutes what used to take hours. Reducing spreadsheet reliance immediately saves hours per week that can be spent on other tasks such as budgeting, consulting with program managers on their financial and accounting needs, and more.

Accounting and Financial Software for Modern Nonprofits

Many accounting and financial software packages are on the market today, some explicitly geared to nonprofits. It is recommended that nonprofits avoid “off the shelf” business accounting software packages. Many of these lack the functionality nonprofits need to track revenue and expenses against program lines, for example.

Sage Intacct is a cloud-based accounting and financial software package created specifically for nonprofit organizations. Over 11,000 for-profit and nonprofit companies worldwide use it. It enables fast, accurate accounting, enhanced visibility into KPIs and forecasting, and excellent reporting. Perhaps most importantly, it automates workflows, making it a time saver for a busy accounting department.

There are many more accounting software choices available, and it can be confusing to review and compare them. Working with a consultant who understands nonprofit organizations’ unique needs and challenges is the best way to select the right accounting and financial software package for your needs.

Moving from spreadsheets to software is essential for nonprofits. While it may be tempting to continue using spreadsheets to save money, the time saved by transitioning to an accounting and financial software system is priceless. It’s time saved that can be put towards achieving your mission—and isn’t that worth it?

Welter Consulting

Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact us for more information.

Top 3 Challenges Faced by Nonprofit CFOs

By | Accounting, Accounting Software, Nonprofit | No Comments
woman standing at desk looking down at laptop computer

Nonprofit CFOs face many challenges, but the following three may not be ones that immediately come to mind. We often assume that our own challenges are unique—that no one else suffers from spreadsheet overuse, for example—or other organizations are more efficient than we are. But we can tell you from experience that nonprofit CFOs all face similar challenges. And the solutions to these challenges are similar, too.

Challenge 1: Over Reliance on Spreadsheets

Spreadsheets are everywhere. They are easy to use and come with most office productivity suites. Most accounting and financial professionals know how to use them and are very comfortable with them. They enable nonprofits to get their accounting up and running quickly. We’re not knocking spreadsheets, but if your organization is past the startup phase, it’s time to think beyond spreadsheets and look for a more robust accounting solution.

They are myriad problems with using spreadsheets for complex accounting functions. Problems include:

  • Unless cloud hosted, spreadsheets are single user, meaning that only one person at a time can work with a spreadsheet. They must be emailed after updates.
  • Working with complex financial analysis across multiple spreadsheets can be extremely time-consuming and difficult.
  • Formulas are notoriously finicky—one mistaken input and suddenly the whole sheet is off. Worse, mistakes multiply if copied and pasted, making it very hard to find and fix them.
  • They aren’t secure. You can password protect a spreadsheet in some programs, but they can be shared and accessed easily. A compromised password can make them accessible. A computer virus can make them completely inaccessible. They are very risky.

Solution: Transition Your Team to an Accounting Program

It is vital to transition your team away from spreadsheets as soon as possible. Cloud accounting software made specifically for nonprofit organizations provides the structure and resources needed to handle the complex needs of nonprofit finances.

Sage Intacct is an excellent cloud-based accounting program for nonprofits. It offers a cloud-based solution that requires no special hardware to run. The chart of accounts can handle the often-complex reporting needs of nonprofits, and it includes multiple nonprofit-specific accounting functions, such as grant management, FASB accounting accommodations, and more.

Challenge 2: Reports Take Too Long to Produce

Another challenge many nonprofit CFOs face is producing accurate and timely reports. This challenge often goes together with reliance on spreadsheets which produce only limited reports.

Accurate and timely financial reports enable nonprofit managers to make smart decisions about using organizational resources. Without insight into the finances, managers lack an important piece of information.

The solution is to find a good nonprofit accounting program that enables on demand reports. Flexible, customized reporting would be ideal, since managers can then run the reports they need. Automating your accounting will shift the burden of producing reports from the CFO and enable more self-service reporting.

Challenge 3: Billing mistakes.

Nonprofits using spreadsheets often fail to account for their employees’ time properly. They may under- or over-count billable hours, miss expense reports, and generally struggle to adequately track billable time and projects. This can result in a significant shortfall over time and a huge, missed opportunity.

Using Sage Intacct and/or a time tracking software can help you more accurately track such expenses. And, by aligning staff time with specific programs, you can judge how effective specific programs are and whether such time is being used wisely.

Financial Software for Nonprofits

Although spreadsheets can adequately handle basic accounting, they quickly become inefficient as a nonprofit grows. The recent trend towards cloud accounting software has added additional value to software licenses, making them more affordable than ever. If the challenges outlined in this article resonate with you, we invite you to explore Sage Intacct or other cloud accounting solutions through Welter Consulting.

Welter Consulting

Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact Welter Consulting at 206-605-3113 for more information.

Nonprofits Benefit by Automating Accounts Payable

By | Accounting, Accounting Software, Nonprofit | No Comments

The typical nonprofit accounts payable person spends their day processing invoices, reconciling them to the accounts, and ensuring the bills are paid on time. Manual processes are cumbersome and inefficient.

Areas of inefficiency include:

  1. Paper-intensive data entry process that relies on bills sent via the U.S. mail or electronically retrieved and printed.
  2. Manual data entry of bills into an accounting or spreadsheet program.
  3. Hand-writing checks, signing them, and placing them in an envelope to mail.
  4. Routing physical checks and invoice paperwork to managers for approval.
  5. Reconciling banking statements with accounting programs or spreadsheets.

Each of the five areas of inefficiency can be improved with software that streamlines and automates accounts payable. Such software also closes security gaps that may have occurred due to the pandemic when internal controls were lax given the uncertainty around in-person work. So, if another event occurs that forces the AP person to telecommute, they can still process invoices in a timely manner with a cloud-based system, that runs over the internet, and that can be accessed remotely,

Five Benefits of Automating Accounts Payable

There are many benefits nonprofits receive from automating accounts payable, but the following five are perhaps the most important.

  1. Improved Security

During the pandemic, when much uncertainty remained about who would be in the office on any given day, internal controls at many nonprofits were relaxed. Additionally, nonprofits who did not have cloud systems in place found themselves adding solutions to enable workers to telecommute.

Unfortunately, lax security both with internal controls and digital materials enabled criminals to take advantage of the situation. Nonprofits are always at a high risk of cybercrime since they generally lack a dedicated IT infrastructure to prevent or remediate against attacks.

An automated accounts payable system improves security in many ways. It eliminates time-consuming paper routing of approvals, automating invoice and payment approvals through email which cuts down on delay and potential fraud. It also helps secure the AP system itself against cyberattacks through the added security provided by cloud-based servers and software.

Paper checks can be mostly eliminated, making automatic bank transfer payments and e-checks a simpler, faster solution. These payment methods are also highly secure, ensuring that potential criminals cannot forge signatures on paper checks, for example, to steal funds.

  • Enhances forecasting accuracy

Manual AP processing makes forecasting extremely challenging since cash flow and recorded bank balances may not be entirely up to date. With automated AP processing, the balance shown in the system is accurate, and improves the ability to forecast cash flow, receivables, and payables. It takes some of the uncertainty out of forecasting, which is a huge help during these continuing uncertain times.

  • Transparency into the organization’s finances

With automated AP processing, anyone at your organization logging into the system can view the current state of their budget and payables. This adds a layer of transparency and accountability into the budgeting and payment system that may be more challenging to reach with manual AP processing.

  • Access to accurate data

Organizations that can access and use their financial data can make better decisions around budgeting and expenditures. With manual processes, this information can be difficult to access and utilize. With automated AP systems, reports can be generated quickly to help you utilize the valuable data found in the system.

  •  Easier audit process

The annual audit process is time-consuming enough. Manual accounting practices extend the timeline. Automating AP means faster access to information the auditing team needs, as well as easier access for them if they are auditing remotely (a new trend that arose during the pandemic).

Sage Intacct Automates AP Easily

To automate AP, you need the right software. Sage Intacct easily automates AP and other workflows with no IT support required. It makes working remotely easier, offers excellent security, and improves efficiency throughout the AP process.

With Sage Intaact, your organization can:

  • Add a robust cloud solution to automate AP without costly hardware or infrastructure support
  • Handle complicated fund accounting and grant management easily
  • Segregate, budget, and report on restricted grant funds
  • Comply with strict new audit processes
  • Automate workflows
  • Connect Sage Intacct to other systems to extend and enhance systems and share data

Watch a video demonstration or schedule a demo and consultation with Welter Consulting today. Visit Welter’s Sage Intacct information center for details.

With the right software, AP automation can bring your organization to a whole new level of efficiency. It’s faster, and software such as Sage Intaact makes the process of adding and using the system easier.

Welter Consulting

Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact Welter Consulting at 206-605-3113 for more information.

A New Approach to Accounting Collaboration

By | Accounting, Accounting Software, Nonprofit | No Comments

It seems like the world changed in the blink of an eye. Things we took for granted, like working on-site at a client’s office to conduct an audit, had to be changed. New ways of collaboration were discovered, tested, and refined. Today’s approach to accounting collaboration has changed dramatically.

If your firm still handles client relations as it did five or even three years ago, it’s time to get up to speed on new methods of accounting collaboration. Collaborating with clients and colleagues has moved to new methods, technologies, and resources, and each has its pros and cons. Together, however, they are forming a new way of working together that is meeting with approval from both accountants and their clients.

New Ways of Collecting and Sharing Information

In previous years, clients often dropped off USB memory sticks at their accountant’s office or envelopes full of documents.

Today, new ways of collecting and sharing information have made virtual collaboration easier. For example, many accounting firms are now using secure file transfer protocols to enable clients to upload data directly to their systems.

But what about large data files? Yet another change that’s occurred throughout the accounting world is the need to handle larger data files. Instead of a single general ledger file, organizations and companies may have large, complex data files requiring secure transfers.

This is the time when accounting firms should invest in new, secure technology to facilitate easier data uploads. Ensuring that your clients can collect and share information securely and quickly is essential to fostering good collaboration.

Audits Go Virtual

Another change happening in the accounting world is the shift to virtual audits. Instead of relying upon in-person audits, many accounting firms are now collaborating with their clients through virtual audits.

The success of a virtual audit depends on how easily and transparently information can be shared between accountants and clients. Ensuring that clients can share information securely is essential. Some cloud-based accounting and finance systems offer the ability to share information directly with third-party systems or users. Auditors can be added to a system or, depending on the technology, information may be obtained directly from the organization’s accounting program.

Reliance on Videoconferencing

Collaboration between accounting firms and clients has also changed in the area of meetings. Annual, quarterly, and monthly meetings have mostly shifted to videconferences. This shift makes meetings more convenient but can add complexity when juggling multiple calendars and schedules to find suitable meeting times. Technological hurdles, such as unstable internet signals, can also make videoconferences less effective than in-person meetings.

To make videoconferencing more collaborative, consider using two tools in one, such as a video conference tool with chat function integrated into the software. This enables users to ask spontaneous questions as they would during an in-person meeting without disrupting the flow of conversation.

Two other ways to make videoconferencing more collaborative is using a recording function, which keeps a record of the call that can be shared for future reference or with participants who were unable to attend in person. A transcript can be made from the recording too, either by working with a transcription service through popular tools such as Fiverr or utilizing transcription software such as Otter.ai.

No matter where you turn, the shift towards virtual work is in full swing. Some feel it is long overdue, while others believe that the spontaneity and comradery of working in person is lost. To enhance collaboration with their clients, accountants must use all the resources at their disposal.

Welter Consulting

Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact Welter Consulting at 206-605-3113 for more information.