Keeping an organization's spending aligned with its planned budget—all while remaining compliant with fund and grant policies—is the biggest challenge managers at nonprofits face. After all, any variance can lead to an inadvertent misallocation of scarce resources.
Given that risk, many organizations devote an inordinate amount of time and energy to manually monitoring and managing their spending activities. While generally effective, a more reliable and cost-efficient solution exists.
Nonprofit finance teams can exercise more precise control and eliminate the risk of misdirected spending with automated spend solution from Intacct cloud accounting software.
For example, Intacct can be set up to automatically validate purchasing transactions against predetermined budget benchmarks. This helps ensure funding is routinely directed to where it can have the greatest impact for the organization.
Intacct Spend Management also provides:
Being a cloud-based solution, Intacct eliminates some of the costs related to spend management since it doesn't require dedicated equipment or incur implementation and software-related expenses. Instead, it’s accessed through an annual subscription. Even updates to the solution occur automatically and are immediately accessible, freeing managers from reliance on IT sources and security concerns.
In terms of functionality, Intacct allows managers to track revenues and expenses for all funds, programs and grants. The chart of accounts can reflect real-time reporting which enables managers to quickly determine how well spending decisions serve the organization's goals.
Another added benefit arises from not having to create a new chart of accounts for each grant. This is helpful during audits since it eliminates the need to scour the general ledger accounts when researching transactions. But, the solution also reduces the occurrence of errors since it prevents repetitive entries—across the general ledger, purchasing, accounts payable, order entry, and expense accounts.
Detailed and customized reports can be created for grantors and funders that track revenue, expenditures and costs on a per-grant basis without any assistance from IT. This greatly speeds the process of reporting to boards and committees.
For nonprofits, a spend management solution like Intacct represents a more comprehensive, responsive, and cost-effective solution for keep budgeting and spending risks at bay. To find out what your organization can expect to gain from implementing Intacct, give us a call