Sage Intacct, a cloud-based Enterprise Resource Planning (ERP) and accounting software, has released many great new features that non-profits everywhere will find very helpful.
New accounting rules have prompted non-profits to report expenses by both their function (programs, management and general, fundraising), and by the nature or type of expense (salaries, rent, etc). Due to this, it is important for non-profits to have allocation rules and methods in place to manage indirect costs and provide accurate functional expense break downs on its financial statements. Some of the allocation methodologies can be complex, and manual processes can create inefficiencies and human error.
One of the new and exciting updates recently released by Sage Intacct is its Dynamic Allocations module. Through this module you can easily set up allocation assignments that are adjusted whenever the information source changes. For instance, you can have rules allocating costs based on the payroll breakdown for that period. The rules change automatically when the payroll changes the following period.
Image Source: Sage Intacct
However, budget managers might not want to see all allocated expenses on their regular reports as it can create confusion, while the Finance team might want to forecast different allocations sources and calculations to compare various cost drivers.
This is why Intacct also released a new feature, and a complement to Dynamics Allocations, called User Defined Books. This module keeps different allocation calculations in separate “books” that can be included or excluded from the overall reporting process. Thanks to these new updates, managers can now simply check a box to include the allocation books or not, and compare results side by side, making everyone’s lives easier!
Now Finance can spend more time on oversight, analysis and strategy. For more information please reach out to Kiwi Partners, a Sage Intacct SIAP partners, Lisa Toback and Kate Koraia.