December 11, 2015 | Categories DonorPerfect Update

Reconcile Your Fundraising and Accounting Systems in 3 Steps

Avoid the boardroom nightmare of explaining why development and accounting numbers don’t seem to match. Reconciling these numbers isn’t exactly a no-brainer, but it can be done.

Step 1. Use fundraising software that fully integrates with your accounting system.

While double-entry can ensure both development and accounting reflect donations rolling in, why do twice the work when smart fundraising software can do it for you?DonorPerfect’s Accounting Interface Module enables nonprofits to integrate DonorPerfect with the latest installed versions of QuickBooks® Pro and Premier®.

Here are the benefits of integrating QuickBooks with DonorPerfect:

• Gift transactions are summarized by General Ledger Codes and automatically posted to QuickBooks.

• You’ll save time and reduce errors because there’s no need to enter data twice. All donations you receive instantly appear in donor records and seamlessly reflect in QuickBooks accounting records.

• DonorPerfect creates journal entries and transfers transaction details to QuickBooks.

• You can use QuickBooks to manage expenses, financial statements, and non-donor revenue while benefiting from DonorPerfect’s smart features for managing donor information, gifts, and pledges.

Step 2. Modify reports to paint a clear picture of what’s going on in development and accounting.

Take the mystery out of mismatched numbers between development and accounting by labeling them with codes that tell the report reader what’s going on. Present development and accounting numbers side-by-side and add a notes column to clarify any discrepancies. When you reconcile development and accounting records monthly, filling in the notes column is an easy task that will pay off big in the board room during presentations.

Step 3. Ramp up communication between your development and accounting departments.

Communication is key to ensuring that records are reconciled between development and accounting. Without clear, consistent communication, not even software can prevent you from ending up with unreconciled amounts. From establishing clear-cut standards around cutoff dates to ensuring you’re recording donations in the same way, constant communication allows each team to know what’s happening and how it’s being handled.

For example, if development receives a conditional gift from a corporation, they’ll record it even if the condition isn’t yet met. As a general accounting rule, that amount won’t be reflected in accounting records. So if development and accounting aren’t communicating how to handle conditional gifts, it’s likely the numbers won’t match and the discrepancy won’t be explained in the notes column of the report.