If you manage financials for a government organization, you know how challenging it is to manage funds. Funds usually require you to follow special setup steps within your accounting system to accommodate regulations, restrictions, and limitations. You must assign each fund a unique ledger account that provides revenue, expense, and balance sheet reports. You also have to summarize funds as a whole within your organization.
Challenges of Fund Management
When you manage funds for government organizations, you must complete a series of challenging tasks:
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Transferring balances between accounts can be risky and error prone.
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Failure to adhere to reporting guidelines may reduce the confidence shown toward your organization and could result in substantially lower funding.
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You must follow an increasing number of reporting guidelines. For example, the GASB 34 guideline is an attempt to bring public sector reporting in line with private sector accounting.
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Managing funds that fuel multiple projects requires careful reconciliation, a tedious task with manual accounting.
Microsoft Dynamics offers fund management applications that help make transferring balances between accounts an accurate, seamless process. A comprehensive solution provides these benefits to people who manage multiple funds for government organizations:
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Helps reduce the errors you might make when manually reconciling funds.
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Eliminates the need for you to make manual journal entries.
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Processing is automatic, saving employees time.
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Helps you avoid missed transactions and posting errors.
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Minimizes the need for accounting personnel to know all related accounts.
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Makes reporting easier and report results more accessible, helping ensure reporting guidelines are met on time.
