Accounting Software: Trends, Truths & Troubleshooting

On March 25, Kathy Brand, Jim, Snider, and Jonette Mathews of RubinBrown provided the nfpFMA members with much information related to accounting software. Here are some accounting software industry trends they addressed: Web-based software, Improved financial reporting capabilities, HR module additions, and Industry consolidation.

They also discussed useful ways to compare software programs. These included drawing up a needs analysis, evaluating the needs, deciding if a fund accounting software program is necessary, and then searching for and evaluating software programs. Some evaluation criteria are Features & Functionality, Price vs. Overall Cost, Installation, Software Set-up, and the Stability of the software firm offering the software.

Kathy, Jim and Jonette then discussed troubleshooting the software conversion process. Jim recommended we evaluate the chart of accounts and how each segment influences financial reporting capability. He also recommended cleaning up data and getting accounts in balance prior to import, and then checking that all the data did indeed import properly. Finally, the RubinBrown team suggested drawing up a project plan to better manage the entire accounting software conversion process.

Accounting Software: Trends, Truths & Troubleshooting - Topic for March 25, 2008

Join us at our next meeting, Tuesday, March 25 when Jim Snider, Kathy Brand, and Jonette Rodriguez-Mathews of RubinBrown reveal future accounting software trends, offer tips for comparing software programs, and discuss pitfalls related to converting from one accounting software program to another.

990, Is this an IRS Form or What? - Yes, the 990 is indeed an IRS Form

On Tuesday, February 26, 2008, Jen Vacha and Janet Ramey of Brown Smith Wallace presented valuable information about the new 990 form the IRS has developed for 2008. It is 59 pages in its entirety and full of accounting exercises all of us will have great fun doing.

Some areas that may need your attention are Schedule J (from question 23 on Part IV of the 990); Part VII of the 990 (which was formerly Schedule A); and Schedule D, (which is a new schedule and includes the reconciling item lines that were formerly on the basic 990 form).

Schedule J's data must tie back to W-2's and 1099's. Therefore, Schedule J is based on a calendar year, even though all the other information pertaining to the 990 is based on your nonprofit's fiscal year.

Part VII of the 990 also factors into Schedule J, and must tie to W-2's and 1099's.

Schedule D, "Supplemental Financial Statements" is triggered if you answered "Yes" to lines 6, 7, 8, 9, 10, 11 or 12 on Part IV of the 990.

990, Is This an IRS Form or What? - Topic for February 26, 2008

Please join us for our next meeting, February 26 when Jen Vacha and Janet Ramey from Brown, Smith and Wallace walk us through the not-for-profit version of the 1040 - the IRS 990 form. We will learn how to distinguish in-kind goods from in-kind services as well as how to complete the form with the least amount of pain. A definite challenge when tackling IRS forms. See you there.

Allocations Part II - What to do???

Darrell Songer and Allan Larson of Larson Allen, presented Part II of Allocations and Functional Reporting. They focused on how to do cost allocations which generated much discussion with the 23 attendees, who asked questions like how to treat specific administrative costs such as grant writers, accountants and audit costs, Songer and Larson provided these handouts: sample Cost Allocation Plan and the section of the AICPA Not for Profit Audit Guide on cost allocations. But the basic rule of thumb seems to be that if the adminstrative cost would still exist even after a program has been eliminated, then that administrative cost should not be allocated to the program.

Allocations Part II - Topic for January 22, 2008

Please join us at our next meeting for the second part of our allocations discussion with Allan Larson of Larson Allen. We will discuss examples of cost allocation formats as well as expenses that should always be directed toward administration rather than allocated among functions.

A New Year - A New I-64 (Highway 40)

Because we meet each month at the downtown offices of United Way, many of us rely on I-64 to take us to the meetings. Beginning today, that route may no longer be an option for many of us. To help you navigate your way to our meetings during the I-64 re-construction, we've added some rss feeds that provide links to traffic and public transportation updates.

Happy trails!!