Nonprofit revenue recognition standards are constantly changing, and Sage Intacct has released a new feature to help not-for-profit organizations like yours keep up. In this post, I’ll introduce you to Sage Intacct’s revenue recognition for nonprofits and tell you why it could be a total game changer for your organization.
It’s no secret that nonprofits face many challenges when it comes to recognizing their revenue. Having to decide whether or not a source of funds is or is not revenue is not always straightforward. Is it a contribution or an exchange transaction? Conditional or unconditional? Promise or intention? The list goes on, and it’s enough to make your head spin. Regardless, as accounting rules get more stringent, it’s even more important for non-for-profits to track revenue accurately.
While the most recent FASB Accounting Standards Update gives clearer guidelines to help nonprofits recognize and classify different types of revenue, executing these tasks manually can be a challenge. These new rules for exchange and nonexchange transactions are effective immediately and nonprofits must be willing and able to adjust their accounting processes accordingly. Help!
Sage Intacct is Ready to Make Nonprofit Revenue Recognition Easier
Last month, Sage Intacct released revenue recognition for nonprofits. While this revenue recognition subscription has been available on the for-profit side of Sage Intacct for years, this version is designed specifically to streamline, centralize, and automate revenue recognition for nonprofits. The feature will integrate directly into your existing Sage Intacct workflows. Here are a few of the recognition methods the tool will support.
Let’s say your organization receives a conditional grant and that you need to complete certain milestones before the grant revenue is recognized. Sage Intacct’s revenue recognition feature will allow you to manage your grant project and revenue recognition schedules in one easy-to-use dashboard.
If you find yourself manually navigating the Straight-line recognition method, get ready to save some serious time and headache. This feature is super helpful for organizations who receive annual payments that can’t fully be recognized until a year-long membership is complete.
Sage Intacct’s event-based revenue recognition is helpful for nonprofits who regularly host fundraisers that require ticket sale payments in advance. The system is extremely flexible and gives you the power to set the revenue recognition schedule on your terms.
Here’s Why the Launch Matters for Nonprofits
Not only will revenue recognition from Sage Intacct help nonprofits stay compliant, it will also enable them to save time and stress. Not all revenue must be reported through revenue recognition, and Sage Intacct can can help you automate the entire process.
By ditching the Excel spreadsheets, nonprofits can spend more time focusing on their mission and less time stressing over possible penalties due to inaccurate revenue recognition methods. By keeping all of your recognized revenue in one system, you can also avoid the nasty aftermath of losing the accounting employee who handles the processes manually.
Why Choose Sage Intacct and RSM?
In my opinion, one of the best things about Sage Intacct is their commitment to staying ahead of upcoming accounting rules and regulations. It’s typically the first software to implement and launch solutions to help businesses stay compliant and running smoothly.
At RSM, we follow this same type of protocol by quickly becoming experts in each feature and module that Sage Intacct releases. We are passionate about helping nonprofits succeed and have made it our mission to stay on top of new regulations so you can stay focused on your business. Our team takes the time to understand your unique reporting requirements and will implement new features accordingly.
To learn more about Sage Intacct’s revenue recognition for nonprofits and how RSM can help you implement it quickly, get in touch with our team of experts. We can’t wait to learn more about your unique nonprofit needs.