RSMUS.comAssociations and membership foundations are distributed by nature. A parent organization oversees and organizes multiple smaller entities, whether those are chapters, locations, teams, or interest groups. There can be countless ways for one of these non-profits to structure itself. But no matter the orientation, associations and membership foundations all share something in common: the need for consolidation reporting when closing the books.
Consolidation reporting combines the financial data from the association or foundation with data from each of the smaller entities to create a single record. This type of reporting is essential for understanding the organization’s overall financial health and performance. However, it’s also complex, sensitive, and time- and labor-intensive as a result. Plus, the more entities that need to be consolidated, the more difficult it becomes.
Another thing that is common among membership groups is having a lean accounting team inside the parent office. Like many nonprofits, staff levels are kept to a minimum, meaning it’s often a small group or just one individual handling consolidations for dozens, even hundreds, of smaller entities. The risk of errors and omissions is high, and stress and burnout are almost inevitable, especially since the end of one consolidation cycle is quickly followed by the beginning of the next.
Sage Intacct solves this problem by replacing manual workloads and spreadsheets with a unified financial management solution. In addition to a full toolkit for accounting and finance tailored to the specific needs of nonprofits like associations and membership foundations, Sage Intacct comes with smart tools for consolidations. It doesn’t just make consolidations easier—it turns them into a powerful tool for tracking, managing, and boosting financial performance that helps these organizations serve their members better than ever before.
Sage Intacct has become a popular tool in the nonprofit world, and this blog helps illustrate why by focusing on consolidation reporting in particular.
Consolidation Reporting in Sage Intacct
With Sage Intacct, each entity can maintain a separate book within a shared chart of accounts for the entire organization. That allows each entity, such as each chapter within an association, to manage its own finances while maintaining a close link to the head office. At the same time, accountants in the parent organization can easily report on individual entities or look at financial factors that apply to multiple entities, such as funds and programs. Visibility extends to all corners of the organization, making consolidations feel effortless.
Sage Intacct automates almost the entire consolidation process, reducing it to a few clicks, which used to take hours of number crunching and data manipulation. The system comes out-of-the-box with pre-built consolidation reports. Users can run their first consolidation almost immediately, or they can create a custom report that matches the exact structure of the multi-entity organization or highlights a specific aspect of financial performance.
The process is further simplified and streamlined by the automatic eliminations that Sage Intacct handles. It removes inter-entity revenues and expenses from the consolidation report, along with inter-entity grants and due to/due from balances, though they remain in the entity books. It does not remove program reporting, fund restrictions, or functional expense allocation, ensuring this context is preserved in the consolidation report.
Recognizing that associations and membership foundations come in many shapes, sizes, and styles, Sage Intacct allows users to widely customize how entities are consolidated, which transactions are eliminated, and what context is kept. There are also options for domestic consolidations in a single currency or global consolidations in multiple currencies. No matter how the process needs to work, Sage Intacct has a solution.
Benefits of Consolidation Reporting in Sage Intacct
Improving consolidations with Sage Intacct has benefits for the entire organization:
- Faster Close: Completing the close faster means less stress and more time that financial professionals can apply to other responsibilities.
- Cleaner Audit Trails: The chart of accounts is always ready for an audit to enhance confidence in the organization and its leadership.
- Board-Ready Reporting: Board members don’t have to wait for information or question the numbers, helping them make better decisions on all matters.
- Minimal Manual Work: Morale and retention improve when accountants can automate tedious tasks and eliminate mistakes.
- Maintain Independent Accounting: Entities can have more freedom and autonomy when their independent books can be easily consolidated with others.
Contact RSM about Sage Intacct
The nonprofit experts at RSM can help associations and member foundations explore what Sage Intacct offers, plan and orchestrate the implementation, and support long-term success. If you’re eager to improve consolidation reporting and take financial management to the next level, contact us about Sage Intacct.
Amanda Kirkpatrick
Amanda Kirkpatrick is a Senior Associate in Business Applications at RSM US LLP, specializing in Sage Intacct implementations. With a strong background in financial systems consulting, Amanda has successfully led and executed numerous projects across diverse industries, including healthcare, energy, education, and non-profit organizations.
