One of the greatest challenges every nonprofit faces is fund allocation and management. One core accounting tool you’ll want to use is a subledger system. Fortunately, Nonprofit Salesforce users have several key subledger options including Accounting Seed and the latest Salesforce Accounting Subledger!
What Does a Subledger Do for Nonprofits?
A subledger is a balance sheet that contains precise subsets of financial transactions. A subledger uses a many-to-one correlation to record source transactions and entries. This then serves as a self-contained accounting unit holding transaction details needed for a summarized journal entry recording the net accounting change in a general ledger.
Besides making bulk transactions faster, subledger systems help make data more transparent and easier to track and validate. Allocating relevant entries to avoid confusion is also very useful for complying with federal tax and reporting rules.
Connectivity is Key for Subledgers
Finding a subledger system that is flexible and seamlessly connected to relevant business data associated with the transactions is critical. This data connectivity ensures both accurate reporting and efficient workflow.
Your overall donor management solution should be able to fluidly share the data with your accounts receivable and payable subledgers for clear audit trails and consistent info. Besides tracking donation amounts and overall cash flow, data connectivity helps you capitalize on the organizational benefits subledgers bring. For nonprofits, Salesforce offers two core options for a unique subledger for your organization.
Subledger Options for Nonprofits on Salesforce Users
Salesforce nonprofits have two core options for securing an accounting subledger on the platform. However, one of the overarching benefits Salesforce offers nonprofits is the Nonprofit Success Pack (NPSP). Let’s look here first.
Monitoring, organizing, and optimizing the variables powering your nonprofit leads to growth and greater outreach for your mission. NPSP is specially designed for nonprofits to control the specific dimensions of their organization in real-time. The use of Nonprofit Cloud in NPSP has helped nonprofits achieve over a 24% donor retention and over 89% improvement in achieving mission objectives!
All your data and tools are in one location through NPSP. This means no more data re-entry. No more time wasted looking for information you need. Start a process in one tool on NPSP and resume the work in the appropriate, connected app like your accounting tool. From here there are two core options for nonprofits to have access to a subledger. The latest option is the straightforward Accounting Subledger.
Salesforce Accounting Subledger
This feature can seamlessly connect to NPSP. Instead of having to build a subledger off platform in another solution, you can keep your subledger right alongside NPSP as an add-on. Here are some of the top features:
- Fundraising Architecture
Create custom objects and fields specifically for tracking donors and their donations.
- NPSP Data Import and Gift Entry
Add large batches of data, tens of thousands of records, at once. (Example: With NPSP Data Importer, you can enter groups of contacts and organizations while also using Gift Entry to enter collections of gifts and payments.)
- Customizable Rollups
Generate a rollup valuable data such as a donor’s total lifetime giving, totals allocated to a specific fund, and more. This makes your subledger and finances highly visible in order for you to prioritize goals and create strong strategies!
- Easy Ledger Entries
The Accounting Subledger automatically creates and manages a separate set of data records, called Ledger Entries. They’re designed to help you interface with your accounting systems.
As your organization grows, users can upgrade this subledger to acquire additional features. However, you also have options for how you use and deploy the nonprofit subledger. The Accounting Subledger not only connects with NPSP, but also other Salesforce accounting solutions. Namely, Accounting Seed.
Accounting Seed: Nonprofit Accounting Subledger and More!
Fully connected with both NPSP and the Salesforce Accounting Subledger, Accounting Seed offers additional options for you to have a nonprofit subledger. Remember, Accounting Seed is a full-scale accounting system, not just a subledger. You have all of the options for debits and credits allocations and customized reporting as with the accounting subledger, but more.
Accounting Seed’s additional features give you more options for donation management and fund accounting. Here are some core features along with a subledger optimized for nonprofits:
- General Ledger
All of the donations, funds, fund allocation data, and more you’ve started within NPSP connects to the Accounting Seed general ledger automatically.
Clear batch bank transactions and facilitate quick reconciliations through minimal data entry, all on a single platform in the same way your donations are settled by your bank.
- Financial Reporting
Enjoy real-time, customizable financial and management reports to guide strategies that secure key benchmarks. Breeze through 990s and tax reports with drill-down and audit trail features.
You have the choice to use Accounting Seed just with NPSP, or to use it in conjunction with the Salesforce Nonprofit Accounting Subledger. However, when you use the full Accounting Seed solution, the flexibility allows you to scale the platform as you grow. There’s no need to ‘upgrade’ with Accounting Seed because our solution is constantly up-to-date with the latest technology.