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- Fund Accounting
- Who it's for
- Grant-funded nonprofits
Grant-funded nonprofits
A grant-funded nonprofit needs a way to explain why a cost belongs to a fund and how it moved through the books. Start with the organization that holds the payable, the partner invoice and the linked restriction record. The restriction's fund name, effective date, available amount and decision help the Controller judge eligibility. The bill's coded lines and supporting file explain the actual expense.
How Fund Accounting is set up for you
Grant expense review
Link the restriction record to the payable before the Controller approves the bill. Preserve the decision date and revision when an item is rejected.
Payable control
Use the accounting document queue to separate draft, pending, approved and disputed bills. An approved fund decision remains distinct from an approved bill.
Cash follow-through
Schedule and release the related payment, then compare its bank reference with external evidence before reconciliation.
A grant-funded nonprofit needs a way to explain why a cost belongs to a fund and how it moved through the books. Start with the organization that holds the payable, the partner invoice and the linked restriction record. The restriction's fund name, effective date, available amount and decision help the Controller judge eligibility. The bill's coded lines and supporting file explain the actual expense.
Choose one grant fund and one legal organization for the pilot. Bring a routine partner bill and a bill that the restriction should reject. The AP Specialist creates both documents, codes their lines and attaches the original invoices. The Controller examines the fund rule and available amount, then records each decision. Only after the eligible bill is ready should the Controller use the native bill approval action.
Follow the approved bill into a scheduled outbound payment. Treasury Analyst uses the release action and checks the operation result. Retain the bank reference before the payment is marked reconciled. The finance team can then read the same case from the restriction decision, the bill, the payment and the ledger account. This is a useful first review because it exposes different decisions without requiring an entire reporting year to be migrated at once.
Features to start with
Roles on the team
- AP Specialist
- Prepares partner bills and their coded lines for review.
- Staff Accountant
- Maintains accounts, journals and accounting periods for the organization.
- Treasury Analyst
- Schedules and releases payments, then investigates cash matching.
- Controller
- Reviews restricted spending, bill decisions and the accounting record.
- External Auditor
- Examines recorded decisions and supporting evidence.
Set up Fund Accounting your way.
Start free, then use Proto to change fields, steps and approvals before your team goes live.