Some revenue streams are recognized on a modified cash basis, while others are recognized as accruals
Fremont, CA: With an AMS, you connect your preferred financial management system to a significant amount of member transaction data for the accounting team. To ensure strong data integrity, your membership and accounting teams should work together instead of in silos.
Is it time to use an AMS to easily integrate with your financial management system at your professional or trade association? Three major benefits of implementing an integrated financial management system are listed below:
Increased efficiency through automation
The number of automated procedures within a business has grown exponentially in recent years. In accounting, the same is true.
The Association of Chartered Certified Accountants predicts that intelligent, automated accounting systems will have a significant impact on their businesses over the next three to ten years.
Trade and professional associations that use an AMS can export and import data manually with decent results. However, you would lose the efficiency and accuracy of automated procedures that more than half of C-level executives expect to deliver soon.
Visible audit trails and clean data
The last thing anyone wants is to make mistakes or duplicate efforts.
Approximately half of companies believe that these issues are caused by human error, according to Experian. How can errors be reduced? Take advantage of automated processes by integrating your financial management system with your AMS.
In addition to reducing errors, seamless integration will also provide a complete audit trail of transactions, which is especially important during audit season.
Integrity and reconciliation of data
Some revenue streams are recognized on a modified cash basis, while others are recognized as accruals. As a result of this modified cash basis accounting, reconciliation can be a challenge.
With an AMS, you simplify the reconciliation process and increase accuracy regardless of whether your association recognizes membership revenue annually or periodically.
An event registration AMS can also be configured to recognize revenue in the month the event takes place rather than the month it is received. With these three core benefits in mind, you should be able to convince your executive team or board of directors to consider association management software that integrates with your financial management system. Your association leaders don't want to be among the 65 percent of executives who don't trust how their organization uses their data.
