Financial Accounts

The “Financial Accounts” feature in the Finance module of Retention CRM allows member-based organizations such as Associations, Chambers of Commerce, and Nonprofits to connect their payment processing with their accounting software such as Quickbooks and Xero (Retention CRM seamlessly integrates with both). It acts as a bridge, ensuring Payments are categorized and recorded accurately in both systems. This creates a seamless flow of financial data and simplifies accounting tasks.

• Accurate Accounting: Financial accounts ensure Payments are categorized into the correct income streams (e.g., membership dues, event fees, donations) for proper financial reporting.
• Simplified Reconciliation: By linking Retention CRM accounts with their accounting counterparts, associations can easily reconcile Payments and reduce errors during the reconciliation process.
• Streamlined Reporting: Financial accounts enable generating reports based on specific Payment types, providing valuable insights into funding sources and spending patterns.

How to Use “Financial Accounts” Feature in Association Management

Let’s explore the “Add Financial Account” fields and how a nursing association can utilize them:

• Name: This clearly identifies the account (e.g., “Membership Dues”).
• Description: Provide a brief explanation of the account’s purpose (e.g., “Records income received from annual membership fees”).
• Owner: Leave blank as the association owns the account.
• Financial Account Type: Select the appropriate type based on the account’s function (e.g., “Asset” for bank accounts, “Liability” for deferred revenue).
• Accounting Code: Enter the corresponding code used in your association’s accounting system for this account.
• Account Type Code: (Optional) This is relevant for QuickBooks integration and can be left blank if not using QuickBooks.
• Tax-Deductible?: Indicate whether Payments to this account are tax-deductible for donors (relevant for donations accounts).
• Enabled?: Set to “Yes” to allow using this account for Payments.
• Is Tax?: Select “No” as this is not a tax holding account.
• Tax Rate: Leave blank as this doesn’t apply to most association accounts.
• Default?: Select “Yes” for frequently used accounts (e.g., Membership Dues) to expedite Payment processing.

By setting up relevant financial accounts with accurate information, your nursing association can leverage Retention CRM to manage finances efficiently and gain valuable financial insights.

More Use Cases for Nonprofits, Associations and Chambers of Commerce

Advocacy Campaign Fundraising for an Environmental Nonprofit

• Association: Environmental Nonprofit
• Goal: Track and manage donations earmarked for specific advocacy campaigns.

Retention CRM allows creating Financial Accounts with descriptive names like “Clean Air Campaign Donations” or “Endangered Species Protection Fund.” These accounts can be linked to specific advocacy campaigns within Retention CRM. When a donor specifies their Payment is for a particular campaign, the donation is automatically categorized into the designated Financial Account. This enables the nonprofit to:

1. Track Donations by Campaign: Easily generate reports to see how much funding each campaign has raised. This helps measure the effectiveness of different advocacy efforts and allocate resources accordingly.
2. Targeted Communication: Identify donors who support specific campaigns and tailor future communication to their interests. This can strengthen donor relationships and encourage continued giving.
3. Transparent Reporting: Clearly demonstrate to donors how their Payments are being used for specific advocacy initiatives, fostering trust and accountability.

Membership Tiers and Benefits for a Chamber of Commerce

• Association: Chamber of Commerce
• Goal: Automate membership fee allocation and track benefits used by different membership tiers.

The chamber can create Financial Accounts for each membership tier, such as “Basic Membership Fees” or “Premium Membership Fees.” Retention CRM can be configured to automatically assign incoming membership fees to the appropriate Financial Account based on the member’s chosen tier. Additionally, the chamber can create separate Financial Accounts for benefits offered to different tiers, like “Networking Event Attendance” or “Discounted Conference Registration.” When a member utilizes a benefit, the corresponding Financial Account is debited. This system allows the chamber to:

1. Streamlined Fee Management: Effortlessly track revenue generated from each membership tier, simplifying financial reporting and budgeting.
2. Benefit Tracking: Monitor which benefits are most popular among different member tiers, allowing the chamber to tailor future offerings and optimize member value.
3. Targeted Promotions: Identify members who haven’t used all their tier’s benefits and send targeted promotions to encourage them to do so, maximizing member engagement.

Program Grants Management for a Social Welfare Association

• Association: Social Welfare Association
• Goal: Efficiently manage grant funding for various social welfare programs.

The association can create Financial Accounts for each program they run, such as “Educational Scholarship Program” or “Food Bank Assistance.” When they receive grant funding for a specific program, they can allocate those funds to the designated Financial Account. Retention CRM can track program expenses categorized under each Financial Account. This enables the association to:

1. Grant Monitoring: Ensure grant funds are used solely for their intended program, maintaining transparency with donors and funders.
2. Program Efficiency Analysis: Generate reports to analyze program expenses and identify areas for cost-optimization or improvement.
3. Impact Reporting: Demonstrate to funders how grant money directly translates to program impact, strengthening future funding applications.