Saturday, September 22, 2018

Challenges in Maintaining Dual Book keeping

If a foundation or a NGO is asked a common challenge which consumes their enormous time, effort & resources and which they would like resolve it would be maintain book of accounts as per the international and domestic guidelines. Maintaining different account books keeping as per statuary Like 35AC/80G/FCRA others and complete tracking of the account items as per mentioned categories.

There are several other identified challenges in areas like Grant Management, Project Accounting, Vendor Management, Transparency, Expense Management, etc. Being project based organization, it mandatory desired to manage its various projects financial records. 

Grant it can be several natures like single donor multi grant or multi donor single grant. The organization receives funds from all over world; hence it is mandatory to be covered under FCRA. However, they have to also maintain books as per the local accounting guidelines. There could be typical requirement like separate maintaining the projects covered under FCRA from the projects which are not covered under FCRA.

Maintaining dual accounting is not only necessary from statutory point but lot of other attributes like project, resources, expense etc. We cannot ask a user to make dual entries also it is difficult and time taking to segment the books of account. Hence the system should be designed in a way that it should be able to maintain books as per dual accounting standards. Using Oracle EBS ERP any organization can be able to achieve the dual accounting as per defined standards.

Known organizations like Public Health Foundation of India (PHFI), Save the children, Oxfam, ActionAid, HelpAge etc. have taken advantage of the systems to automate processes and take benefits.

Oracle is an effective application to capture various projects task-wise along with their scheduled time lines, cost incurred on each project since its inception, tracking and controlling of cost on each task of the project, was in need to create accountability of project to the team delegated, was in need to create schedule for the bills to be raised during the course of the project, required billing on the basis of milestones identified with the donors, required Statement of Expenditure for each project to capture cost incurred since its inception, required donor wise reporting, required to assess the profitability project wise and period-wise of its operations in India.

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