10 Best Practices for Using Financial Edge Software

Financial Edge NXT is a powerful software tool designed to help organizations, particularly nonprofits, manage their finances with accuracy and efficiency. With its wide range of features, Blackbaud’s Financial Edge simplifies everything from budgeting and reporting to data security and reconciliation. However, to truly harness its strategic decision making potential, nonprofits should follow some best practices that ensure smooth, effective use.

Join our nonprofit software consultants from Capital Business Solutions as we explore 10 key best practices for using Blackbaud Financial Edge NXT, helping you optimize your workflow, improve financial management, and make decisions for your organization’s success.

#1 – Set Up a Structured Chart of Accounts

A well-structured chart of accounts is key for nonprofits using Financial Edge software. Fund accounting is at the heart of a nonprofit’s financial management, and setting up a structured chart of accounts allows you to track different funds separately. Whether it’s tracking restricted donations, grants, or general operating expenses, using fund accounting principles ensures that each fund is properly categorized and managed according to its purpose. This setup helps ensure compliance with donor restrictions and provides clarity in financial reporting.

#2 – Utilize the Role-Based Security System

For nonprofit organizations, Financial Edge’s role-based security system is essential for protecting sensitive financial data. By assigning specific roles and permissions, you ensure that your nonprofit staff, board members, and volunteers only access the data they need. For example, finance staff can manage transactions, while directors can view high-level reports. This helps safeguard your nonprofit’s financial information, ensures compliance with regulations, and prevents unauthorized access, all while streamlining workflow.

#3 – Automate Reconciliation Processes

Automating reconciliation processes in Financial Edge accounting software is a game-changer for nonprofit organizations. By using the software’s automated features, you can quickly match bank statements with your financial records, reducing manual entry errors and saving time. Automation ensures that discrepancies are flagged immediately, allowing your team to address them promptly.

# 4 – Take Advantage of the Reporting Features

Taking advantage of Financial Edge’s reporting features is essential for nonprofits to make data-driven decisions. The software’s easy to use interface offers customizable reports that allow you to track donations, expenses, budgets, and more, all tailored to your nonprofits’ specific needs. Whether it’s generating a financial overview for board meetings or creating detailed grant reports for funders, Financial Edge accounting software makes it easy to produce accurate, professional reports.

#5 – Implement Regular Backup and Data Management Procedures

Implementing regular backup and data management procedures is vital for nonprofits using Financial Edge NXT. Regular backups ensure that your financial data is protected in case of system failures or unforeseen issues. Establishing a routine for backing up data helps prevent loss and ensures quick recovery.

#6 – Streamline Grant Management

Streamlining grant management with Financial Edge is essential for nonprofit organizations to stay organized and ensure compliance. The software allows you to track grants from the application stage to disbursement and reporting, helping you manage all aspects in one place. You can set up grant-specific accounts to monitor expenses, track funding deadlines, and ensure that all required reporting is completed on time. This centralized system makes it easier to manage multiple grants simultaneously, providing transparency for funders and ensuring that funds are used according to their designated purpose.

#7 – Create Detailed Budgets and Forecasts

Creating detailed budgets and forecasts in Financial Edge software allows nonprofits to plan for the future with precision. The accounting software enables you to build budgets by department, project, or program and track actual performance against projections. You can also use forecasting tools to anticipate financial needs and adjust strategies accordingly. This proactive approach helps ensure financial stability and supports informed decision-making.

#8 – Integrate Financial Edge with Other Systems

Integrating Financial Edge NXT with other systems, such as your nonprofit’s CRM, donor management, and fundraising platforms like Blackbaud’s Raiser’s Edge, creates a seamless flow of data across your organization. This reduces manual data entry, minimizes errors, and ensures consistency in your financial records. By connecting these systems, you gain a comprehensive view of your financials, improving reporting accuracy and operational efficiency.

#9 – Track Restricted Funds and Unrestricted Funds

Tracking restricted funds and unrestricted funds in Financial Edge NXT is crucial for nonprofit compliance and transparency. By setting up separate accounts for each type of fund, you can ensure that donations are used according to donor specifications. The software helps you easily monitor how funds are allocated and generate accurate reports for donors and funders. This approach not only supports better financial management but also enhances accountability and builds trust with your supporters.

#10 – Stay Current with Financial Edge Software Training

Staying current with Financial Edge software training ensures your nonprofit is fully utilizing the software’s capabilities. As Financial Edge evolves, regular training helps your team stay on top of new features and best practices, maximizing efficiency and accuracy in financial management.

Financial Edge Training with Capital Business Solutions

At Capital Business Solutions, we provide expert training tailored to your nonprofit’s needs, ensuring your team is proficient in using Financial Edge NXT to its full potential. 

Our training program offers numerous benefits:

• Increased Efficiency: Staff will learn to use Financial Edge software more effectively, reducing time spent on manual tasks.
• Better Data Accuracy: Training ensures that your team understands how to properly input and track financial data, minimizing errors.
• Enhanced Reporting Skills: Our Financial Edge consulting team teach how to create customized reports that align with your nonprofit’s specific needs and requirements.
• Improved Compliance: With regular updates and training, your nonprofit can stay compliant with financial reporting and regulatory standards.
• Ongoing Support: Our team offers continuous support, helping you troubleshoot issues and keep your Financial Edge system running smoothly.

Schedule a Consultation for Financial Edge Software Training Today

Take your nonprofit’s financial management to the next level by scheduling a consultation with Capital Business Solutions today. Our Financial Edge NXT software training equips your nonprofit team with the knowledge needed to get the most out of the accounting software, making your financial processes more efficient and accurate.

Schedule your consultation with our professionals today by calling  (843) 971-9061 or filling out the contact form below to get started.