I feel like I should know the answer to this, however...

 I have recently set up another database/company within Blackbaud Financial Edge.  Our main company is a 501c6, and we also run a 501c3.  Do I want to use the same account numbers from our main company for our c3 when accounts repeat?  For example, should my cash account, accounts receivable, interest income, etc. in my c3 be the same account numbers as I have set up in my main company?  Then when I run consolidated statements, my assumption is FE would pull the separate companies based on column filters by company?

 Or do I need a unique account structure for those accounts that are similar?

Hi Dana,

The only account that I would say is a must to keep separate is the cash account. Since Financial Edge links the Bank record to the account code segment, it's almost a necessity to create a separate account code for each bank. Otherwise you are co-mingling cash in a bank register in the system that is more than likely in separate physical bank accounts.

As for the others like accounts payable and accounts receivable, you should be fine with the same account code but a different fund (i.e. company) distinction in the account number.

You are correct that filtering by fund (i.e. company) will allow you to run each company in a separate column on consolidated financial statements.

Hope this helps.

Jeff Sobers

Indeed it does!  Thank you.

I agree with what you say as far as the Cash accounts.  Whenever you have a sepate bank account, that should indicate that you should have a separate G/L account. 

My question/confusion comes in on the separate databases/companies.  In the original question, I took that as meaning she was looking to add a database for an additional fund/company due to the IRS classification of each fund.  Could the one database be used, but with a distinction within the account code, could the additional company be set up as an additional "fund", the initial 2 digits in your account structure, and all be included in the 1 database?  This way too, the roll-up of the 2 funds/companies would allow her to run each company in a sepate column on her consolidated statements?

We are in the process of setting up a new chart of accounts and re-structuring the ledger for our foundation, and the account structure is something we feel we need to insure is set up properly up front based on what our reporting requirements will be down the road.  Any help you can provide will be greatly appreciated.

Thanks

R Healy

Hi Richard,

You can absolutely establish a second division or company within The Financial Edge by using different fund designations and then "re-use" the existing account codes (and any other account segments), again with the exception of the cash account(s). This would allow you to segment those other entities by filtering reports by Fund and leverages the existing chart of accounts. However, be careful with this as Blackbaud's license agreement requires each separate 501(c)3 to have its own licensed copy of software.

I completely agree with you that the account structure is something that needs to be set up properly from the outset. Reporting is only one of the factors that goes into developing a valid chart structure. Be sure to consider your needs in subledgers such as A/P, A/R, and Payroll. Also consider how (and where) you need to retain equity. As a Foundation, you probably also want to consider requiring transactions to balance by project (so that the debits and credits are equal within each project within every GL batch or subledger transaction). This is critical to ensuring the cash position of each development activity (i.e. Raiser's Edge fund) is accurate and will have an impact on the design of the chart of accounts.

I could go on forever about chart design, but in lieu of doing so I will simply recommend Blackbaud Professional Services for your consideration. We have a service that allows you to re-design your chart of accounts in your existing database, which allows you to keep all of your historical transactions (even in the subledgers), but with the new GL structure.

Feel free to send me an email and I can provide additional information.

Thanks,

Jeff Sobers