Transition to accrual accounting and financial reporting system for an NPO in Bangalore

The Assignment
MaGC was appointed by a Bangalore based not-for-profit to assist in transition from cash basis accounting to accrual, with focus on design and implementation of a comprehensive financial reporting system.

MaGC Approach
MaGC initially focused on getting the necessary policy changes in place for the transition to accrual accounting. With the policies in place, changes were made to business processes, chart of accounts and reporting templates. This was followed by customization of the accounting software with the help of an external vendor. MaGC prepared the Opening Balance Sheet and assisted the finance team to enter data for first month in the new system. Two workshops were conducted to sensitize the key stakeholders on information inputs required by new system and reports that are generated from it.

The Output
The transition was well-managed and the accounting guidelines provided by MaGC was accepted by Client. The sensitization workshops were well received. The transition achieved the intended objectives.

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