9 Must-Haves for Association Accounting

From managing membership dues to tracking event registrations, accurate accounting is key to smooth operations and building trust. But with the unique needs of associations, standard accounting practices may fall short. That’s why you need the right features to support your specific needs.

One thing that can help your association achieve better financial efficiency? Native accounting features in your association software.

Native built-in accounting ensures your data is always accurate, up-to-date, and comprehensive. A platform that handles everything in one place—like billing, payments, and reporting—streamlines processes and keeps data organized.

In this article, we dive into 9 must-have accounting features to set your association up for success. For more info on improving your accounting processes, including a checklist of considerations, identifying risk factors with your current systems, and more, check out our free resource, Smarter Billing: Leveraging Native Accounting for Membership Success

9 Must-Have Accounting Features for Association Software

1. Full-Featured Native Accounts Receivable

Streamline your financial transaction processing and smoothly integrate with the GL package of your choice.

• Compile cash, check, and credit card receipts for sales transactions and apply against open receivables or as advance payment of any credited income application
• Manage multiple cash accounts and process transactions for multiple independent organizations.
• Generate refunds for any accounts receivable items with a credit balance.

Why? You'll reduce manual work and minimize errors, keeping your member billing processes smooth and reliable.

2. Simple and Secure Payment Gateway

Secure and affordable payment processing is essential. Your association software should support automatic card updates, next-day funding, and ACH/eChecks for real-time reconciliation and reporting.

You need simple, secure, and affordable payment processing. It should allow automatic card updates and next-day funding. Here are other must-haves:

• Get a 100% (gross amount) deposit directly to your bank account
• Support for ACH/eChecks to facilitate real-time reconciliation and reporting to help you process, track, manage payments, and minimize electronic payment costs
• Require an anti-breach guarantee and PCI validation.

Why? These features ensure that your payment processes are secure, efficient, and reduce time spent on manual reconciliation.

3. General Ledger Exports

Make sure you can create general ledger transaction export files to import into popular software systems in convenient formats, like .CSV and .IIF.

• Export only posted transactions and exclude batch transactions not yet posted
• Automatically mark transactions as exported so they aren't picked up by future exports
• Create due to/due from journal entries

Why? These features streamline your processes and help prevent duplication.

4. Smart Billing with Unlimited Cycles

Tackle unlimited, sophisticated billing scenarios and accept payments with integrated payment processing that meets the highest security standards.

• Combine multiple products (like events, products, and dues/membership fees) on one checkout transaction
• Apply special pricing formulas per product and perform calculations based on your defined data
• Generate automated email or printed invoices/reminders, and access templates
• Bill by member class, chapter, or company lists. And include section fees, subscriptions, and miscellaneous fees

Why? You'll provide a more seamless member experience and streamline processes for staff.

5. Convenient Payment Options for Members

Members should have multiple payment options, including online, mobile, and mail payments. Here are other features your association members will appreciate:

• Allow company administrators to pay for all employees
• Enable members to join or renew in advance
• Give the option to select available credits to apply to their cart at checkout
• Allow members to choose Bill Me and purchase order options as well as automatic payments at checkout
• Apply payments immediately to an account

Why? Simplifying payments makes it more likely that members will renew.

6. Automated Recurring Payments

Did you know the #2 reason members don't renew is that they forgot? Source: The 2024 Membership Performance Benchmark Report.

Why: Offering automated recurring payments for membership to keep retention rates high!

7. Credit/Debit Card Refunds

Your association software should allow you to apply refunds to credit and debit cards, directly from the system. You should be able to find transactions and issue credits without having to go to the credit card processor.

Why? Members and staff both appreciate a simple refund process!

8. Deferred Income Management

Delay income recognition until the income is earned and the related expenses are incurred. As opposed to when the invoice is generated or the funds are received.

• Automatically trigger deferred income and processing for transactions from dues/subscription products and event registrations.

Why? This is essential for accurate reporting, helping your association maintain a clear financial picture.

9. Ensure Common Association Needs Are Met

• Manage cash and/or accrual accounting, anniversary or annual accounting, and individual or corporate memberships
• Ability to separate GL accounts for different types of payments like membership fees, donations, event registrations, or product sales
• Easily manage daily financial batches, invoices, and adjustments
• Allow system admins to control how batches are used - such as by individual staff or department
• Generate automated alerts for staff

Why? These help ensure your association's accounting processes are both accurate and efficient.