Lesson 3.3: Chart of Accounts Format and Structure
The foundation of FastFund Online is its flexible, table-driven Chart of Accounts. Unlike legacy systems that require you to create a long, repetitive list of accounts (e.g., creating a separate “Office Supplies” account for every single department), FastFund uses a segmented structure. You define your segments once (Funds, Cost Centers, Object Codes) and then link them together to create valid account numbers. This lesson covers how to design this structure to meet your reporting needs.
The Segmented Account Structure
FastFund allows you to create an account number with a maximum of six segments and up to 36 digits in total. The structure is designed to tell the “story” of every financial transaction: Who paid for it (Fund), What program was involved (Cost Center), and What was purchased (Object Code).
The account segments are organized as follows:
1. Fund (Required): The first segment always identifies the self-balancing Fund or Net Asset Class (e.g., Unrestricted, Temporarily Restricted).
2. Cost Centers (Required): You must have at least one cost center segment, but you can have up to three linked tiers. These identify programs, grants, departments, or locations.
3. Object Code (Required): This identifies the specific natural account (e.g., Cash, Rent, Salaries).
4. Sub-Account (Optional): A subsidiary segment off the Object Code for granular detail (e.g., breaking “Travel” down into “Airfare” and “Lodging”).
Multi-Tiered Cost Centers
A unique feature of FastFund is the ability to create a multi-tiered cost center structure. This is ideal for organizations that need to report on funding sources that span multiple programs, or programs that operate across multiple locations.
• Example: You can set up a hierarchy where the first tier is “Program” (e.g., After School), the second is “Funding Source” (e.g., Federal Grant), and the third is “Location” (e.g., Downtown).
• Reporting: The system allows you to run reports that automatically roll up these tiers. You can see total expenses for the “After School” program, regardless of the funding source, or total expenses for the “Federal Grant,” regardless of the program,.
Defining Your Structure
The definition of your chart of accounts is performed in the Administration > Company Setup > Accounting Settings area.
• Segment Labels: You can assign specific names to your cost center segments, such as “Department,” “Grant,” or “Site.” These labels will appear throughout the system on data entry screens and reports.
• Segment Length: You define how many digits each segment requires (e.g., a 2-digit Fund or a 4-digit Object Code).
Critical Warning: Locking the Definition
Great care must be taken when defining your account structure. Once you begin to identify individual segments (funds, cost centers, object codes) to make up your chart of accounts, you cannot change the account number definition. You must ensure your chosen format (segment lengths and order) will meet your long-term needs before entering data.
[INSERT SCREENSHOT: The Accounting Settings window where Segment Lengths (1-6 digits) and Segment Labels (Fund, Program, etc.) are selected]
Object Code Ranges
To ensure financial statements are generated correctly, FastFund uses Object Code Ranges to classify accounts. This prevents users from creating an Asset account using a number reserved for Expenses.
The recommended ranges (using a 4-digit object code) are:
• 1000-1499: Current Assets (Cash, AR)
• 1500-1699: Fixed Assets
• 2000-2499: Current Liabilities (AP)
• 3000-3999: Net Assets
• 4000-4999: Revenue
• 5000-9999: Expenses
You can customize these ranges in the Accounting Settings window, but they must follow the logical order of the balance sheet and income statement.
System Accounts
FastFund requires four specific system accounts to manage automation. These are defined during setup and automatically created for every fund:
1. Undeposited Funds: A holding account for cash receipts before they are deposited.
2. Checks to be Printed: A holding account for payables selected for payment but not yet printed.
3. Fund Balancing Account: Used for “Due To/From” entries to keep funds balanced during inter-fund transactions.
4. Net Asset Closing Account: The account where the fiscal year’s excess/deficiency is closed