Why we need accounting integration with Mifos?
- Mifos is a financial software used by Micro Finance Institutes (MFI). Every financial (even non-financial) institution has the responsibility of maintaining accounting information for various purposes (eg. auditing). For maintaining this accounting information, these institutes use an accounting software. Mifos maintains transactions which can be converted into accounting information. Most of the MFIs do the Mifos transactions to accounting information conversion manually or by using a home grown solution (scripting). Currently, there is not an automated way to transfer transaction information from Mifos to an accounting software.
Why not just build accounting into Mifos?
- MFIs have other various types of operations and accounting information apart from Mifos transactions, however Mifos can only provide accounting information related to Mifos. Also, Mifos can not replace accounting software that is required by an institute. In many different countries accounting software is used to show reliability of their accounting data. External Auditors are also more familiar with the known accounting software and consider the software as standard. Due to the reason explained, MFI still have to transfer accounting information tracked by Mifos to their accounting software.
Setting up Tally ERP 9 for Mifos Accounting Integration.
Every Accounting System has a "Chart of Account" (COA). Mifos also maintains financial transaction mapped to a COA.
Mifos COA can be configured to match your Accounting System.