Association Technology for CFOs:  Aptify

Selecting and implementing an Association Management System (AMS) is a high-stakes decision that directly impacts financial operations, reporting accuracy, and overall efficiency. Aptify, a veteran in the association technology landscape for over two decades, offers a comprehensive suite of business applications designed to support both back-office operations and the online member experience.  While its broad capabilities make it a popular choice, its real strength lies in its robust development platform, which enables extensive configuration.

This article is based on independent research and experience. At the time of publication, SoundPost is not affiliated with, sponsored by, or endorsed by Aptify or its parent company, Momentive Software, Inc.  However, we continue to evaluate strategic partnerships that align with our expertise in association finance and technology.

For finance leaders, the most critical evaluation criteria of any AMS are its accounting functionality, integration with the general ledger and other financial systems, and reporting capabilities.  Let’s examine what Aptify delivers in these areas.

Aptify's Financial Engine

As an accounts receivable and cash receipts subledger, Aptify’s accounting framework provides structured and efficient transaction management.  The system is equipped to handle multi-entity accounting, multi-currency transactions, and inventory costing, making it well-suited for larger associations with sophisticated financial requirements.

Transaction Processing

Aptify processes financial transactions through three primary services: 

• Orders: Capture the sale of goods and services.

• Payments: Apply cash receipts and adjustments.

• Scheduled Transactions: Track deferred revenue recognition and facilitate adjusting entries.

These elements work in tandem to support the full transaction lifecycle, including cancellations, refunds, credit transfers, write-offs, and overpayments.

Product Management

All income-generating goods and services are categorized as products, each with attributes such as pricing, GL accounts, and revenue recognition settings. Pricing and discounting structures are highly flexible. The system also supports product bundling, which is useful for associations offering membership packages, event registrations, or training courses as part of a combined offering.

Revenue Recognition

Aptify accommodates both immediate and deferred revenue recognition, supporting fixed-date deferrals for event registrations and period-based deferrals for dues and subscriptions. This flexibility ensures that financial reporting accurately reflects the timing of revenue earned..

General Ledger Integration

Each transaction within Aptify generates General Ledger (GL) entries, which are aggregated into Batches and exported periodically following the association's business rules.  Each Aptify Batch is associated with a designated Accounting Period, ensuring alignment with the general ledger and simplifying reconciliation processes.

Aptify's native integration process is file-based, requiring manual data transfers, but third-party API-based integrations for popular accounting systems such as Sage Intacct are available for real-time connectivity. The Aptify development platform allows for custom-built integrations, if a particular connector is not available.

Financial Reporting

While Aptify’s standard financial reports are somewhat limited, its flexible viewing system and powerful development platform compensate for this. Associations can develop custom reports tailored to their financial needs, including deferred revenue schedules, GL reconciliations, and advanced aging analyses. A deep understanding of Aptify’s data model is crucial for accurate reporting, particularly regarding relationships between Orders, Payments, Scheduled Transactions, and Batches.

Automation and Workflow Optimization

Aptify supports event-driven and scheduled automation, allowing for the development of end-to-end financial workflows. Automated transaction batching, scheduled installment payment processing, and transaction anomaly alerts can significantly reduce manual workloads and improve financial oversight. 

Integrations with financial and business applications such as CardPointe for payment processing, Avalara for sales tax compliance, and FedEx and UPS for shipping rate calculations, ensure efficient and accurate transaction processing.

Closing Notes

Aptify’s financial capabilities provide association CFOs with a solid foundation for managing association accounts receivable, cash receipts and revenue recognition, but the system’s true potential lies in its ability to be strategically configured and seamlessly integrated into an organization’s broader financial ecosystem.

For organizations with complex reporting requirements or unique business processes, Aptify’s flexibility can be both a strength and a challenge. Its robust platform allows for extensive configuration, but this also necessitates in-house expertise or external support. A well-implemented Aptify instance can significantly improve financial operations, but achieving this outcome necessitates careful planning, investment in knowledge, and a clear strategy for integration with financial and operational systems.