Tech-Savvy Financial Programs are Key to a Chapter's Success
One of the maxims I live by is: “Your level of freedom is closely tied to your level of debt.” The ability of our chapters to provide a vibrant collegiate sorority experience is closely tied to their level of financial stability. Phi Mu has worked to provide our chapters with the tools necessary to obtain that stability.

It is hard to believe that into the late 1990s, Phi Mu used a manual whiteboard system as the basis of chapter accounting. That process was slow and laborious. Chapter treasurers had to send out bills, collect checks and cash, deposit the funds and reconcile the collections to
the whiteboard reports. There were duplicate entries required and errors were common.

That system was followed by a DOS-based software developed by a vendor specifically for Phi Mu. This system made reconciliation and reporting easier, but still required the
treasurer to submit bills to members manually and collect cash and checks for manual deposit.

In spring 2006, Phi Mu made a giant stride in financial management by contracting with the Automated Payment Highway to license their Web-based software. APH brought Phi Mu a state-of-the art system that provides paperless billing, payment methods that do not require the handling of cash or checks, automated payment deposits, online check writing,
and advanced reporting.

APH took the treasurer’s focus away from the paper-intensive busy work of billing, collection, check writing and bank reconciliations. Instead, APH allows our treasurers to focus on financial analysis, allowing treasurers to better understand the flow of finances and quickly identify situations that may be detrimental to the chapter, such as low cash flow
or overspending. Quickly identifying these issues allows the treasurer to take the necessary
actions to remedy the situation.

Another tool Phi Mu introduced was the automated budget planning sheet. Two years ago,
the spreadsheet was updated with more automated calculations to make budget preparation easier. We also divided the budget year into halves. The purpose was to help our chapters understand the concept of cash flow. Often a chapter would prepare a balanced budget, but find themselves in financial difficulty during the year. All of their income targets were met, but they still did not have money at critical times to pay for activities. By dividing the budget into
semesters, chapters can see that the timing of the receipt of funds is as important as a balanced budget.

Our latest financial system is our new online badge ordering system. This was our last paper intensive process that was converted to a Web-based system. Working with Group
Interactive Network (GIN), we developed a system where each Phi can sign on, view badge options, order her badge and pay for it, without involving the treasurer! Treasurers no longer
have to complete paper order forms for the Phis, reducing calculation and data entry errors.

The goal of these improvements is to put each chapter in the best financial position possible and to teach collegians that wise management of one’s resources is good for Phi Mu and
good for them. The positive habits of fiscal responsibility will serve each young woman well throughout her adult life.