Among the trends affecting nonprofit financial management, technology, and its resultant impact are top of mind as organizations work toward their goals. Technology is changing rapidly, with new advances from the for-profit world pushed into the nonprofit world almost as soon as they arrive. It is these advances that are changing operations, accounting, and yes, nonprofit financial management. Here’s a look at several major trends that will enhance nonprofit financial management now and in the future.
Artificial Intelligence (AI)
It’s not the rise of the machines exactly, but close. AI, or artificial intelligence, is making inroads into nearly every aspect of life today. You may not even be aware of the AI all around you. The chatbots that answer your questions on a favorite website or the phone tree at the bank may both be powered by AI bots that combine machine learning with language sensitivity to perform amazingly complex tasks.
Nonprofit financial management may soon include AI in some capacity. Although bots won’t take the place of a smart CFO or director of finance, they can be used for all sorts of clever things, including common accounting tasks.
AI isn’t good with gray areas, so skilled financial managers will still be needed, but it is rapidly becoming an indispensable technology and one that will soon be part of the nonprofit world.
Cybersecurity
If your nonprofit hasn’t been affected by a cyber-attack, phishing scandal, virus, or another cyber crime, consider yourself lucky. Most aren’t so lucky. The Nonprofit Quarterly reports that cyber-attacks are on the rise. In just one example, a small nonprofit was hacked and had their data held for ransom—to the tune of $43,000. The same article previously cited reported that in Los Angeles, a hospital had their data held for $14,000 ransom. If that doesn’t alarm you, it should. When criminals go after hospitals and small nonprofits, you know they will stop at nothing.
Data contained on your nonprofit’s computers can be corrupted, stolen, or held for ransom. It’s not just customer or donor data that’s at risk. Vendor data from your accounting systems can also be stolen and resold.
Many nonprofits do not have someone on staff who specializes in cybersecurity. They can’t afford it. In that case, finding someone trustworthy to outsource cyber security is essential for your security, growth, and peace of mind.
Cloud Computing
Dovetailing on the topic of cyber security is cloud computing. Cloud computing offers greater security for the average company or nonprofit. They also offer shared storage space, shared costs for software, and greater access to software than most companies can afford on their own.
Cloud software includes both nonprofit accounting and nonprofit financial management software, as well as software to help you track and manage grants, donations, donor relations, membership groups, and more. Cloud offers mobile interfaces, so it goes with you, and it offers more access to better software. It’s worth taking a close look at cloud computing for your nonprofit organization.
Technology Now and Later
Technology changes rapidly, and it can feel overwhelming when you must keep up with it. If you aren’t sure what to add to your tech slate now or if you should wait for later, speak with the experts at Beck & Company.
We are a certified public accounting firm that serves the nonprofit world. We keep our finger on the pulse of software related to nonprofit services, so we can guide our clients into wise choices for now and the future.
Trends come and go, but technology is here to stay. Choose the right technology to support your organization’s growth and fulfillment of its mission.
Beck & Company
Beck & Company is a certified public accounting firm serving the greater Washington D.C. area and the Eastern seaboard. We offer consulting services, auditing, and software selection to help nonprofits with their accounting needs. Contact us today for more information or assistance.