The Skills Needed for Nonprofit Financial Management in 2018

Nonprofit financial management requires skills that include attributes of finance, accounting, operations, and technology. To be a good nonprofit financial manager, you need to understand all aspects of nonprofit finance as well as the technology supporting it.

It’s no surprise the teams you manage need these skills, too. Be on the lookout for chances to add these skills to your teams and to acquire them yourself.

The Skills Needed for 2018 and Beyond

  1. Cloud and Distributed Computing: The cloud is rapidly taking over almost all software businesses need. This includes nonprofit software, too. It’s more secure, less expensive, and easier to access on the go. Not only can you save money on your software, hosting, and security, but it also enables better data sharing, storage, and updates. If you don’t have someone on your staff knowledgeable about cloud computing, consider adding it to an IT job description or finding a consulting firm to assist with cloud migration.
  2. Search engine optimization: Visibility is the key to success in any online endeavor, and nonprofits must be keenly aware of the need for their work to stay visible. Search engine optimization helps people find your site by using techniques to make your site appear near the top of search engine results. When your site is near the top, it gets more clicks, hits, and visits. This means more interaction, awareness, and potential donors. Although nonprofit financial management may not include SEO, it may include helping departments budget for SEO tactics. It’s definitely a skill your nonprofit can benefit from, moving forward.
  3. BI and Data analytics: Business intelligence takes data from numerous systems and generates usable reports. Having BI as well as data analytics skills at your nonprofit organization is essential for nonprofit financial management, accounting, operations, and more. Understanding what information comes from where, and how to use it adequately, can help you build a more responsive, focused organization.
  4. Network and Information Security: Strong cyber security is essential for all businesses today. Many nonprofits, however, cannot afford dedicated cyber security staff or resources. While many security breaches are preventable, you still need someone in your organization to advise your teams while troubleshooting and fixing your systems. If you think your organization is immune to attack, think again. Criminals often target nonprofits, knowing they don’t have the resources to fight back. Hiring people with cyber security skills may be one of the most important choices you can make in 2018.
  5. Corporate and Nonprofit Law and Governance: Corporate laws, including laws that apply to nonprofit organizations, continually change. It’s important to have someone in your organization who understands their application to the nonprofit world and who can help you adhere to all laws pertaining to corporate management and governance. It’s also helpful to have an accounting team member who understands the nuances of pending FASB changes as they pertain to financial reporting, such as FASB 606 changes, which will impact grants and contracts.

Finding the Skills You Need

It might be hard for you to find people with these skills or you might not have the budget to hire additional people. In that case, consider outsourcing or working with consultants to fill gaps in your staff.

At Beck & Company, we offer nonprofit accounting services, nonprofit auditing services, and more to help nonprofit organizations meet the challenges of their environment. We can help you plan, budget, and prepare for the new year through our slate of services.

If you do not need accounting services but instead need cloud computing, business intelligence, or other services, you have several options. You can find independent contractors to fill these needs. Consulting firms may offer the services or may be able to put you in touch with those that do. Additionally, there are interim and temporary staffing agencies and that can help you find people to fill these gaps if you do not wish to budget for them full time.

While the new year holds many opportunities, to meet these opportunities you need to have the right skills in place for your nonprofit organization. Cloud computing, BI, SEO, and many other skills are all part of a thriving nonprofit organization.

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.