kathy-beck – Page 17 – Beck & Company

Leveraging Technological Opportunity as a Nonprofit

There is an ongoing struggle in our world to prioritize. So many factors demand our attention and focus that it can be overwhelming and challenging to know where to put our focus, what can wait, and what is worth consideration or not. This is true just as much in our work lives as in our personal lives, and nonprofits are not exempt from this either.

With a continuous stream of challenges facing nonprofits, your organization must address, face, and find solutions to such challenges that include, but are not limited to, financial, environmental, and demographic constraints. Maximizing potential with financial constraints considering all of the factors involved can be daunting. Getting the desired performance out of your nonprofit is not easy, but it is possible. One such performance indicator that we looked at last week is transformation. Being open to change, embracing and allowing it, and carefully using finances to help is important to nonprofit success. Let’s take a look at the second performance indicator, technology, this week that is a huge part of assisting in an organization’s transformation.

Beck and Company’s Certified Public Accountants and Business Advisors know that managing all aspects of a nonprofit is a huge task. Because it is impossible to be an expert in all realms at once, we are here to help with the financial and accounting piece in addition to the technological piece of your organization that might merit outside help. We are passionate about helping nonprofit organizations to be successful and would be happy to assist in the areas of our expertise so you can focus on your areas of expertise. Learn more about our nonprofit financial service offerings here. In addition, learn more about the technology consulting service offerings we provide that will help with keeping your financial and business processes in order.

Opportunity Awaits: Leveraging Technology to Enhance your Nonprofit Organization’s Success

There is no denying that technology in today’s world is a necessity. Keeping up with technology translates into keeping up as an organization overall. Technology is critical, but nonprofits often fail to leverage the opportunities it provides. Often times even the true need for technology can be overlooked by nonprofits or justified as not necessary due to financial constraints or lack of buy in from stakeholders. Unfortunately, this may seem okay for organizations to limit their technology use or not stay up-to-date, but this will ultimately be costly.

Part of the transformation and constant development your organization needs is an ongoing process of enhancing technological processes that can automate processes, help with managing data, and create more efficiency at your nonprofit. Making the right investment choices in technology that will support your organization’s efforts and enable further transformation is key in this area. From a financial perspective, this involves gathering and providing the right information that will be used by nonprofit stakeholders to support investment decisions and calculate cost and value benefits. This includes acting on the information and research of technology options and using this data to make decisions with regards to technological advancements that will truly benefit the organization. Then, successful and methodical implementation of the decided upon technologies is important.

What forms of technology are especially worth consideration in our current, modern age?

Social technology
Mobile technology
Analytics technology
Accounting and financial system technology
Cloud technology

Knowing which technology options to invest in that will result in the best return on investment and knowing how to execute a strategy to roll out new systems can be challenging. It is important to prioritize what is needed and what will be most beneficial, understand costs and outcomes, and communicate clearly to stakeholders as to what decisions are being made and how users will be assisted in the implementation process.

Contact us to learn more about our technology consultation services to help you in the process of finding and implementing the best technology solutions that will further transform and assist your nonprofit organization in its success. Be sure to read next week’s blog as we look at yet another key performance indicator for your organization—transparency.

Embracing the Need for Ongoing Transformation as a Nonprofit

Nonprofit organizations are encountering new complications and intricacies all the time, and monitoring performance, success, and failure is more important than ever to ensure that your organization has what it takes to not just survive but thrive. Being successful and thriving as an organization requires planning, executing those plans in a methodical way, monitoring activities, and analyzing the results of those carefully thought out plans. The overall performance of your nonprofit is essential to its current and future success.

In addition to this performance piece, strong financial practices are also needed. Beck and Company’s Certified Public Accountants and Business Advisors know that doing all of this is no easy task. That is why we are here to help your organization with the financial end of being a nonprofit so you can focus on carrying out plans and acting on your organization’s mission. Contact our CPAs today to get the nonprofit accounting and controllership services you need to further your mission from a financial perspective. By allowing us to take care of some of the financial pieces, you can focus on your organization’s ongoing performance. In focusing on performance, we will take a closer look at performance indicators over the course of this month and will discuss what they mean for your organization. The “4 Ts” are four performance indicators that deserve strong consideration and ongoing analysis, not to mention action, too. The first of those four indicators is transformation.

Transformation: Adapting and Changing as a Nonprofit is Essential

It is hard to deny that businesses and organizations alike are always in the process of change. But, do you view the ongoing transformation of your organization as something that adds value to it? Or worse, do you not allow your organization to transform while forcing it to stay as it has always been? Do you see that there are benefits to transformation including financial benefits? There is value to transformation, and transformation is all about effectively managing changes made to the organization or services delivered by it.

Transformation must be viewed as an ongoing activity rather than a single event. An effective performance management system will aid in this process, bringing a clear, consistent, and constant focus on organizational strategy, planning, execution, and review. Being onboard with allowing your organization to transform with the times and helping it along in this process are not easy, and it can be challenging to see the financial benefits—at least initially.

Here are five challenges your organization will likely face in the process of transformation. Recognizing these but not letting them stop your organization from making changes is key.

Challenges associated with organizational transformation:

1. Getting people to adapt to changes

2. Securing the necessary budget to support transformation and make the needed changes

3. Determining the cost benefit of making the changes

4. Finding the right skills and people to help in the transformation

5. Making the decisions in knowing where, exactly, to put the focus in the process of transformation

Transformation requires supporting significant change in approach to your organization’s operations, technology, processes, and service delivery wherever and however it may be needed in order to improve efficiency and deliver better outcomes. Beck and Company CPAs can help you help your organization in this process by sorting through and identifying the right financial information you will need to provide to stakeholders within the organization. This financial data will support decisions around the delivery of services and will provide all involved with the best access to the relevant financial information needed to make the needed changes.

Being open to transformation and being well prepared for it with the financial data you need are great places to start in truly responding to needs and making ongoing changes as an organization. Please contact us to learn more about how we can assist you in this process of continual improvement through organizational transformation. Stay tuned next week as we take a look at another performance indicator worth consideration—technology—that is closely tied to transformation.

Making Sense of Nonprofit Audit Conclusions and Results

The nonprofit financial audit process is not complete with the preparation and actual audit alone. The conclusions that result from a nonprofit financial audit are some of the most important parts of the process for nonprofits and should not be overlooked. The auditor’s conclusions may be confusing, so let’s take a closer look at what they mean. It is important to note that understanding what the auditor was looking for and communicating well with the auditor can help in understanding the audit conclusions. To learn more about effectively communicating with your auditor and what the auditor will need from you to complete the audit, visit here.

Beck and Company’s Certified Public Accountants and Business Advisors are auditors themselves and can help you with the entire process. Learn more about our audit services by visiting here. We would consider it a privilege to be the auditor for your nonprofit audit. We are happy to give you some insight into what the auditor’s conclusions mean and what is necessitated by the government, and the information below should do just that.

During the Audit:

The process leading to the audit conclusions starts during the audit process. This is when you issue your financial statements, and the auditor tests them to determine whether the statements are materially correct. The auditor also looks at the systems and procedures used to generate the financial information to determine if they are free from obvious design deficiencies. After sufficient evidence has been gathered that your financial statements have been fairly stated, the auditor gives an opinion on those statements.

Auditor Unqualified and Qualified Opinions upon Conclusion of the Audit:

Ideally, auditors will provide an unqualified, or “clean,” opinion on the organization’s financial statements. An unqualified opinion will contain language such as “the financial statements present fairly in all material respects” and “in conformity with accounting principles generally accepted (GAAP) in the United States.” If an auditor is unable to render an unqualified opinion, a qualified opinion may be issued. The reason might be a departure from generally accepted accounting principles or a scope limitation. A scope limitation means that, except for the matter to which the qualification relates, the financial statements present the nonprofit’s financial position fairly in all material respects.

When an auditor issues a qualified opinion, the auditor believes the financial statements are fairly stated in all respects except for a material departure from GAAP, and the auditor has decided not to express an adverse opinion. If the scope limitation is severe enough, the auditor may disclaim an opinion on the overall financial statements.

If the auditor decides that the departures from GAAP are so significant that the financial statements as a whole are not fairly stated, an adverse opinion must be issued. An adverse opinion will include language describing what the auditor believes is materially misstated in the financial statements, and the effects of the misstatements. If the effects are not reasonably determinable, the auditors will state that.

In Conclusion:

Your nonprofit staff and the outside auditor should work together to ensure that financial statements are usable, accurate, and timely. Meeting these goals gives users greater confidence in the statements and helps you recognize opportunities for improvement. Stay in contact with the auditor throughout the year about matters such as changes in entity, personnel, industry, debt, ownership, direction of the nonprofit, and chart of accounts. Even though auditors must remain independent and objective, they are still a trusted advisor and resource throughout the process.

All of what goes into and results from an audit can be confusing. Contact Beck and Company CPAs to learn more and to find an auditor that is the right fit for you and your organization.

Nonprofit Financial Audit: Successfully Communicating with your Auditor

Like it or not, your organization will be audited from time to time. This can be an intimidating process, but it doesn’t have to be so bad depending on who you choose and how you communicate with your auditor. Beck and Company’s Certified Public Accountants and Business Advisors are trained to help with nonprofit audits and would be happy to assist you with yours as auditors. Learn more about our audit services here.

As auditors, we know firsthand what makes audits run smoothly for both the nonprofit and the auditor. Let’s take a look at some tips for communicating effectively with your auditor so you know what is needed and expected. In addition, let’s dig deeper into what an auditor will be asking for from you as an organization.

How should you communicate with the auditor during the audit?

Because of the pressure brought on by audits and their results, auditors understand that you may be feeling overwhelmed and nervous. The auditor wants the best for your organization just like you do, but this person can only help if you are open and candid with them. You may be asked about questionable accounting practices or pressures, fraud risk factors, and known deficiencies in accounting systems. Your honesty and genuineness can help the auditor gain a better understanding of what is truly going on with the hopes that they can help you get things resolved. Therefore, you’ll need to be real so everyone can get to the real heart of the matter and work to find solutions. Be open with the auditor about difficult areas you’ve encountered, concerns, questions, and recommendations you may have.

The auditor needs as much information as possible, and the audit process is made easier if this information is shared directly instead of an auditor needing to infer this information from documents. Alert the auditor to any outside consultants, regulatory agency inquiries or future plans, and provide related reports and correspondence. The auditor may ask you to explain significant actual-to-budget and prior-year variances. Be prepared to discuss the results of the year based on your expectations going into the year.

Don’t be afraid to ask the auditor questions. In fact, asking questions is encouraged because it helps you to truly understand the process and be better prepared for future audits. Ask why a particular schedule is requested if you don’t know. You may have a better source for that information, it may already exist in an alternative format, or you may learn a better way to organize your routine tasks as a result.

What information will an auditor ask for that you’ll need to supply?

Ultimately, auditors express an opinion on the broad financial statements. Because of this, most of the detailed schedules they request are merely items your company should have as part of its normal accounting procedures.

The auditor systematically obtains and evaluates evidence about the basic financial statement assertions contained in your numbers including:

Existence or occurrence
Completeness
Rights
Obligations
Valuation
Allocation
Presentation
Disclosure

In addition, you may be asked about any changes in the following and will need evidence. These changes include:

Governance, management, and ownership information
Operations
Technology
Personnel relations
Economic/industry developments and their impact

In summary, your nonprofit financial audit will involve interactions with an auditor. To be successful in communicating with the auditor, you’ll need to be honest and open. You will also need to disclose as much information and as many explanations as possible to what they ask you about. Don’t be afraid to also ask questions of them to truly understand the process. In addition, be ready to supply a variety of financial statements and to address any changes that have occurred since the last audit. These tips for communication and what to supply your auditor will make the audit process more successful and smooth. To find the right auditor for your organization and to use the many audit services Beck and Company CPAs provide, contact us.

Form 990: What Nonprofit Key Constituents Need to Know

As a key constituent at your nonprofit, protecting yourself and your organization is no easy task, and inaccurate tax preparation and filings on forms such as the Form 990 are one way that your organization can easily be in trouble. The good news is that you don’t have to figure it all out alone. Beck and Company’s Certified Public Accountants and Business Advisors are trained in these areas and are here to help. Our tax services are designed to help you file all of your nonprofit-related forms with peace of mind.

Last week, we took a look at how Form 990s are often misunderstood or not sufficiently understood, what risks these misunderstandings could create, the importance of seeking professional help in filing Form 990s, and what Form 990s include. To learn more about the Form 990 and what you need to know on general terms, visit here.

By now, it should be clear that protecting yourself and others from penalties is important, but how do you ensure that this happens (in addition to the help you receive from a professional CPA)? How do you actually know what must be filed on Form 990 returns? The following information will help you to be informed when it comes to filing Form 990s and all of their nuances. The questions below are meant to assist you with any future tax compliance filings and the process of informing and education boards and management teams alike. All key constituents (officers, directors, trustees, key employees, management, presidents, board members, etc.) should be sufficiently informed to be able to answer these questions.

Do all members of the governing body of your organization have a complete copy of the Form 990 that is supplied prior to filing?
Did your organization become aware of or engage in any excess benefit transactions in the past tax year?
Did your organization have any receivables from or payables to key constituents recorded on its financial statements?
Was any grant or assistance given to any of these key constituents or their families by the organization?
Was your organization a party to a business transaction with any of these current or past key constituents, employees, or their family members?
Do any donor-advised funds, where the right to advice on distribution or use of funds/accounts was granted, exist?
Did your organization hold assets in endowments of any kind?
Has your organization had any international financial accounts?
Did any key constituent have a relationship (familial or business) with any other key constituent?
Have substantial and significant changes been made during the tax year to governing documents?
Is a written conflict of interest policy in place that requires annual interest disclosure that could give rise to conflicts? If so, was this monitored and enforced regularly and with compliance?
Does your organization have written policies for: whistleblowing, document retention, and document destruction?
Does compensation determination follow a review and approval procedure with sufficient data and deliberation before a decision is reached? (A review of Form 990, Part VII is highly recommended.)
Does your organization have an audit, review, and compilation committee responsible for oversight of financial statements and independent accountant selection?
Is a gift acceptance policy used for non-standard contributions?

If key constituents can answer these questions, they will be on the right track to completing the Form 990 or reviewing it with sufficient information to avoid penalties and give accurate reporting information. With some education, information, and review, you can save your organization from lots of headaches and potential disaster in the eyes of the public, press, and IRS. Don’t leave your key constituents uninformed.

Beck and Company CPAs would like to assist any key constituent with filing the Form 990. Contact us to get the nonprofit tax assistance you need to be successful at tax time.

Form 990: An Overview for Nonprofits

With tax time looming, tax forms and reporting are likely on your mind to some extent by now and will become even more prevalent in the next few weeks and months. Tax reporting issues can be costly in many ways, both financially and to the future health or even existence of tax-exempt and nonprofit organizations. Over the years, Beck and Company’s Certified Public Accountants and Business Advisors have seen that many nonprofits and their boards are not as aware as they should be of what data and information is expected to be reported and needs to be reported on Form 990 returns. Without proper understanding of this information, there is also a risk of not being aware of the penalties that are possible to incur if these Form 990 forms are filed late, are inaccurate, or are left incomplete.

As a member of the board of directors, a trustee, or a staff member of a nonprofit, it is your duty and responsibility to review the Form 990 sufficiently to help protect both yourself and your organization from penalties. Although not an IRS requirement, it is certainly a best practice and strongly encouraged that boards review Form 990 information. By submitting proper information in a timely manner, you offer three forms of protection. You protect your organization from losing its exempt status. You also protect the organization from incurring potential financial penalties. Finally, you protect board members from the possibility of owing money personally from personal penalties.

Beck and Company’s Certified Public Accountants and Business Advisors understand that these forms are confusing, complicated, and overwhelming. Not only that, but it is difficult for those of you working at nonprofit organizations, who should be focused on the important work and mission of the organization, to truly understand them and what is expected on them. The intricacies necessitate trained professionals who are well versed in the forms and understand the legalities and complexities well. As you can see, inaccuracies can be costly to your organization’s future, but you don’t have to worry about those if you solicit the help of a professional tax advisor. Learn more about Beck and Company CPA’s tax services and the ways we can help you so your tax preparation and filing are done correctly.

Now that you understand that Form 990s and other tax forms are often misunderstood or not understood by boards and nonprofit staff members, that there are risks to inaccurately filing Form 990s but also ways to protect yourself, and that a professional tax advisor or Certified Public Accountant (CPA) is likely a necessity in helping taxes get filed properly, let’s take a quick look at a general overview of Form 990 including what it is, when it needs to be filed, and what is included on the form.

What is the Form 990?

The IRS Form 990, officially referred to as the “Return of Organization Exempt from Income Tax,” is the tax document that tax-exempt, nonprofit organizations file each year with the IRS. The Form 990 allows the IRS and the public to evaluate nonprofits and how they operate.

The Form 990 requires disclosure of potential conflicts of interest, compensation of board members and staff, and other details having to do with financial accountability and avoidance of fraud.

When do you file the Form 990?

Your filing depends on your fiscal year end date. You are required to file by the 15^th day of the 5^th month after your fiscal year period ends.

What information is required on the Form 990?

Besides general contact information, the form includes a Statement of Program Service Accomplishments, a Checklist of Required Schedules, Statements regarding other IRS Filings and Tax Compliance, Governance, Management, and Disclosure information, Compensation figures, a Statement of Revenue, a Statement of Functional Expenses, a Balance sheet, Reconciliation of Net Assets, Financial Statements and Reporting.

Next week, we will take a closer look at what key constituents truly need to understand and know about Form 990 information that is filed so they can differentiate that from what they can leave to the professionals. Beck and Company CPAs would like to assist you and your organization in filling out the Form 990. Contact our CPAs today to get the nonprofit tax assistance you need.

Cloud Computing: Improving Financial Reporting and Strengthening Security

As we’ve looked at solutions for increasing effectiveness in financial reporting over the past couple weeks, one solution we’ve explored is Cloud computing. We learned that it is an effective way to have financial reports be accessible anywhere at any time and is a trend that is set to become even more widely used in 2015. But, you may be left wondering if the Cloud truly is a solution that can help in strengthening security instead of compromising it. Financial records are so important that your data security should not be taken lightly. Beck and Company Certified Public Accountants and Business Advisors know that there is too much at stake to not be putting your organization’s safety as the number one priority. Without safeguarded data and accurate records, you could be in serious trouble. If your data is stored in the Cloud, will it truly be safe? Let’s take a closer look.

What are Cloud backup services?

These are becoming more and more popular throughout the world because they are both cost effective and flexible. Storing your information and data in the Cloud not only protects it from disasters of all kinds, but it also does not require additional resources such as hardware or software. Because content is transferred automatically, it ensures data is protected from threats that are either physical, digital, or environmental. Recovery time, in case of an emergency, will be reduced substantially because of this. This gives all constituents the peace of mind they need to know that information is safe and recovery will be quick and easy if something happens.

This backup protection is even more important because so much of the data you have is financial information. Your financial reporting and accounting records, when used through the Cloud, are protected as well. This information is just too precious to risk losing, but the Cloud allows for this protection.

For the sake of clarification, there are other backup services available besides on the Cloud, but they are not as comprehensive. Local backups are one example. This means storing data on a hard drive, CD, or flash drive. Unfortunately, lost or broken data storage tools present a problem, and the backup needs to be done at least weekly and done manually to be sure nothing is lost. Offsite data storage is another example. They may offer more protection from physical dangers (natural disasters, theft, etc.), but they require more planning and resources. They require numerous and portable media, a secure location offsite to store the media, and a plan to be sure data is being regularly backed up and transported to the location.

Beck and Company CPAs offer technology consulting services and would be happy to help you understand the Cloud more. We can help you with your technology needs so you can ensure you have easy access to all of the financial reporting capabilities your business needs while strengthening security of the information instead of compromising it. Find out more about our technology consulting services here.

Is the Cloud Safe?

While the first impression of the Cloud may be a good one, businesses still question whether the Cloud really is a safe solution in which to store their business-critical data and accounting information. Like many new technologies, the Cloud has come under serious scrutiny. How, then, can a data backup solution that is maintained online be safe?

First of all, the Cloud has strong data encryption to prevent hackers (and even your backup service provider) from unlocking your data and violating your client confidentiality. The encryption technology is so advanced, in fact, that it offers complete confidentiality of all of your data stored in the Cloud. Make sure that your data is encrypted prior to (and during) transmission and that it remains encrypted while it is stored in the Cloud for safekeeping.

Your online data archive will also be fully protected with a digital encryption key. In order to keep your data locked up tight, make sure your provider allows you (or a designated person in your office) to be the only one with access to the encryption key.

Contact us here at Beck and Company CPAs to find out more about the best ways you can accurately record financial information whether through a Cloud computing solution or by partnering with one of our accountants to help you get your business finances in order.

Financial Reporting Made Easy and Accurate with the Cloud- 2015 Trends

Last week, we took a look at a cure for financial reporting management mistakes. This week, we’ll take a look at another way to help your financial reporting to be more efficient and on track with the times. This is through Cloud computing.

Our fast-paced world means it is likely you don’t spend every minute in your office and are more reliant than ever on mobile technology. No matter where you are, you likely have times when you have a need to instantly access company information about finances and financial reports. Technological advancements have meant that it is now possible to send emails, check account balances, and view reports anywhere, any time, and on virtually any device. With a mobile framework quickly becoming the norm, there is also an increasing need to have instant access to accounting information and other vital statistics at any time. All of this is achieved through The Cloud. Cloud computing allows businesses to have this flexibility of instant access of data from any device for any constituent that is needed today.

Do ever fear that information stored on the Cloud is less accurate than that of the data stored on-premise? Well, you have no need to fear. The same data that is used for financial reporting at the office is simply saved to the Cloud so the information you access on the go is just as accurate. Essentially, it is the exact same data in a mobile format.

With the trend being that more and more organizations will transition to the Cloud in 2015 and that the Cloud offers many capabilities beyond what an on-premise solution can, the time is now to consider it. Beck and Company’s Certified Public Accountants and Business Advisors offer your business a variety of technology consulting services if you would like more personalized information about the Cloud and its application to meeting your company’s needs. Find out more about our technology consulting services here.

What, exactly, are the trends in Cloud computing as we finish out 2014 and look toward 2015? These will help you see that Cloud computing is likely to not be just a technology trend of the time but one that transforms the business world. In fact, it has the staying power and potential to forever change the way we do things. Through automation of manual processes, streamlining of tasks, and instant access to your company’s information and data, the Cloud has made nearly anything possible.

What does Cloud Computing’s Future Look Like for 2015?

1. More companies will transition to the Cloud in 2015 than ever before

For some companies, this will mean simply deciding if they will transition to the Cloud while others will move their Cloud solution to the hybrid Cloud that offers the security of a private Cloud with the scalability of the public Cloud.

2. Disaster recovery services will transition fully to the Cloud

No longer will companies use Cloud services as a simple backup. With continued reliability of the Cloud being proven, many organizations will chose to move everything to the Cloud in terms of disaster recovery service.

3. Those currently using the public Cloud will transition over to the private Cloud

Security concerns and control issues are contributing to this transition already.

4. Apps that are powered by the web are likely to become top tools for companies

The unmatched efficiency and scalability of mobile apps means they will become even more prominent.

Contact us here at Beck and Company CPAs so we can help you start off on the right foot in 2015 by transitioning your financial reporting to a Cloud-based operation through our technology consulting services. Stay tuned next week as we look at if the Cloud is truly a safe and secure solution for storing your important financial information and reports.

The Cure for Unhealthy Financial Reporting

Are you feeling like your financial management is ineffective and inaccurate? Do you need a CURE for “unhealthy” financial reporting practices and records? Look no further. We have just the financial management treatment you need to nurse your financial records and reports back to health. And, there is no better time to do this than now as you finish up the year 2014 and look to the new year of 2015. Having your financial reports in order now will help you with upcoming budgetary and company decisions that you will be making and will keep you on track to get a clean bill of health throughout all of 2015. This will also set you up for success in being prepared with reports at a moment’s notice upon request. Who doesn’t want to be healthy in the New Year?! We all do. Your business needs to be in a healthy place, too, and financial reports that are accurate and organized are vital lifelines in this health and are important tools and resources for constituents of your company or organization.

If you are in need of personalized help and attention in the area of financial reporting, Beck and Company’s Certified Public Accountants and Business Advisors are trained professionals who can help you reduce costs through business process optimization. This involves improving workflows and operational efficiencies that can ultimately have a positive impact on your bottom line. Learn more about our client accounting services here.

In addition to the personalized accounting services we offer, here are some general tips for what characterizes good and healthy financial reports and statements. As a general rule of thumb, keep in mind that the information contained within the reports should have the needs of the users of the reports in mind. Consider the audience when creating reports so the needed information is included and information that is not pertinent is not included. Not all audiences are created equal so not all reports should be created equal. Regardless, though, the reports must be correct, and more detailed information must be available upon request when more concise reports are shared. Just think of C.U.R.E., and you’ve got the cure you need when it comes to healthy financial reports!

C- Comparability

The information must be comparable to the financial information presented for other accounting periods so that users can identify trends in the performance and financial position of the reporting entity.

U- Understandability

The financial information must be readily understandable to users of the financial statements. This means that information must be clearly presented with additional supporting information supplied as needed to assist in clarification.

R- Relevance

The information must be relevant to the needs of the users, which is the case when the information influences the economic decisions of users. This may involve reporting particularly relevant information or information whose omission or misstatement could influence the economic decisions of users.

E- Error-free

The information must be reliable and therefore free of material error and bias while also not being misleading. Thus, the information should faithfully represent transactions and other events, reflect the underlying substance of events, and prudently represent estimates and uncertainties through proper disclosure.

In addition to the CURE above, there are many other characteristics of effective financial reports. These include showing context and keeping investors in mind, being compliant with rules and regulations, following the Disclosure Management Cycle, creating the reports in collaboration with others within a business team, etc. You can learn more here. Please contact us to learn more about how we can help you and your business to succeed in all areas including in the financial realm with your financial reporting practices and efficiency. Stay tuned next week for another cure to the financial record mismanagement blues!

Nonprofit Fundraising: Do you have a Sufficient Online Presence?

Fundraising. What emotions do you feel when you hear that word? As a nonprofit, does your organization dread and detest fundraising yet see its importance or is it something that you enjoy and feel successful at? For most people, they would say there is more hatred than love for fundraising so they, therefore, view it as a “necessary evil.”

Fundraising for nonprofits can be an essential part of helping acquire the funds needed to fulfill the organization’s mission. With the proper structures in place that are responsive to what donors are desirous to see, there is success to be had in terms of fundraising. Last month, we took a look at how to fundraise in a modern and connected world. In summary, current fundraising is all about focusing on individual giving through web-based tools and online efforts. This month, let’s take it a step further and look at what, exactly, should be included in your online fundraising attempts and some metrics that support the benefits of these efforts.

First, though, it is worth the reminder that all nonprofit fundraising efforts need to be properly recorded and tracked just like any other financial transaction. Although we will leave the fundraising expertise up to you, Beck and Company’s Certified Public Accountants and Business Advisors can assist you with your back-office accounting and financial needs so you can focus on your mission. We provide professional advice to help you with financial statements and bookkeeping to make sure your finances are in order. Learn more about our nonprofit services. Now, let’s take a deeper look at what makes nonprofit fundraising successful in our current reality.

What leads to success in fundraising in our current reality?

These days, everything is about the internet. Two of the most powerful ways to fundraise are through online videos and blogs. These venues give you a chance to reach a broad audience with small and meaningful messages that have a personal flare. These short pieces create “ah ha” moments for viewers as to what your cause is and how it is really making a difference. This, in turn, leads them to want to contribute to see these things continue.

Diversifying your efforts to get the word out is essential. Multi-channel fundraising is more effective because with a larger number of communication channels being used, fundraising effectiveness improves. This means that the SAME message is sent out all over the place (website, e-newsletter, videos, advertisements, mailers, etc.). These small snippets add up to a complete picture for people in understanding the mission and need to contribute. Simply put, reinforcement is important.

In summary, successful fundraising today involves needing:

Blog posts with relevant and impactful content
Video clips available online reinforcing this same relevant and impactful content
Multiple channels to communicate the same message to a variety of people in a variety of formats

What metrics support the need for an online presence?

Here are just some examples of the results:

Fundraisers who release blog content reported they were 34% more likely to have increased fundraising revenue last year.
Fundraisers who release video content reported they were 47% more likely to have increased fundraising revenue last year.
Nonprofits who accept online donations were 24% more likely to have increased fundraising revenue last year and 61% more likely to describe their fundraising efforts as “effective.”
One organization that went from a single channel of communication to multiple channels all saying the same message increased their fundraising by 40% in just one season.

For more information about nonprofit fundraising and how to properly record and report what is raised, contact us here at Beck and Company CPAs. We are here to help your organization with its accounting and business system needs.