Nonprofit Accounting Blog

Nonprofit Leaders and How they Influence Board Members

The factors that contribute to the success (or failure) of nonprofits are many. Over the past month, we have taken a closer look at many of these factors. These include following through on commitments to staff and nonprofit constituents, prioritizing people over tasks, advocating for instead of simply satisfying the needs of constituents, using data to inform decisions, and using technology to take advantage of all possible venues with which to connect with all involved in the organization. In addition, we looked at how directors can help their board members to enhance organizational success by the ways in which meetings and other interactions with board members are structured in order to maximize the boards’ expertise. To learn more about this, visit here.

In addition to structuring board meetings and other interactions, leaders and directors of nonprofits have other powerful potential to positively influence the board of directors. These can be split into tasks and effective use of time. Let’s take a closer look at both.

Tasks Essential to Leaders and Directors of Nonprofits Positively Assisting Boards in their Job and the Organization Overall

  1. Ensuring compliance and control of organizational practices even as the organization grows, changes, and increases in complexity
  2. Ensuring financial practices are in place, monitored, upheld, and secure
  3. Helping structure, navigate, and implement the strategic direction of the nonprofit and being sure operations are matching intended goals and outcomes
  4. Building capability for the future by guiding current practices, future decisions, and daily operations well in addition to evaluating prior actions for effectiveness

Tips Essential to Leaders and Directors of Nonprofits Using Time with Board Members Effectively

  1. Carefully plan interactions, meetings, and prioritization of tasks/decisions that need to be done/made
  2. Manage expectations of what can be achieved in the time given to make strategic decision-making possible instead of challenging by not overwhelming board members but still wisely using instead of wasting time
  3. Use opportunities for conversation unrelated to actual board meetings (such as dinners or other gatherings) to gain better overall insight into board members and their skill sets in order to better leverage the talents they possess
  4. Think strategically about what the board truly needs to hear about and be involved in versus what can be handled within the organization’s daily operations instead. The ultimate waste of valuable time is spending it on areas that are unnecessary and not seeking guidance and direction in areas that are essential to success.
  5. Use technology effectively to communicate with board members in a convenient way that also keeps communication flowing. This means using emails or other forms of communication for check-ins between scheduled board meetings. In addition, this can involve telephone and video conferencing to make it possible for meetings to occur without requiring everybody to be in the same place at the same time in order for a meeting to be held.

Beck and Company Certified Public Accountants and Business Advisors know that achieving success as a nonprofit and positively impacting board members are no easy feats. That is why we are here to help. Needing to focus on so many people (including board members) even with time limitation plus carrying out important tasks makes it hard to also need to focus time and energy on the financial side of operations. We can help with this aspect so you can focus on the others areas that will help you be successful. Beck and Company CPAs offer a large variety of financial services that are tailored to nonprofit needs. For more information on these nonprofit services, visit here.

Contact us here at Beck and Company CPAs to request financial nonprofit service offerings or to get more information on how to help your board and constituents in order to be successful as a nonprofit.

Helping your Nonprofit Board of Directors to be Successful

Being a successful nonprofit organization has never been an easy task. Unfortunately, it is more difficult than ever to be a successful nonprofit thanks to the quick pace of changes in our modern world, higher stakes than ever before, rapid technological advances, added pressures to keep up with all of the venues being used to get the word out, and many other facets. To find success, much is required on the part of the organization. To learn more about four keys to success for nonprofits, visit here.

When it comes to your board of directors, the challenges they face are no different. The modern board faces constantly evolving challenges with multiple issues competing for its attention in a limited period of time. With so many factors influencing nonprofits and such limited time for boards to meet, how can you help your board maximize the use of their board meeting time?

Structuring Board Meetings: Have a Central Focus

As directors of your nonprofit, it all begins with careful planning of the agenda to secure adequate time for the issues you most want to focus on. As we’ve discussed over the past few weeks, if you don’t know what to focus on at your nonprofit, this can be costly and detrimental to success. If it is unclear where to put emphasis and energy, you will likely need to change your focus from day-to-day operations to people and your mission in order to ensure success. Be sure your priorities, goals, and focus are defined and prioritized first and foremost. Once you know what to focus on during the meeting, start it with the strategic issues of priority for that year, ensuring there is time for quality discussion. Routine matters can be slotted in later.

Ways to Engage the Board of Directors during Meetings and Other Venues of Involvement

In addition to the idea of using traditional board meeting discussions and forums during board meetings, site visits and specialized briefings help to draw all the key strands of the agenda together to support strategic decision-making and gain a better understanding of what goes on at the organization. After these visits and briefings, a next step is to look at trends, call out the impact of technology, and use this body of evidence to influence and inform where the organization anticipates and desires to go moving forward. However, it is also important to provide an opportunity for unstructured discussion– a free flow of information with you as the chief executive or director before the demands of the agenda take over. This also provides an opportunity to hear about and benefit from board members’ wide-ranging experience and expertise.

As Beck and Company Certified Public Accountants and Business Advisors, we understand all that goes into being successful as a nonprofit and how much work goes into being intentional in helping your board members along this same path. For this reason, we are here to help. You can allow yourself to focus on your mission and being the liaison between the organization and board if you have less to focus on in terms of the financial side of daily operations. We would be happy to assist you with your auditing, accounting, and overall financial needs. Visit here for more information on the variety of nonprofit services we offer including CFO, controllership, and accounting services.

Contact us here at Beck and Company CPAs so we can equip you as nonprofit directors to equip your board of directors while easing the burdens of financial responsibilities by helping with them. We look forward to being part of your success as a nonprofit!

4 Keys to Being a Truly Successful Nonprofit

It is often the case that mainstream businesses are a bit “ahead of the times” of what most nonprofits are doing. High-performing companies are not just sitting on the sideline in order to get ahead of the curve. Instead, they are actively implementing innovative processes and honing their focus to get ahead. These companies are increasing revenue, growing in profits, raising market shares, and improving customer satisfaction. Although the desired outcomes are a little different for nonprofits, the desire to achieve success in goals is no different between mainstream businesses and nonprofit organizations. By implementing some of the same practices these successful companies are using at your nonprofit, you can help your organization to not only get out of its own ruts but be a leader and innovator among nonprofits. In turn, you can have the level of success in achieving your mission and goals that many large and successful businesses are having in achieving their desired profits.

It all starts by putting your focus in the right place. When it comes to businesses, they have found that there is connection between strong customer and employee engagement. A genuine customer focus is needed in order for businesses to thrive. This is no different for nonprofits. There needs to be a focus on nonprofit constituents and staff members instead of just day-to-day operations. To evaluate where your organization lies in putting your focus on the people and fulfilling commitments made to them, visit here.

If the focus of your organization, just like high-performing businesses that focus on customers and employees, is on the mission/constituents and staff, you are on the right track. Now, let’s take a closer look at four key areas that will help you, along with the right focus, to be truly successful as a nonprofit that are based on keys to success found amongst successful mainstream businesses.

4 Keys to being a Truly Successful Nonprofit

  1. Right priorities start from the top but run deep. The behaviors of nonprofit leaders and board members support a focus on nonprofit constituents and the mission in high-performing nonprofits, and the practice is drilled down to include the behaviors of staff members, too. Success stems from supporting the execution of constituent- and mission-focused strategies. Leadership involvement includes crafting a formal strategy (such as a solid mission and action steps to meet it), setting clear goals, and aligning internal systems and processes with the needs that need to be met.
  2. Focus beyond just constituent satisfaction to extend to customer advocacy. Satisfaction is the global standard for measuring a focus on customers for businesses and constituents for nonprofits. But, high performers across the spectrum recognize that active engagement is essential. Feedback and referrals are both important. In addition, advocating for constituents as a whole instead of simply meeting a need or two is essential.
  3. The focus of the nonprofit should be driven, at least in part, by data. In the age of Big Data and evidence-based business activity, high-performance companies use customer insights, shared organization-wide, to shape products, services, and strategy. This should not be any different for nonprofits. Are you regularly collecting and actively using data to help meet your mission and goals?
  4. Connect with constituents in as many ways as you can, including the use of technology. Are you putting technology to good use to better make connections with everyone from donors to those who receive the services offered by your nonprofit? This can include social media venues and technology offerings meant to track interactions plus marketing initiatives. These connections should encompass sharing stories and service offerings, soliciting feedback, listening to and acting on feedback, and promoting participation.

Beck and Company Certified Public Accountants and Business Advisors know that being a truly successful nonprofit, just like a successful business, is no easy task. That is why we are here to help. With so much focus needed on prioritizing, keeping people satisfied, advocating for constituents, using data to enhance success, and connecting well with those involved, it is hard to also need to focus time and energy on the financial side of operations. Leave this part to us so you can focus on the others areas that will help you be successful. We can help with a large variety of financial services that are tailored to nonprofit needs. For more information on all of our nonprofit services, visit here.

Beck and Company CPAs would be happy to help you achieve your nonprofit goals by helping with your financial practices and carrying out audits, etc. Contact us to learn more.

Setting your Nonprofit Organization Apart: Where Do Your Commitments Lie?

It is undeniable that you want your nonprofit organization to be as successful as possible, but do you really know what that takes? It can be easy, almost too easy, to simply do what has always been done at your organization instead of trying to be the best you can be and set yourselves apart from the pack. Too often, nonprofits do what they have always done instead of being innovative leaders themselves. Don’t let the success of your organization be robbed by a lack of initiative and best practices to simply maintain what has always been done and what is comfortable.

If you agree that you want to be as successful as possible as a nonprofit, that some things will need to be developed instead of staying the same in order to get there, and that you want to separate yourselves from the identity of “surviving” with acceptable practices to “thriving,” how do you do this? It starts by having a true focus on so much more than just day-to-day operations and tasks. It stems from a focus on people.

Developing the Right Focus on People instead of Operations

Let’s take it a step further and consider if your organization really does even focus at all beyond the day-to-day operations. Should your focus just be on routines and practices or should there be more of a focus on the people? Have you considered the people you are trying to reach and the people trying to make this outreach possible by working for your organization? This is an important starting point to evaluate your priorities and where your focus actually lies. It takes being focused on your mission and its constituents and helping your staff to be successful in these efforts.

If the focus of your organization should be on the mission/constituents and staff, you need to evaluate how they currently are being reached and how they are feeling. Let’s take a closer look at how to evaluate this by using some reflection questions you can ask yourself. The reality is that these questions should highlight if you are keeping your commitments to these groups because keeping commitments is essential to success.

Questions to ask yourself regarding those you are trying to reach based on your mission (your nonprofit constituents):

  • Are we meeting the needs we said we would meet or failing to provide what was promised?
  • Are constituents satisfied or disgruntled?
  • Does our mission come across to our constituents in how we act upon it or not?
  • Do constituents feel comfortable interacting with staff members and that their needs are being understood and responded to?

Questions to ask yourself regarding your organization’s staff:

  • Are we keeping promises made to our staff?
  • Are staff members feeling like they are being taken for granted, or are they appreciated?
  • Are staff needs being met by the organization to the point that they can truly focus on meeting the needs of others—of the nonprofit constituents being served?
  • Are staff members treating constituents well?
  • Are staff members bought in to the mission?
  • Are staff members equipped with the resources and training they need or not?

As Beck and Company Certified Public Accountants and Business Advisors, we realize just how much goes into being successful as a nonprofit. This is so much more than just day-to-day operations but requires pouring time, energy, and resources into the people serving and being served by the nonprofit. That is why we are here to help. You can allow yourself to focus on your mission and the important people involved with your nonprofit more if you have less to focus on in terms of the financial side of daily operations. We would be happy to assist you with your auditing, accounting, and overall financial needs. For more information on the variety of nonprofit services we offer including CFO, controllership, and accounting services, visit here.

Contact Beck and Company CPAs to find out more about helping your nonprofit to be successful and how we can help you achieve this by meeting your auditing and accounting needs.

New Tangible Property Regulations: What You Need to Know

It has been a long time coming. In fact, it has taken over ten years, but the tangible property regulations have finally been finalized. Why is this important for you and your business? In short, the new regulations will have a far-reaching impact because they affect every taxpayer whose business uses tangible property. If this applies to you, it is important to understand the new regulations and what they mean for you with regards to implementing them. The reality is that the rules are complex and comprehensive. They will require careful consideration of your circumstances and may necessitate new collection procedures in order to have the necessary data captured to use in implementing the regulations. Let’s take a closer look at the history that got us to where we are today and an overview of the new regulations to help you gain a better understanding of them.

The History of Regulations Past that Led us to Where We are Today:

First, understanding the background of these regulations and their history is essential. These regulations come as a result of a long-standing debate over the distinction between deductible repairs and capital improvement and whether tangible property is deductible or must be capitalized and recovered through depreciation. Until now, the rules were that deductible repairs included expenditures that restore the property to its operating state. On the contrary, capital expenditures were those that provide a more permanent increment in longevity, utility, or worth of the property. The IRS has announced various proposed regulations in the past decade but has turned around and withdrawn those a couple years later time and time again.

Finally, in September of 2013, the IRS issued final regulations for tangible property applicable to tax year 2014 and beyond. Now, the regulations state that all tangible property that is not inventory must be capitalized and depreciated unless there is an exception. Let’s take a closer look at how to understand the new rules.

Understanding the New Tangible Property Rules and Regulations:

-Materials and supplies are an exception if they cost $200 or less or have a life of use less than one year. In this case, the item is considered a deduction not a capitalized cost.

-When acquiring property, taxpayers are required to capitalize the amount paid to acquire or produce tangible property. This includes transaction costs.

-A unit of property is defined by how the final regulations establish a single asset for capitalization purposes. Once established, then the improvement standards are applied to the unit to see if the expenditures improve the property and require capitalization. A unit of property includes all functionally interdependent components.

-In terms of improvements, an expenditure must be capitalized if it results in betterment (B) to the unit of property, adapts (A) the unit of property to a new or different use, or results in a restoration (R) of the unit of property. This is called the “BAR” test. Expenditures on existing assets are deductible repairs only if they do NOT meet the BAR test.

-The rules regarding disposition assets have been expanded. A disposition includes the sale, exchange, retirement, physical abandonment, or destruction of an asset. This also includes when an asset is transferred to a supplies or scrap account including the retirement of building structural components. It is now the case that a gain or loss must be recognized when assets are permanently withdrawn from either use in the business or from the production of income.

-There are variations that depend on the use of a building, but in general, a building is considered a unit of property.

-Routine maintenance is covered through a safe harbor within the new regulations. In this case, expenditures may be able to be deducted for activities that would likely occur more than once during the class life of an asset that don’t result in its betterment.

In summary, the final rules and regulations classify property as deductible materials and supplies and provide guidelines for identifying costs of acquiring tangible property. This includes determinations for what a unit of property is versus what a component is, along with implications for determining depreciation class life. Capitalized improvements to property are now more defined. They include expenditures that result in a betterment of property, adapt the property to a new or different use, or restore it to a like-new or working order state after the end of its deprecation class life.

There is so much more to understand about the rules and regulations of tangible property. They pose considerable risks to your businesses if they are not correctly carried out and thoroughly assessed. Beck and Company Certified Public Accountants and Business Advisors are here to help! Please contact us for more information about your specific business regarding tangible property. We are happy to help your business to be successful on their tax filings. For further information, read this datasheet that summarizes the new and final regulations.

 

Engage your Nonprofit Constituents More with Cloud Computing

Nonprofit organizations are far more likely to use Cloud computing technology now than they were even just a few short years ago. The Cloud enables your organization to have a flexible and mobile work environment, and that’s leading to higher employee satisfaction and productivity. The Cloud is an important way to better connect staff and improve interaction with nonprofit constituents.

Over the past several weeks, we have looked at the need for your nonprofit to consider updating to a financial reporting solution in the Cloud, what being Cloud-based means, the important features offered through Cloud solutions, and how the Cloud is beneficial in addressing many challenges that organizations face all the time. To learn more about these benefits that solve issues for nonprofits through Cloud solutions, visit here.

The Cloud offers so many benefits to nonprofits including driving cost efficiencies. It also encourages a flexible and mobile environment for staff to work in that gives them the access, experience, and richness they want. Not only that, but Cloud computing increases productivity, satisfaction, and flexibility that keep staff happy even with the endless demands they face as a nonprofit.

Ultimately, these staff benefits of using the Cloud funnel down to allowing them to engage more with the people and purpose behind your nonprofit mission. That is what we, the Beck and Company Certified Public Accountants and Business Advisors, ultimately desire for your nonprofit and will do what it takes to help you achieve engagement and success as an organization. For starters, you’ll need a Cloud computing system that offers these benefits and consultations to help you understand, implement, and best use it. We offer technology consulting services for this purpose. In addition, we desire to partner with you and help with the financial and accounting aspects of your organization in order to help you stay focused on its mission. Therefore, we would be happy to conduct your nonprofit financial audits to give you the information you need to keep accounting practices functioning as they should be to further your success.

Now, let’s take a closer look at how your organization can maximize success in Cloud transformation initiatives that lead to engagement with nonprofit constituents across the board (staff, people benefitting from your nonprofit services, Board of Director members, etc.):

  1. Make the transformation and transition to the Cloud a continuous process. Cloud computing adoption should not be viewed as another project but instead as a journey that spans from strategy through execution.
  2. Drive the transition to Cloud computing from the top down. Directors and board members should manage the decisions and processes that make up the transformation/transition and guide strategic decisions that are then shared with the staff and ultimately benefit those the nonprofit reaches.
  3. Focus on strong leadership and engagement. Organizational alignment is important to managing the change. Focus on getting buy-in from staff and support of constituents.
  4. Collaborate. Nonprofit staff and IT consultants should collaborate to help embed change into every aspect of an organization. Cloud transformations are successful when everyone is working side by side.
  5. Measure success. Develop realistic and measurable outcomes for Cloud initiatives that are linked to organizational goals.

Contact us here at Beck and Company CPAs to find out more about the Cloud computing opportunities that await you and how they work through our technology consulting services. In addition, Beck and Company CPAs want to partner with you as accountants to help you get your nonprofit finances in order by conducting a financial nonprofit audit on your organization’s behalf. We want to help you engage as a nonprofit with all of your constituents, and Cloud computing plus financial audits can help you do just that!

The Benefits Cloud Computing Offers Nonprofits

It is highly likely that all nonprofit organizations would say they could leverage technology more to be of benefit to their nonprofit. Exchanging information using paper or outdated systems won’t allow you to keep up. Our world necessitates that you keep up with the business world as a nonprofit or you likely won’t survive long. Therefore, you need a Cloud computing solution that will allow you to keep up with financial reporting and accounting tasks while saving money not buying a robust software solution that is too much for your organization and too costly as well. The Beck and Company Certified Public Accountants and Business Advisors know that technology understanding and financial audits can both be daunting for nonprofits. That is why we offer technology consulting services where we can help you understand and get a Cloud computing solution to meet your needs. We also carry out audits that can give you a better glimpse into your financial reality as an organization that can also highlight your need for a Cloud solution that will make financial reporting and accounting practices in the long term.

Over the past couple weeks, we have looked at the need for your nonprofit to consider updating to a financial reporting solution in the Cloud, what being Cloud-based means, and the important features offered through Cloud solutions. With this background knowledge, let’s dive in deeper to why all of this really matters for your nonprofit by looking at how Cloud computing will ultimately benefit your organization.

The challenges facing nonprofits are many and include how to use technology effectively, how to enhance productivity, and how to recruit and retain talented staff members. Here’s more information about each challenge and how Cloud solutions can be of benefit in addressing these challenges:

Using Technology Effectively

Nearly every person is a consumer of technology. This means a myriad of choices for everything from mobile devices to tablets and laptops exist. Cloud-based applications are hardware insensitive enabling a user to work on any platform they choose. This allows each member of your organization’s team to use technology as they prefer to use it using whichever device they find most comfortable for them. With flexibility comes comfort, yet you won’t compromise the essentials because all constituents can work with and access the same important data on the Cloud computing system. The beauty is that it’s just on the device they prefer to use!

Enhancing Productivity

Is your financial information spread across multiple databases and filing systems? Cloud-based solutions facilitate the adoption of digital, optimized workflows. This means you won’t be searching for information in a variety of places or losing time in completing tasks. Being able to work efficiently regardless of location can lead to higher productivity. There’s no need to access multiple software and paper databases to get the information you need. A Cloud system allows you to store all of the data you’ll need in one place. Let the Cloud manage all the information in one place, and you won’t lose time getting it when you need it.

Recruit and retain great staff members

The world is always changing, and your organization will need to keep up in order to attract new staff as it grows. The key is to offer an environment that can support flexible working hours, a work/life balance, opportunities to develop professionally, and the opportunity to work with leading edge technology. Potential staff members are attracted to organizations that are keeping up with these trends in addition to making a difference in their sector and in the world as a whole. The Cloud allows this to happen because it offers flexibility of access, time, and use of any technological device. A Could-based work environment allows flexible working arrangements.

As you strive to effectively use technology, enhance productivity, and recruit and retain a great staff, your nonprofit will benefit from Cloud computing solutions that allow you to achieve these goals with ease. The Cloud benefits are many, and the challenges faced can be reduced simultaneously. Contact us here at Beck and Company CPAs so we can help you transition to the Cloud and use this technology to make audits easier. It would be our privilege to conduct an audit for your nonprofit, and we look forward to hearing from you.

Cloud Computing Features for your Nonprofit

Just like businesses, nonprofit organizations need to keep up with the technology of the time. The potential found in Cloud computing software to transform your financial reporting and make the complications of nonprofit accounting records easier is worth strong consideration. To learn more about the need for this and what being Cloud-based really means, visit here. Beck and Company Certified Public Accountants and Business Advisors know that nonprofits need solutions to help them with the accounting side of operations as well as the important work of fulfilling their mission. With Cloud computing in place, your audit processes will also be more streamlined and simplified. Learn more about our technology consulting services to help you get the help you need to transition to the Cloud. Then, learn more about our financial auditing services that we can conduct to help your nonprofit with its accounting and process needs using the information you have stored in the Cloud. The Cloud provides some key features for nonprofits that are not available with on premise software solutions.

Let’s take a closer look at the key features of Cloud computing that would be useful for nonprofits:

  • Always accessible- anywhere at any time

Cloud-based applications keep work online in a password-protected database with exclusive and secure access control. It’s easy to log in on any computer or mobile device with a web browser and Internet connection. This could be from the office, at home, at an off-site meeting, or anywhere else you need to be. Total connectivity on the go is a key feature needed in our mobile world!

  • Data and information stored safely and reliably

Data reliability is closely related to data security. In essence, organizational information stored in the Cloud is available whenever it needs to be referenced. Cloud computing solutions protect data reliability in a number of ways, including redundant servers and automatic backup.

Natural disasters at the office building won’t wipe out your nonprofit altogether if a Cloud solution is being used to store operational information. Information is still intact and secure in the Cloud, running on redundant hardware and backed up for complete continuity. By simply logging on to what is stored on the Cloud, you’ll get back to your important work without losing time or information. When it comes to data security and disaster recovery, Cloud computing solutions offer the robustness needed to handle whatever unexpected events may come your way.

  • Initial implementation and upfront costs are lower than other solutions

Cloud-based software systems offer a lower start-up cost and can assist in smoothing out processes. Rather than paying for costly license fees up front and annually for continuing software maintenance, Cloud-based applications are different. The best part is that paying for ongoing maintenance and fixes is substantially reduced with Cloud systems that are automatically being maintained and upgraded.  This is a significant benefit to nonprofits who are always needing to save money where they can. Typically, Cloud solutions are paid for based on storage space needed or number of users which makes them ideal for nonprofits of all shapes and sizes who are not large corporations that can afford seemingly unlimited systems and features.

  • System updates automatically

The Cloud is automatically updated by the provider of Cloud computing solutions so the real-time version is always the most current. This eliminates the need to use precious time waiting for software updates to be installed, and the latest features are always ready to use and are readily available.

  • Enhanced efficiency

Collaboration and productivity are assisted with solutions in the Cloud. This happens because as newer Cloud-based applications become available and are integrated into the system, they are available instantaneously and offer immediate benefits. Remember, with Cloud solutions, what is accessible to you on your software is also available to everyone else using the same system with no lag time in sharing information and collaborating. Your organization’s staff can work together more seamlessly than ever before!

  • Less maintenance required

With a Cloud-based system, it is time to say goodbye to work interruptions for IT fixes! This means upgrades happen in the background without any disruptions, allowing your nonprofit operations to stay fully functional at all times.

Beck and Company CPAs are here to help with getting your accounting needs as nonprofits up to par through Cloud computing consulting assistance, and by carrying out your audits for you using the data and financial accounting information stored on the Cloud. Contact us to learn more.

Nonprofits, Do You Need Cloud Computing Technology?

It may seem like a distant memory now or could possibly be a very recent reality for you, but no matter when your nonprofit began, the start-up process likely had similar feelings and realities. There was great emotion and excitement of the possibilities and potential impact your organization could make, yet fear and trepidation of the unknowns. Money was tight, and needs (personnel, supplies, etc.) were great. “Extra” was only in your vocabulary to represent all of the needs for more time, resources, space, etc. As your nonprofit grows, some of these extremes have likely been reduced a bit, but it is also so easy to be involved in the day-to-day operations that you forget about the need to keep up and get ahead. If this is your reality, are you potentially overlooking important technology that could propel your nonprofit forward through modern Cloud computing options?

As nonprofits, your organization likely grew organically and only added on technology as it was desperately needed and when it could be afforded. This approach allowed your organization to adequately address immediate needs but nothing more. You may see your nonprofit still lagging behind the time, or may be noticing that the systems you do have are simply unfit and underqualified for the demands of keeping accounting and financial reporting systems updated in our modern world. It’s hard to keep up with the technology industry that changes so quickly and costs so much, but poorly integrated systems may end up being more costly due to lost productivity, poor data accuracy, and unnecessary delays or errors in accounting processes and reporting. Realistically, these factors translate into lost opportunity for your nonprofit. Although many bells and whistles exist that aren’t necessary, there are some that are necessary. If there is one solution you’ll need to keep up, it is Cloud computing. The growing trend of transferring financial reporting to Cloud computing venues eliminates many issues but also provides for many opportunities.

Do you want to create an advantage by adopting Cloud-based technology and achieve more work efficiency at the same time? Over the past few years, Cloud computing has emerged as a powerful tool to do just that. It offers sophisticated automation, freedom from hardware-based solutions, a substantial decrease in the need for lots of costly Information Technology assistance and support, and secure and instant access to information anywhere at any time. Beck and Company Certified Public Accountants and Business Advisors believe these factors can take your organization to a whole new level of success because they allow you to have your reporting needs met with only the level of robustness you need based on the size of your organization. Ultimately, this technology will help you have your finances in order and more readily accessible. At Beck and Company CPAs, we can help you use this more accurate and real-time data to make nonprofit financial audits easy. Learn more about our auditing services. We also offer technology consulting services to help you get what you need in a Cloud form. Find out more here. Now, let’s take a closer look at what Cloud-based technology is all about.

What is Cloud-based technology?

Cloud-based technology is often referred to as Software as a Service (SaaS). With a SaaS solution, staff can begin working immediately with the new software from any device with an Internet connection. Cloud-based solutions bundle all that you need– hardware, network, storage, services and software—into one system that is accessed anywhere, anytime via a web browser. Cloud computing applications support many of the things you already use online for your nonprofit including:

• Email

• Banking

• Applications

• Social media sites including Facebook or LinkedIn

Contact Beck and Company CPAs to find out more about why your nonprofit would benefit from the Cloud and how you can get a Cloud accounting solution to keep your financial records in order and make the nonprofit financial audits we would be pleased to conduct for you less complicated.

Nonprofit Financial Transparency Actions that Reduce the Risk of Fraud

All of us want to trust those we work with and that they share our beliefs about ethical practices. Unfortunately, this is not the case all the time. Fraud is a real risk for nonprofit organizations. Fraud can have a serious impact on your organization’s reputation, future receipt of donations, stakeholder trust, and more. It is essential that you safeguard your organization from fraudulent activity. One more important area impacted by fraud are the financial facets of your organization. This can truly be costly. We will take a closer look at financial safeguards and actions you can take to reduce the risk of fraud at your nonprofit in the area of finances. For other actions you can take to safeguard your nonprofit in the area of the board of directors from possible fraud, visit here. Those tips will help you be aware of four conditions that promote fraud and tips for avoiding it as a board.

Beck and Company’s Certified Public Accountants and Business Advisors can help with important aspects of safeguarding finances and financial transactions within your nonprofit and take the importance of this very seriously. Fraudulent activity can be costly, damaging, and ultimately destructive to organizations and their important work. That’s why we offer nonprofit financial audits to help you help your organization be very knowledgeable about the financial practices that are occurring within your nonprofit. This knowledge can be used to help you be more actively involved in upholding and maintaining effective financial reporting to prevent fraud. We can conduct internal financial audits and provide you with the facts you need to stay current on financial dealings and not allow fraud to creep into areas that are not being monitored but should be. Learn more about our auditing services here.

Financial Facets that need to be Safeguarded and Tips to Prevent Fraud

  • Checking and Banking accounts
  • Keep blank checks locked in a secure location and restrict access to them
  • On a monthly basis, have staff outside of the disbursement initiation, approval, and check-signing functions that are at the senior level obtain unopened bank statements and review cancelled checks and statements
  • Implement an independent review (here at Beck and Company CPAs, we can do this for you) of monthly bank reconciliations and related journal entries
  • Record all new accounts and closed accounts in finance committee minutes
  • Learn what fraud prevention services may be offered through your banking institution
  • Revenue and receipting
  • Use dual control where more than one person is receiving and counting receipts in addition to check and cash contributions
  • Require all grant notifications to be reported to the finance department
  • Reconcile earned revenue (such as student enrollment numbers or tickets sold) with statistics outside of the finance department
  • Disbursements
  • Compare vendor addresses and employee addresses periodically to ensure there is no crossover
  • Detect kickback schemes by performing independent price checks of payroll taxes withheld against amounts actually paid
  • Require two live signatures for every check and wire transfer that is of significant value (determine that amount as a group)
  • Reporting
  • Set reasonable spending limits on company credit cards and purchasing cards
  • Require finance department reviews of periodic reporting on all grants to ensure effective financial reporting is in place
  • Require reporting on monthly balance sheets and income statements
  • Expense reporting
  • Formulate and strictly enforce credit card expenditure documentation
  • Have a nonprofit financial audit committee member review CFO and CEO expense reports for true financial transparency in the organization from top to bottom

Financial transparency is so important to reducing the risk of fraud. Beck and Company CPAs are here to assist you with any area within the financial realm that you may need expert help in for everything from establishing more effective financial reporting systems to conducting nonprofit financial audits that can reveal anything that needs a closer look in order to be safeguarded from fraud. Please contact us for information and help in these areas.