Nonprofit Accounting – Page 2

Accounting for Nonprofits: Goal Setting for Success

Accounting for nonprofits grows increasingly more complex with each passing day. New rules, regulations, and laws must be accommodated and followed to ensure compliance. Daily duties require your full attention, but then there’s the list of ideas you want to implement at your nonprofit organization. Your to-do list grows while your wish list languishes. Is there any way to tame the task-list tiger and gain control over what’s important to your organization’s success?

When it comes to accounting for nonprofits, the secret to managing your time wisely is in your approach to goal-setting. Goal-setting for accounting means establishing priorities and rubrics to weed out the unimportant so that you can grow what is important. The better your time-management abilities, the better you’ll be able to support your organization’s mission through critical accounting tasks and processes.

Questions to Ask to Establish Goals

Begin your goal-setting task by answering these questions. Then, use the answers to guide your priorities.

Can I delegate any of my tasks to my team? If you’re the only accountant at your nonprofit organization, you may be unable to delegate tasks to subordinates. But if you have a team backing you up, are there any tasks on your list that can be delegate to them to free up your time to focus on big-picture tasks?
Are you doing things just because they’ve always been done that way? Many organizations fall into the trap of continuing to do the same tasks every year simply because it’s always been done that way. Hosting the same event, running the same fundraiser, and enacting the same donation drives may be safe, but it may be unprofitable. Assess and evaluate the effectiveness of every activity before adding it to your task list.
Do we cling to favorite projects? Sometimes you keep tasks on your list simply because you enjoy doing them. These may be tasks that could easily be delegated to others, but because you love doing them, you keep them. Be objective during your evaluation of your work and see if you’re clinging to any projects because you have emotional investment in them.
Does this activity serve constituents? Align your activities to the needs of your constituents and you’ll find your priorities falling into place more easily. When the focus is on meeting your nonprofit’s goals, you’ll set your sights clearly on the tasks aligned with your mission.

Three Stress-Busting Nonprofit Accounting Tips

In addition to sorting your tasks based on the question above, the following three tips can help you prioritize your time.

Establish your group’s vision and purpose: When you create, establish, and share your group’s purpose and vision, it is easier to align the tasks of the accounting department with that purpose. Extraneous tasks fall by the wayside. It’s easier to say “no” to tasks that do not fit the group’s ideals, and that helps you prioritize and organize easily.
Diversify income: Just as in the for-profit world of investing, you want to diversify your income streams. Avoid relying on one grant or a single angel donor for all of your funds. Make sure you’re always cultivating new sources of income for your nonprofit organization. Partner with the fundraising team to ensure that they understand this concept too.
Measure results: Prioritize around those activities which generate the best results for your organization. Put your energy into those tasks with greatest chance of a good return on your time investment.

Better Time Management Enables You to Grow Your Margin

A strong nonprofit organization uses its margin to support its mission but you can’t focus on tasks that increase your organization’s margin when too many other tasks compete for your time. With this method, you’ll once again become master of your schedule, and your organization will flourish.

Beck & Company: Accounting for Nonprofit Success

If you struggle with your accounting for nonprofits, Beck & Company can help. We are a CPA and business advisory firm dedicated to the nonprofit sector. Our many years of experience can help you update your financial compliance or handle all types of accounting for nonprofits. Please contact Beck & Company today for further details.

Weather the Fraud Storm with Nonprofit Accounting Audit Services

Nonprofit accounting audit services can help you weather all kinds of storm. The “storm” most often feared is also a five-letter word: fraud.

Why do we fear fraud so much? It’s a taboo subject at many nonprofits. The word is never spoken. It’s as if by speaking the word, we fear we’ll bring it on ourselves.

Little children do crazy things to wish for bad weather like snow days. They’ll sleep with their pajamas inside-out, for example, following the old schoolyard fable that such sacrifices please the skies and encourage a nice blizzard and its attendance day off from school, sledding and snowman building, and hot cocoa.

We know wearing pajamas inside-out has nothing to do with the weather conditions that foster snowstorms, yet we exhibit the same type of superstitious behavior when it comes to fraud. We’re almost afraid to say the word for fear of calling it down upon ourselves.

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Instead of fearing the word, look it squarely in the eye. Face your fears and take proactive action to build a strong culture of honesty, integrity, and ethics within your organization. Make your organization so transparent that no one will think twice about uttering the word “fraud” because they know it’s impossible within your office.

Nonprofit Accounting Audit Services: Three Steps to Prevent Fraud

While we all wish life came with the same warning-sirens that herald a tornado or other severe weather alert, fraud does give off its own signals. They’re subtle, more like static than a siren, but you can still learn how to detect them in the nonprofit workplace and take steps to clear the static from the air so that fraud is difficult (or, we hope, impossible, for people to even consider). These three steps will be your warning and shelter from fraud.

Talk about it! Fraud isn’t a forbidden word. Some nonprofit workplaces are so afraid of even mentioning the possibility that they avoid talking about it altogether. If you don’t talk about the potential for fraud in the workplace, your staff won’t be on the alert for it. Make sure that fraud prevention, reporting, and resolution are all part of your employee handbook, training, and accounting practices. Don’t be afraid to talk to anyone who may have information about potential fraud. Keep an open-door policy so that everyone is comfortable speaking up if something happens.
Be aware: To prevent problems of any type, awareness is critical. Develop a culture of fraud prevention and awareness. Everyone should practice simple fraud prevention procedures such as always have two people count out cash or place checks into the safe. Create a series of best practices for fraud detection and prevention. As the accounting leaders in your organization, you have the opportunity to implement procedures to benefit your nonprofit.
Practice drills: Once everyone understands that fraud prevention is important to the organization and that the organization is serious about prevention, the last piece in the puzzle is to make sure that everyone understands the steps to take if they suspect fraud. “Practice drills” sound silly until you consider how many other emergency situations we practice for in life. Nearly every school, office building, and hospital practices fire drills and other emergency situations; shouldn’t your organization do the same to protect against losses? Practice “fraud drills.” Identify someone on the team who is a ‘safe’ person to report suspicions too. Have the numbers handy for your nonprofit accounting audit services so that if fraud is detected you have the go-to guys and gals on speed dial for immediate help. Write everything down into a simple procedure list so you have step-by-step instructions and action items at the ready.

With awareness, prevention, and reporting procedures in place, your nonprofit will be on dry ground when it comes to fraud alerts. While we all wish that fraud and other serious workplace events came with some kind of early warning signal, in the case of fraud detection, just being aware can be enough of a deterrent.

Financial Advice and Assistance for Nonprofit Organizations

Beck & Company Certified Public Accounts and Business Advisors specializes in nonprofit financial management, nonprofit accounting audit services, and issues pertaining to the world of nonprofits. We have extensive experience helping nonprofits of all sizes achieve their mission without sacrificing margin. Contact us for more information.

Making Mindful Choices in the World of Nonprofit Accounting

Each day, your nonprofit organization faces many choices. One area where choices are of supreme importance is in the area of nonprofit accounting. Choosing how you classify donations, whether to give a trusted employee a raise, or how to comply with the new FASB 958 regulations are all choices that must be weighed and prioritized based on urgency.

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When faced with myriad choices, it is easy to feel overwhelmed. As Washington DC nonprofit advisers, we have worked with many nonprofit clients to help them identify and prioritize key elements of their accounting activities for maximum business impact. Here are several tips to help you make mindful choices about your financial and accounting needs.

Three Tips for Nonprofit Accounting to Help You Set Priorities

Focus on strategic clarity: Clarity of purpose, mission and vision is essential for all good business management, but especially for nonprofit accounting. When you clearly identify your organization’s mission and vision, you will find it easier to prioritize the essentials. Activities in direct support of your mission are funded first, with secondary activities funded next, and so on. Developing strategic clarity can be difficult if you are not used to this type of work; a nonprofit business adviser can help.
Diversify income sources: In other words, don’t put all your eggs in one basket. Relying upon one source of funding for the majority of your organization’s support can be catastrophic if something happens to the funding source. Grants may end; donations can dry up if the economy sours. Diversification of your income stream is equally as important as diversifying your investments. Diversification spreads out the potential risk if one stream dries up.
Measure outcomes: Measuring outcomes isn’t just for the for-profit world. Nonprofits should also measure the outcomes of their efforts. Measuring donor campaign results, educational activities, and other projects just makes sense. It is only measuring how well you achieved your objectives that you can prioritize funding in future years. Knowing that one activity achieved its objective while another fell short can help you decide whether additional funding, staffing, or publicity can change the dynamic or not.

Asking the Tough Questions

Asking the tough questions about initiatives can also help you set your goals. It may be difficult to learn that a favorite activity doesn’t meet your revised mission statement, but it is better to learn this now than to continue spending resources unwisely.

Ask yourself:

Are we continuing any activities just because we’ve always done them? Some companies continue with charitable events, marketing campaigns or other activities in the same manner year after year simply because “it’s what we always do.” Always ask if the activity serves the organization’s best interests now.
Are we holding onto “pet” projects? Larger organizations with a strict hierarchy sometimes fall prey to the ‘pet project’ syndrome. It may be the director’s favorite activity, or a cherished idea. It’s done simply because so-and-so asked that it be done. You must have the courage to question even pet projects to prioritize the vital ones from the rest.
Does this serve our constituents? No matter what activity you are considering, asking if it serves your constituents’ best interests helps keep your focus on what you do best. This helps you prioritize your budget and accounting activities around what matters most.

As Washington DC nonprofit advisers, we know how hard it is to ask these questions and to change the status quo. It may be helpful to bring in business advisers to help you sort through these issues dispassionately.

At Beck & Company, we offer CPA services, nonprofit accounting, and business advisory functions for nonprofit organizations. Contact us today if you would like more information about our services or help with your nonprofit business needs.

Accounting for Nonprofits Update: FASB Financial Reporting Standards Changes

If you are in charge of accounting for nonprofits, it is important to keep abreast of the FASB financial reporting standards changes. These changes are the most significant in twenty-three years, and will affect organizations to a large degree.

The New FASB Nonprofit Guidelines

On August 18 the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities.

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Like other accounting for nonprofit tasks, these FASB changes require significant planning and preparation. Failure to begin planning now may mean that your organization is unable to meet the requirements later.

The areas most affected by the changes include:

Net asset classification requirements
Information provided financial statements
Notes about liquidity, financial performance, and cash flows

The Journal of Accountancy states that nonprofits must now report expenses by their nature and function. This is a change; formerly, only nonprofit health and welfare organizations were required to follow this reporting protocol. Now all nonprofits will be required to report expenses in this manner.

In addition, a net presentation of investment expense against return is now required on the face of statement activities. Internal salaries and benefits expenses must also be disclosed as they are netted against investment returns.

Operating cash flows may be presented by either the direct or indirect method, eliminating the need for those who use the direct method to reconcile with the indirect method.

Other highlights of the changes include restructuring the net asset classifications from three to two. Nonprofits are also required to provide qualitative and quantitative information that refers to their liquidity.

The goals of these sweeping changes is to make financial disclosure more transparent for donors, investors and the general public. Many changes also reflect the changing nature of the nonprofit world.

The standard will take effect for annual financial statements issued for fiscal years beginning after Dec. 15, 2017, and for interim periods within fiscal years beginning after Dec. 15, 2018.

Help for Accounting for Nonprofits

If you struggle with your accounting for nonprofits, Beck & Company can help. We are a CPA and business advisory firm dedicated to the nonprofit sector. Our many years of experience can help you update your financial compliance, change to follow FASB 958, or handle all types of accounting for nonprofits. Please contact Beck & Company today for further details.

Accounting for Nonprofits: Close the Book on It!

Preparing Your Books for the End of Year Close

‘Tis the season – the season when nonprofits everywhere start thinking about year-end close. This year, vow that you’ll do all you can to smoothly and efficiently close the books with minimal stress to your accountant. Accountants everywhere thank you.

In all seriousness, there are many reasons why doing a good job preparing your books for the end of year close is important. Without closing your books for the year, you’ll have no idea if your nonprofit was profitable or not. Closing the books and reconciling them means that you’ve tallied up everything for the end of the year, put a period or end point on it, and start with a fresh slate in the new year.

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Closing the accounts for the year reset the revenue and expense lines to zero. These ‘temporary’ accounts are now ready for the new year, a clean slate, and a new eye to profitability. Without closing your books, you’ll have a muddle of data to assess, and you won’t get a clear picture on how well your organization achieves its financial goals during the year.

Accounting for Nonprofits: Tips for Success

There are certain steps you can take to successfully close your books for the end of the year. This includes:

Keep your accounts updated: Schedule time monthly to reconcile expenses and income. If you let it all pile up to the end of the year, it will feel overwhelming. There’s also more of a chance to make mistakes and forget items.
Create a checklist: A detailed and thorough checklist that details every step for your year-end close is a helpful resource. Such a process can guide you through the close out each year and save time.
Ask questions during the year: Hopefully, you have a great certified nonprofit accountants to work with, someone who knows your nonprofit and is open to questions. Don’t let questions delay your routine accounting practices. Ask questions throughout the year so that you don’t let mistakes proliferate.
Schedule plenty of time for your audit: Dovetail your end of year close with audit prep, but leave plenty of time for your audit. By doing both at the same time – audit prep and end of year close – you’ll be well-prepared for the new year.

Pay Bills, Lower Receivables

Another useful end of year task to tackle before reconciling and closing your books is to pay off any outstanding invoices so that you carry fewer into the new year. You should also review your accounts receivable file, and attempt to collect any past due invoices. You can certainly carry these over, but it is always a good idea to avoid open receivables. The fewer receivables you have, the more income your nonprofit has at the ready.

While closing out your books may not be top of mind as you celebrate the holidays, tackle the tasks early enough in the month so that you can get them done while people remain in the office. Note when your accounting team may be taking time off to travel or celebrate the holidays, and work around their schedules. You can complete your end of year close with plenty of time to enjoy the festivities of the season.

Beck & Company

Beck & Company provides nonprofit accounting and audit services in Washington, D.C and Virginia. Founded in 1987, we specialize in the world of nonprofit institutions, helping them to navigate the complex world of finance and accounting. Our services are always personalized, and cost-effective for your institution. We welcome your inquiry or call. Contact us today or call 703-834-0776 x 8001.

Considering the Cloud?

Here’s What Nonprofit Accountants Need to Know about Cloud Computing

Many nonprofit accountants continue to be reluctant about switching their files and systems to the cloud. Cloud computing uses shared servers and hardware, rather than servers and hardware located in your physical office space, to store files and run programs. Cloud programs are accessed through secure web-based portals, making it appealing for companies with a mobile workforce or who work from client sites frequently.

Concerns about switching to the cloud range from security concerns to cost concerns. Advances and changes in computing often come with some anxiety. Accountants who, in times past, purchased new hardware and upgraded their programs annually, suddenly find themselves considering site licenses, monthly or annual fees, and new business considerations related to cloud computing. It’s definitely a shift in how organizations think about their technology needs and roll out tech changes.

Dispelling the myths surrounding cloud computing can help you feel more confident as you consider the options. Cloud computing is now ubiquitous in many industries, and nonprofit accountants are catching on to its many benefits.

Cloud Computing Concerns

First, let’s address typical concerns shared by nonprofit accountants regarding moving to the cloud.

Security: Many fear that because public clouds, or the typical cloud solution embraced by the average organization, aren’t as secure as paper-based files or networks housed within their physical office. Consider your current security situation for your files. Are valuable files backed up on your server? If so, where are the backups housed? Do you lock your file cabinets, and are they located in rooms with locking doors? Many offices use convenient central files that, while they take up less space and make it easier for workers to access, are by no means as secure as the company assumes. Cloud security, on the other hand, is usually top-notch. Because the companies providing the cloud invest heavily in security, they can afford the best and are constantly updating and upgrading their technology. They may still be breached or hacked, but they are probably more secure than what you are currently using.
Costs: Cloud costs may be confusing at first, but they tend to be less than what you would spend on upgrading your hardware. Many cloud solutions provide a monthly fee with an annual subscription that offers significant savings. If you amortize the cost of hardware and software investments in the past, cloud computing tends to come out ahead in terms of cost savings.
Mobility: Many nonprofit accountants take work home, especially during busy times of year such as end of quarter and the spring run-up to tax season. Cloud computing is mobile, and can be accessed anywhere you have a web connection. This makes it easy to log on from home, complete your work, and access it again from the office the following day. If you travel frequently, or work onsite at a client’s location, you can also access all of your files no matter where you are.

Choosing a Cloud Vendor

As you can see, the cloud offers many advantages for nonprofit accountants. If you are considering a cloud vendor, review several to find the best match for your requirements.

Check references and delve into the vendor’s reputation.
Request data on downtimes. How does the vendor handle outages and problems?
Do they have someone available 24/7 to help you by phone, email or chat, or do they limit communications?
Who owns the data?
Do they own their own server or rent space from another company?
What support and backup do they offer? How frequently is data backed up, and what are their recovery plans if data is lost?
What security do they have in place?
What is the cost and contract terms?

Cloud computing offers exciting opportunities for flexibility, cost-savings and security. Moving to the cloud is usually a smart choice for nonprofit accountants.

Beck & Company

Established in 1987, Beck & Company is a group of Washington DC and Virginia Certified Nonprofit Accountants. Our services are personalized to your organization’s needs. We provide independent auditing, accounting, tax services, and consulting to help keep your organization’s finances running smoothly. Contact us today or call 703-834-0776 x 8001.

Reacting to the Unexpected: Filling Senior Accounting Roles

It’s the phone call nobody wants to receive: a senior level staff member at your nonprofit organization has a personal emergency or has fallen ill and is in the hospital. Not only are you worried about them, but you’re also worried about fulfilling their obligations in light of an impending annual audit or year-end close. There’s a lot to do and you’re short a critical staff member’s talents.

While your team member is recovering or dealing with personal issues, you can fill that vacancy in several ways. The first thing to remember is that no matter how stressful things seem, there’s always a way to solve a problem. You can’t replace someone, but you can fill a vacancy.

Replacing Senior Financial Positions

Your organization’s controller, chief financial officer, or other senior-level accounting or finance person is likely responsible for many tasks. She is responsible for overseeing the accounting and finance teams, for apportioning funds, and for general fund accounting. She may be responsible for investments and for leading the end of year close or audit. All of these tasks are vital for the health and well-being of your organization.

First, decide how long you’re going to need someone for the temporary vacancy. If it’s just for a few days, someone from within the department is likely able to step in and lead open projects. If it’s weeks or months, however, you’ll need something more permanent to keep the work moving along.

Consider whether or not a consulting firm can fill the gap. Consultants offer many advantages over temporarily replacing an open position. A consulting firm can offer expert advice and insights that not only help you over the current bump but may provide long-lasting benefits for your organization.

You have several options to fill the gap left by an unexpected vacancy. You can:

Temporarily promote from within: Is there someone on the current team who can step into the role, even if it’s just temporary? Often you’ve got a star player already on the team who understands what needs to be done and who can lead the charge. Look within first to see if anyone fits the bill.
Work with a placement firm: Some placement first specialize in filling temporary finance positions. These firms screen senior and mid-level executives for you, and can find a consultant to fill the role. It may take that person a few days to fully understand the organization, and there may be cultural gaps as they learn the ropes at your nonprofit, but this can be a good measure if the position will be vacant for several weeks or months.
Hire a consulting firm: Firms such as Beck & Company can step in and lead the team temporarily. We can help you prepare for end of year close, a nonprofit audit, or an upcoming board meeting. We work as business consultants as well as accountants and have a team of CPAs, financial and business experts in the nonprofit world, ready to work with you.

At Beck & Company, we can help you get back on your feet when an unexpected vacancy stops progress on accounting and business projects. We can help you sort through the stress of an impending audit or help you figure out what needs to get done. Our consultants specialize in the world of nonprofits. We provide independent auditing, accounting, tax services, and consulting to help keep your organization’s finances running smoothly. Fund accounting is just one of our many specialties. Contact us today or call 703-834-0776 ext. 8001.

Keeping the Cash Flowing and Other Nonprofit Woes

Living hand-to-mouth, or living one step ahead of the bill collector, is something most college kids are chided about when they graduate and take their first job on the corporate ladder. Yet many nonprofits are living “hand to mouth” or waiting for the next fundraising event or donation campaign to make up for significant shortfalls in their cash flow.

If that just described your nonprofit, it’s time to take action. Just like newly-minted college graduates can only live on Ramen noodles and a weekly paycheck for so long, you’ve got to put aside a nest egg to carry your organization through the lean times.

No matter how good you’re doing now, lean times will come. They may come because of lowered donations or not winning a grant, or they may come simply because your constituents’ needs burgeon beyond what your current operating budget can sustain. That’s when having money set aside can be a lifesaver.

Five Tips for Corralling Your Cash Flow

If it’s time to corral your cash flow, these five tips can help you regain control and manage it more effectively against the proverbial rainy day.

Balance sheet management: A strong equity-to-debt ratio ensures that you’ve got enough cash on hand to safeguard your organization during lean times. If the ratio favors debt to equity, work on bringing it back into balance or slightly tipped to the equity side of the equation.
Avoid unnecessary debt: Debt, such as credit card debt or loans, can be used strategically to offset larger purchases. But don’t get into the habit of taking on large debts while waiting for more money to come in. That grant you’ve “always” gotten may not be awarded to you this year, or a charity fundraiser could be cancelled due to a snowstorm or hurricane. Smart use of debt may mean funding a large purchase with a loan or a no-interest credit card payment, for example, that lets you pay the principle off without interest or penalty.
Consider leasing major equipment: If your nonprofit regularly buys vehicles for its use, consider leasing them. The cost of the lease can be written off and you won’t have expensive payments to make to own something that depreciates in value. Other equipment such as office furniture, copiers and computers can also be leased.
Embrace the cloud: Cloud-based software can save an organization a great deal of money, which puts cash back into the cash flow. Cloud software uses rented or shared server space with other companies. You can renew licenses on a monthly or annual basis, and you don’t need to invest in costly upgrades or updates. The information saved to the cloud is also accessible for others in your organization via a web-based interface making it easier to share. It saves you money while enhancing productivity, two great strategies for improving cash flow.
Avoid taking on new projects until you’re sure you can afford them: That’s easier said than done for many nonprofits. The need is great, and the resources to serve that need may be small. But if you take on too many new projects too soon, without capital undergirding those projects, you could be headed for trouble. Instead, set aside money for specific capital campaigns such as building funds or new projects so that the money is earmarked for the intended purpose without taking it from the general cash flow.

Talk to your accountant or a business consultant such as Beck & Company about other strategies to improve your nonprofit’s cash flow. You can’t always rely on this week’s income to pay next week’s debts. Some weeks your donations will be up, some weeks they will be down. But with the right cash management strategy, you can be assured you’ll always have enough on hand to pay the most important bills first.

Beck & Company Certified Public Accountants and Business Advisors

At Beck & Company, we know that earning a margin means achieving your mission. Managing your money so that you can continue to do the work of your nonprofit is our primary concern. We work with nonprofits to help them with their accounting and business planning needs. Contact us today for more information, or call us at 703-834-0776.

Operational Efficiencies and Achieving Your Mission: The Hidden Link

The business side of nonprofit management sometimes gets short shrift among those actively working to achieve your nonprofit’s mission. Those working on the front lines, or on projects directly supporting the mission, may look askance at those whose sole focus is back-office operations and organizational efficiency.

Yet those who focus on operational efficiencies and productivity in the nonprofit workplace are supporting its mission in many important ways. Without someone paying attention to operational efficiencies at a nonprofit organization, precious resources may be spent unproductively.

The Importance of Operational Efficiencies

“Achieve the mission” is usually the rallying cry of the nonprofit organization. Your nonprofit’s mission may be tied to healthcare, education, animal rights, the arts, or helping industry professionals network. No matter what its mission, the growing need for services, combined with the rising costs of providing those services, means that every resource at your organization must be used as effectively and efficiently as possible.

Enter the office people: the folks from your accounting, finance, human resources, sales and marketing areas (if you’re lucky enough to work for a nonprofit large enough to have people dedicated to each of these areas and not wearing multiple hats). These are the people tasked with making sure that those precious resources such as donations, grant money, membership fees, dues, and fundraising monies are spent in a wise manner. They’re tasked with finding ways to improve how your organization does its much-needed work without sacrificing the quality of that work.

If it seems like a big job, it is. Fortunately, there are ways to help improve operational efficiencies without extreme measures.

Improving Operational Efficiencies: Three Tips

Although specific people in your nonprofit may be tasked with improving operational efficiencies, everyone within your organization plays an important role. The following tips may encourage everyone to find ways to work better, faster, and smarter.

Share resources: Share resources, people, and time with other departments. Avoid the “silo” mentality, which forms walls or barriers around your group to keep information and resources in the group instead of sharing with the broader team. The more you can share, the more efficient your organization will be. Shared resources and talents save money by adding value or solving problems that a single person may struggle with.
Embrace mobile technology: Smartphones and cloud-based business systems are two ways in which you can make it easy for your team to work wherever they are. If they’re traveling, at an event, or at home, they can still respond to inquiries, handle work, and access company information. It makes for a much more efficient system than older site-based software and resources.
Reduce unnecessary travel: Take a long, hard look at your organization’s travel schedule and budget. Do you really need to attend that many trade shows, conferences and events? Face-to-face team meetings can be replaced by video conference, conference calls, or shared documents. With so many options to work easily from a distance, the need for travel should be reduced. Save travel budgets for the most important things that can only be accomplished in person, and reduce costs whenever possible in your travel by staying at inexpensive hotels, limiting meal budgets, sharing taxis, and other cost-saving measures.

Operational Efficiencies Enhanced by the Right Software

We mentioned cloud-based systems as part of operational efficiencies, and they remain an important and accessible path to improving access, communications and collaborations for nonprofits. The right software solution for your nonprofit organization can make it much easier to track expenses and income and make sure the two are balanced appropriately. Making margin enables you to fulfill your mission, and that’s important for any organization. With the right software in place, improving operational efficiencies is a lot easier.

Dive deeper into nonprofit software and attend this webinar “Not Your Mother’s Chart of Accounts—Leveraging Cloud Technology for Nonprofit Accounting.”

Beck & Company Certified Public Accountants and Business Consultants

At Beck & Company, we believe that technical experience must be matched with a service mindset for the best customer experience. We offer consulting, seminars, workshops, and accounting services for the nonprofit industry. For more information, contact us online or call 703-834-0776.

Training Your Team for Fund Accounting Systems: Tips for Successful Implementation

It’s go-time, and your staff is excited about the new fund accounting systems you’ve put into place. But wait: before launching the new system, have you made plans for training everyone on how to use the new fund accounting system?

Training, it seems, is often an afterthought when it comes to new software launches. Managers, IT staff, and everyone involved with selecting, implementing and using the new software should be involved in the training. Here’s how you can learn from adult educators on the best ways of engaging users in your new fund accounting system.

#1: Sell the value.

Even before you invite the team to a training meeting, you need to ‘sell’ them the value of the new software. Unlike children, who learn out of curiosity or obedience to authority, adults learn best when they perceive the personal value of anything they are expected to learn.

The staff of your organization must know right from the start why you’ve chosen the new software and why this particular product from among many fund accounting systems. How will it help them with their daily work? Will it solve problems, increase productivity, work smarter or faster than what they’ve used before? It’s only by answering these questions upfront will you grab their attention for further training.

#2: Keep training sessions focused on what users need to know.

Users need to know precise information to help them do their jobs well. They don’t need to know the history of the product, or the bells and whistles that so excited your CEO. They want to know now how to use it to do their jobs better. Focus your training on immediate activities the group can do to use the new software.

#3: Use it or lose it.

Another truism with adult learners is that they must use their newfound knowledge immediately or else it is forgotten. Adults need to use new skills repeatedly in order to keep them fresh. Schedule training sessions with the new fund accounting system where users actually bring in their projects and work so that the training can focus on job-related skills, and users can ask questions while actually using the system for real work.

#4: Customize vendor trainings.

Vendor trainings can be a great asset, but you may need to customize a vendor training session to your organization’s needs. You know your team. They may respond best to written materials, hands-on demonstrations, or simple verbal instructions. Work with your software vendor to tailor training needs to your team.

#5: Schedule follow up.

Many training programs fail because trainers pour information out and then leave without follow-up. Users leave the session invigorated and excited, but stumble using the new system when they return to their workplace. To keep the momentum going after training, schedule follow-up meetings a week or two after the initial training. Invite users to bring questions to the meeting so that you can help them use the system to its fullest.

Ready for New Fund Accounting Systems?

At Beck & Company, we understand the unique needs of the nonprofit sector. Our CPAs and consultants have been assisting nonprofits since 1987 with their accounting and operational needs. If it’s time to implement a new fund accounting system, please contact us for assistance. Call 1-703-834-0776.