Nonprofit – Page 3 – Beck & Company

Hints and Questions to Consider when Choosing a Tax Advisor

Finding the right tax advisor can have a significant impact on your organization. Working with the wrong advisor can lead to a litany of issues and hassles, resulting in additional work and unnecessary headache for your board of directors. However, finding a tax advisor that is the right fit for your organization can save you time, and ultimately – money.

Here at Beck and Company Certified Public Accountants and Business Advisors we are experienced and qualified to help your organization with their tax preparation and can offer further advice on securing a tax advisor as well. Learn more about our tax service offerings here.

Whether you choose a Beck and Company CPA or someone else to serve as your tax advisor, keep the following hints in mind when choosing the right tax preparer or advisor to do your taxes. Finding an advisor who is truly committed to your business success is absolutely paramount. Selecting the right advisor should be a process not unlike selecting a full-time employee who’s the right fit for your organization. These hints are intended to help you to secure the right person with the right intentions which will ultimately save you from major headaches down the road. With that in mind, consider the following:

Helpful Hints When Choosing a Tax Preparer/ Advisor

Use a reputable tax professional who signs the tax return and provides a copy.
Consider whether the individual or firm will be around to answer questions about the preparation of the tax return months, or even years, after the return has been filed.
Check the person’s credentials. Only attorneys, CPAs, and enrolled agents can represent taxpayers before the IRS in all matters, including audits, collection, and appeals. Other return preparers may only represent taxpayers for audits of returns they actually prepared.
Find out if the preparer is affiliated with a professional organization that provides its members with continuing education and resources that also holds them to a code of ethics.
Be cautious of tax preparers who claim they can obtain larger refunds than other preparers.

Don’t rely on these hints alone, you will also want to be sure to interact with and communicate with three or four options in tax advisors before making a final decision. When you interview, consider the following questions to ask. Their answers will offer guidance and insight into your ultimate tax advisor selection. In addition to these guiding questions that are found below, a few key qualities you should discuss during an interview are availability, qualifications and experience, client longevity, and price.

Questions to Ask when Choosing a Tax Advisor

What is the candidate’s educational background? Do they have an advanced degree?
What qualifications does the candidate have?
Do they have expertise in areas relevant to your organization?
How long has the candidate been doing tax advising?
Do they have any licenses? If so, which licenses do they have?
Will he or she provide at least three references of current clients?
Have they been cited by any professional or regulatory body for disciplinary reasons?
How and what do they charge? What fees will they charge?
Do they provide ongoing reviews and planning strategies for you?
Will they represent you if you are audited?
Are you comfortable with your prospective accountant/ tax advisor?

There is not a one-size fits all answer to the above questions. Rather, there will be a right answer for your unique situation and needs. The best advice we can offer is to be diligent about doing your research. This will provide you with the information you need to make an educated decision when it comes to choosing a tax advisor. For more information about the process or to find a tax advisor for your organization, contact us here at Beck and Company CPAs.

Preparing Your Nonprofit for Tax Season

The onset of Tax Season often creates stress and worry, particularly for nonprofit board members and responsible parties. The gathering of documentation, sorting through expenses and receipts, understanding tax laws and changes, etc. are reason enough for this anxiety. Particularly if there is disorganization or lackluster record keeping.

We understand that filing and preparing to file taxes can be challenging; that is why we’ve provided several tips to ease the burden of tax preparation and ensure that you make the April 15th deadline. Keep the following in mind as you prepare for tax season (and remember to practice your deep breathing):

Always separate personal and organizational expenses.
The Internal Revenue Service (IRS) keeps a close eye on personal expenses that could be claimed as organization expenses (such as using a vehicle for personal reasons). Protect yourself by maintaining separate bank accounts and credit cards for your expenses. Maintain good records to back up your claims. If the IRS does inquire about a particular expense, you will have the information you need to substantiate your claims.

Maintain good financial records year-round and research available deductions.
Proper record-keeping is crucial to ensuring that your taxes are filed accurately. Be diligent about maintaining your records all year so when it comes tax time, you have everything you need to file confidently. Make sure to save all essential paperwork that may be needed to back up deduction claims in the event of an audit. Remember that tax credits and deductions change each year, so be sure to stay up to date on the latest information.

Take advantage of the tax credits within the Affordable Care Act.
According to the Council of Nonprofits, your nonprofit organizations may be able to take advantage of the same tax credits as small business. This credit will cover up to 50% of the health premiums you pay to cover your employees.

Avoid common audit traps.
It’s important to know the red flags that may capture the IRS’ attention. The IRS commonly targets certain types of nonprofits for special scrutiny. In the past, these have included:

nonprofits that conduct gambling fundraisers
nonprofits engaged in joint ventures with for-profit companies
nonprofits that sponsor travel tours
credit counseling agencies
donor advised funds
hospitals
colleges and universities
community foundations
nonprofits engaging in political activities
student loan organizations, and
nonprofits that fail to file required IRS returns.

If your organization falls under one of these categories you will want to make sure that you have the evidence to back up your claims.

Here at Beck & Co. we understand that preparing your taxes can be daunting and overwhelming. In fact At Beck & Company we specialize in nonprofit accounting and auditing. If your organization could use some guidance in this area, let us help. We have a team of experienced accountants and CPA’s that can assist you in making sense of tax regulations and avoid common mistakes and audit traps. Contact us to learn more about these services and how we might be able to help.

Is My Nonprofit Organization Susceptible to Fraud?

It is hard to believe that an organization dedicated to improving society and filled with well-meaning, hard-working people would be susceptible to fraud. However, even the most well-meaning nonprofits can find themselves in financial hot water.

All too often, when financial issues arise, there is a temptation to mask them. This can be particularly tempting for nonprofit managers. One reason for this is that federal law only requires nonprofits to report financial inconsistencies which are over $250,000, or five percent of the organization’s annual gross receipts.

Sometimes, by the time a nonprofit realizes their misappropriation of funds, they find themselves at risk for losing significant amounts of money should they choose to come clean. Here are two things to look for that could indicate you may be experiencing some financial irregularities.

1. Financial statements are difficult to obtain. Most healthy nonprofit organizations are financially transparent. Stakeholders and constituents should have unfettered access to financial numbers. In fact, certain documents should be available at all times for review such as:

• Bank Statements including all cash balances

• Accounts Payable reports showing money owed to vendors. You will want to ensure vendors are being paid in full and on-time. Any issue here could mean financial fraud.

• A report showing credit lines with the amounts borrowed.

• Accounts receivables reports.

• A list of fixed expenses.

2. Income and cash flow statements as well as balance sheets should be automatically sent to stakeholders on a monthly basis. It is important to read these reports and have an open line of communication should anything seem out of place.

One of the best tools you have is to be proactive in mitigating financial fraud risk. You can conduct a fraud risk assessment by creating a risk map and linking it to your internal controls. Ensure your internal controls are being followed, and test their functionality. Arm your staff with training so that they can become aware of things to look for that may be fraudulent activities.

Organizations with fewer employees oftentimes have less segregation of duties with fewer internal controls. Having a smaller staff often leads to closer relationships and trust, which can create a false sense of security. There are ways to protect a small organization to mitigate their risk. Creating a fraud prevention environment with the following tools is a great start.

1. Use an accounting software solution. Utilizing accounting software can mitigate fraud risk as it automates transactions, provides user security levels, and creates an audit trail and Internal Accounting Review.

2. Conduct employee background checks.

3. Ensure the senior leadership reviews the monthly bank statements. This provides a level of accountability as well as mitigating check tampering.

4. Look for missing or altered checks–anything signed by an unauthorized individual or other inconsistencies.

5. Payroll oversight. Centralize the payroll program in order to eliminate “ghost” employees, which could be fictitious persons on the payroll.

6. Ensure compliance to internal controls.

7. Offer fraud prevention training. Remember, by nature, fraud is hidden. There are no 100% solutions to avoiding fraud. Research has shown that one of the most important deterrents to fraud is “tone at the top.” Management’s stance on ethics has a direct effect on employee behavior. The first goal is to prevent fraud, and the second is to catch it as quickly as possible.

Beck and Company Certified Public Accountants and Business Advisors are here to help. We are passionate about helping nonprofits get their financial reporting in order so that they can reduce the risk of fraud. Learn more about all of the nonprofit services we offer in addition to auditing services. Contact us to lo let us know how we can help your organization with financial services, internal audits, and other services to keep your finances in check and to prevent fraud.

What to Look for When Preparing Financial Statements for a Nonprofit Audit

There are a number of steps your nonprofit can take to ensure you are prepared for a smooth audit. One of those things is collecting necessary documentation and getting them ready for the auditors. Unfortunately, this can take days, weeks, even months. Creating an audit process can ease the burden of preparing for an audit and buy back valuable staff hours. With time saved, you can spend your time on what’s most important to your nonprofit organization.

It is a risky effort to attempt to gather information from a variety of disparate sources and systems. Working with data stored in too many different systems typically creates inconsistencies in reporting and makes it very difficult (if not impossible) for an auditor to follow audit trails and replicate reports on a consistent basis.

In the long run, disjointed and inconsistent reporting and data can cost your organization money, extend audit time, increase risk for mistakes, and raise possible compliance issues for your organization. Worst of all, a troubling or failed audit can put an organization at further risk of losing important board and donor trust.

It is possible to avoid this nightmare by being proactive. Better non-profit financial management, tracking, and reporting across the entire organization that ensures you’re always audit-ready is just a few steps away. Take a good, hard look at your accounting software to ensure it’s built to meet the needs of your nonprofit organization and offers true fund accounting capabilities.

Ask yourself:

• Does my current system provide the flexibility needed in the chart of accounts?

• Am I able to track and report out on spending and revenues associated with each of our programs? How much time am I spending in my current system to do so?

• Could my auditor easily review the creation and approval process of any requisition in my system?

• Does my current system allow me to track and allocate revenues and expenses to the right funds?

• Can I be sure that I have maintained financial data that allows me to easily prepare recurring or ad-hoc reports for internal audits, external audits, or board member reviews?

• Do I seek to show accountability and transparency through reliable data and consistent reporting?

When dealing with public funds, accountability and transparency are critical. Organizations have to be able to account for every dollar or risk losing trust from donors and constituents. But, if your reports aren’t consistent, at best it may show an apparent lack of oversight. At worst, your auditor may determine the financial health of your organization is at risk.

An organization’s inability to accurately and consistently produce financial statements and reports that are the same EVERY time is problematic. If you and your team cannot consistently duplicate reports, neither can your auditors.

The risk for exposure is tremendous and can lead to a lack of apparent oversight for the handling of finances, increased potential for mistakes that can cost time and money, misrepresentation or inaccurate portrayal of the organization’s financial health, and greater exposure to potential fraud.

Follow these steps for better nonprofit financial management, tracking, and reporting across the entire organization.

• Take an honest assessment of your current accounting software:

Does my software offer true fund accounting capabilities?

Does my accounting solution offer access to a custom report writer and standard reports that are designed for nonprofits?

Can I produce reports consistently and accurately each and every time with little to no fuss?

Can my auditor easily recreate reporting to ensure accuracy in our organization’s financial statements?

Ensure you can produce financial reports that are accurate, timely, in context, and readily available on a monthly or quarterly basis. They should include a configurable chart of account, year-end donor summaries, and other standard reports.

Evaluate your ability to create reports that match the purpose. Most boards look at financial reports for these reasons:

• To comply with financial standards

• To evaluate effectiveness

• For forward planning

These tips for preparing for an audit will make the audit process more successful and smooth. To find the right auditor for your organization and take advantage of the many audit services Beck and Company Certified Public Accountants and Business Advisors provide, contact us.

Best Practices For Planning Your Nonprofit Budget – part 2

Having a budget is essential for any company or individual who desires to have better control over their finances. The process by which that budget is developed is also important. Last week we looked a few overarching components that are essential to have in place before you begin the budgeting process. This week we will take a deeper look into key documentation and steps needed to complete the budget process.

Keep in mind that your organization’s mission and vision should drive the budgeting decisions along with fiscal accountability. A great budgeting process will include the input of those ultimately responsible for executing the company’s mission in conjunction with the finance team and senior staff. Identifying fixed costs and known revenue along with incorporating a plan for the year’s initiatives will be the primary data used to get started.

Follow these steps to develop a good budgeting process:

Document the process.

Put your budget process in writing. Doing this creates a measurable tool to reference as you go along. Having steps and checklists will keep the team accountable and productive throughout the planning. Additionally as the process evolves and changes from year to year, be sure to maintain current notes for reference in future planning seasons.

Identify stakeholders and assign the planning committee.

The finance team and senior staff will naturally play a significant role in developing the budget, but additional staff members whose responsibility is to be accountable to the budget should also play a role. Inviting the team to weigh-in builds buy-in and allows relevant feedback which could prove invaluable to creating an accurate budget. At minimum be sure to include a time period where other staff members are asked to review and speak into the budget in the draft stages.

Get out the calendar.

The early bird gets the worm – this is true in establishing the budget as well. Having a budget approved less than 30 days before the beginning of the fiscal year could severely compromise the success of the year’s goals. At the very least aim for budget approval 60 days before the new fiscal year begins and if possible complete it even earlier. Consider your natural rhythms and take advantage of non-peak seasons to work on it when staff and volunteers have ample time to focus on the numbers.

Assign tasks and a timeline.

As you are building the budget process define tasks and assign deadlines. Oftentimes multiple people will have responsibility over a line item – regardless you want to choose one person to be accountable for the task. Having a single person responsible for the task will increase the likeliness of it getting done and on time.

Match the financial statement to the chart of accounts.

Ensure that line items from the financial statements and charts of accounts are the same. This will eliminate guesswork from your administrative staff when matching the budget and actuals. Particularly where expenses are concerned when the financial statement does not have a corresponding line item within the budget it can result in mistakes or overages in line item balances.

Work the plan.

After carefully creating the detailed budget, the next step is to implement the plan. This may sound obvious, but setting clear expectations for how the budget should be executed is as if not more important.

At Beck and Company Certified Public Accountants and Business Advisers our Nonprofit Services team is committed to assist you with your back-office accounting and financial needs so you can focus on your mission. Contact us to learn more about our nonprofit specialists provide professional advice and assistance in a number of areas including business planning and budgeting.

Best Practices For Planning Your Nonprofit Budget – part 1

Top performing nonprofit organizations large and small have one thing in common, they are continually planning for their success. Creating a budget is a huge part of a successful plan, and it’s a tool that aids in the implementation of your organizations mission. When both management and your board of directions have this tool they are able to sufficiently oversee your organization’s financial health.

Having an operating budget approved in advance of the beginning of the fiscal year is a common best practice. Often times, in order to achieve this goal you must begin the process at least three months prior to year-end. In this blog we will address some general tips to help increase the effectiveness of your budgeting process. If you’ve already begun this will be a helpful tool to measure your current progress. For those of you that have yet to get started, now is a great time to begin.

Having a budget that actually works requires a little time and energy devoted to development and implementation and should include the following components:

Clearly defined and itemized objectives:

Most likely you have multiple projects and programs planned throughout the year. Each one should have its own budget and then once those have been completed, they should be compiled to complete the overarching operating budget.

Having defined budgets for each project allows you to see areas that may require additional consideration so that you can fully understand the financial implications of each objective and how it works together with the overall goal of the organization.

Clearly defined time period.

Although your budget will likely cover a one year period or fiscal year it is also helpful to further divide the budget into smaller portions such as months or quarters. In so doing, you will have the ability to be proactive with any variance as the year goes on. If you find yourself overspending in a particular quarter you will have the benefit of making necessary adjustments in the remaining quarters. This also provides you with a great tool to reflect on at years end and use to strategize for the future.

Realistic expectations.

Having a realistic estimate of revenue and expenditures is so important. All too often, expenses are underestimated which leads to overspending and improper allocation of resources. When this happens the budget fails to be a useful tool for your organization. Be sure to use last year’s actual numbers coupled with future predictions. Take the time to truly analyze expenses and income to help you create a budget that is based on realistic expectations rather than assumptions.

In addition it can be helpful to have a plan “B” with your board of directors in the event that something does not go according to plan you know exactly how you will handle it. For example, which initiatives can be bumped to next year or executed using a smaller budget.

Measurable goals.

Create your budget based on the same accounting method with which your books are kept and monitored. Doing so allows you to compare the predicted budget against actual income and expenses as they happen. When variances arrive, which is inevitable you must have the flexibility to make adjustments and address cash shortages and/or inflated expenses. Maintaining your budget this way will allow you to assess and correct your budget as needed, while flexibility will enable you to alter your budget when necessary.

At the end of the day the most important part to planning your budget is to ensure that you were able to move forward the mission of your organization. Keeping these helpful tips in mind as you begin the budget planning process will set your organization up for success.

In our next blog we will get into the budget process in further detail. Here at Beck and Company Certified Public Accountants and Business Advisers we are committed to assist you with your back-office accounting and financial needs so you can focus on your mission. Contact us to learn more about our planning and budgeting services.

Nonprofits Can Reap the Benefits of Cloud Computing

Miriam Webster defines Cloud Computing as the practice of storing regularly used computer data on multiple servers that can be accessed through the Internet. Contrary to popular belief this isn’t a new concept at all. In fact, the idea to combine hardware and software as a service dates back to the early 1960s. And the reality of such a service exists today. Cloud accounting is another tool for nonprofits to take advantage of as they pursue the vision and mission of their organization. Cloud computing can help by streamlining processes and making information readily available to its users.

Businesses are looking to the cloud to drive business transformation across the enterprise. They are looking for new ways to engage their clients in a digital economy and new ways to engage their employees to increase productivity and employee satisfaction. Employees today expect a mobile enabled work environment to connect with their digital savvy customers. Take a look at some of the many benefits of cloud computing for nonprofits.

Utilizing cloud storage saves time and money enabling you to grow as fast as your business without leaving you with the expense of equipment and staff in a downturn season.
Centralized access to data and reports means more efficient processes, easier telecommuting and less time wasted waiting for information stored on an individual’s hard drive
Ever changing technology mandates a sizable budget towards upgrades and repairs which can be avoided with cloud computing services
No more concerns about storage space or capacity with almost unlimited amounts available on the cloud
Rest assured that your data is backed on the cloud. Additionally your service provider will be skilled enough to handle recovery of information
Handpick the services that you need and don’t worry about software integration as this generally occurs automatically on the cloud.
No waiting! Cloud computing offers quick deployment once you decide to move in this direction.

Another benefit to moving to cloud technology is the flexibility to take on new projects. The availability of on-demand cloud resources allows new configurations to be set up and running in a matter of hours. And because you are partnering with a service you will only pay for the time that is actually used towards expanding your business tools. We know the biggest drawback to taking ground in a new territory is time and money, or the lack thereof. However, on-demand cloud resources could be the key to unlocking doors for your nonprofit.

Benefits aside there are still rainy day risks involved with cloud driven solutions. Confidentiality and security are among the top two risks facing organizations today. Some of this concern may stem from not being able to physically see the machine housing your data. In order to mitigate the risks be sure to do your due diligence when selecting a service provider. Be sure of their use of security tools including virus and hacker protection. In addition, hesitation may come from fear of change to well-known processes. Remember vision leaks. Communicate the benefits of the transition to the team – specifically time saving benefits such as fewer hours spent commuting to the office to obtain files that will be made available at the touch of a button.

As you adopt cloud technology it is important to look at how your business processes and technologies work together to ensure optimal results. Here at Beck & Company’s Certified Public Accountants and Business Advisors we want to help you succeed. Contact us today to see how a cloud computing solution can help advance the mission of your nonprofit organization.

Top 8 Reasons To Take Your Nonprofit Budget To The Cloud

Do you pull your hair out at board meetings trying to read the tiny print on an overpopulated excel spreadsheet? Do you dread the line item on the agenda dedicated to budget? You are not alone – many board members find this task frustrating as they try to make sense of poorly managed Quickbooks reports and line items that just don’t always make sense. It can be difficult to even discern if a budgeted line item is actually financially healthy for a nonprofit. These types of budgets fail to be useful as an ongoing solution.

While it may be frustrating it is required by the U.S. government to keep an approved annual budget on file. And, that budget must then be reviewed at monthly board meetings. Although it may feel like the rule exists to frustrate and confuse you it is not. Having a working, well developed and managed budget provides tons of important values to your nonprofit – particularly when the budget process is simple and user friendly.

If you’re like most nonprofits the members of your board are successful and busy people. They believe in your organization and want to contribute their unique skills to help you accomplish your mission. Imagine the possibilities if those same people could review the budget on an ongoing basis online? They could be empowered to…

Analyze predictions and compare them to actual costs.
Show up to meetings with ideas for improvement.
Spend time on the cause at hand rather than trying to decipher code.

Let’s face it – who wants to spend their precious time looking backwards when you can take steps forward? This is all possible with the right tools and using software designed to help you budget with ease is a great place to start.

Although there are many great online budgeting tools available one solution we have found extremely useful for nonprofits is Adaptive Insights. This cloud software makes it easy to move beyond the spreadsheet nightmare without the cost and complexity associated with traditional applications.

There are multiple benefits we have seen from customers using cloud budgeting software. Below are the top 8 that we wanted to highlight:

Dramatically reduce budgeting and forecasting cycle times-by up to 90%
Simplify and standardize data collection across the organization
Decrease errors and improve accuracy by eliminating broken links and formulas
Deliver more complete and frequent forecasts, including rolling forecasts
Enable timely and thorough what-if analysis
Establish one version of the truth
Make faster, more informed decisions
Enhance collaboration with, and ownership by, department managers

When a person decides to support your business with their hard earned money they most certainly want to know where that money is going. People don’t part with their cash carelessly. Your donors give because they believe in the cause. Being able to show them that their donations served a worthy purpose is essential. When you have a good budgeting tool that is easy to use and organize, finding this information is easy and makes board meetings so much more productive.

We know that implementing new budgeting software can be difficult. At Beck & Company, Certified Public Accountants and Business Advisors, we are an accounting and consulting firm delivering specialized expertise, creative thinking, and unsurpassed service to ensure that our clients’ financial endeavors flourish. We want to see you spend your time where your time is most valuable, working towards the vision and mission of your NPO. Let us help you manage your budgeting process so you don’t have to. If your organization is looking for ways to improve your accounting functions and reduce the time you spend managing your back-office, our nonprofit client accounting services may be the answer. Contact us today for a free consultation and see how we can help you reach your goals.

Managing Talent can Make or Break your Nonprofit

So many internal, external, and societal factors influence the success and failure of nonprofit organizations. It can be complicated to figure it all out and truly determine what will aid in the success of your organization and what can also hinder or harm it. Over the past month, we have taken a close look at four indicators that positively influence success when managed and carried out well. These “4 Ts” of organizational success are transformation, technology, transparency, and talent. Transformation is focused on making changes and staying active in improving the organization. Technology assists in transformation through implementing updated systems that help in keeping pace with modern, business world trends and needed processes. Transparency helps organizations to collaborate better, increase trust amongst stakeholders, improve engagement and service offerings, and enhance efficiency. To learn more about transparency, visit here. For our final post in this series, let’s get a deeper glimpse into how talent and its management is yet another performance indicator vital to nonprofit success.

As Beck and Company’s Certified Public Accountants and Business Advisors, we understand that being successful in transformational practices, technological advancement, transparent practices, and talent management in addition to all the other tasks that need attention as an organization can present challenges to time and money. We are here to help with the financial pieces of these undertakings so you can focus on your areas of expertise in furthering your organization’s mission and success. Learn more about our accounting, controllership, and CFO services for nonprofits here. We can assist you with these important aspects of success so you can focus on the four performance indicators that need your attention and other important tasks.

Why is talent management a top consideration for success?

The reality is that initiatives in transformation, technology, and transparency will all fail without the help of the people that make them possible. Skilled workforces must be developed and maintained. Without the right people in the right positions, achieving success is nearly impossible. Managing talent has the power to make or break an organization. This revolves around the importance of recruiting the best employees, developing them and the talents they bring to the organization (in addition to utilizing those talents well), and retaining them over the long term. An organization must have a good hold on what their current skill shortages are, must be actively seeking this out, and must be constantly in tune to potential skill needs.

What factors should be involved?

When managing talent, it is necessary to explore a variety of factors involved in the process. These include incentives, rewards, and compensation structures. This is complicated by the fact that budgets are always limited. These budget constraints are reality, but they cannot be the sole indicators of decisions related to talent acquisition. As an organization, you must believe in the power of people and that they offer the biggest benefit of all to the organization and do what is necessary to find the needed talent and skills to succeed in the digital age, reward their successes, and retain them over the long term.

The process of talent acquisition starts by taking a look at critical capability gaps that exist in your organization. It also necessitates taking a good look at existing skills within the organization and how to best use those. What should you look for in acquiring leaders and skilled laborers for your organization, both current employees and future additions to the team?

Team building, coaching, and mentoring skills
Foresight and adaptability skills
Operational knowledge of the organization as a whole

Remember that having technical skills alone is not sufficient. Talent must reach beyond skills to attitudes, overall organizational buy in, leadership and people skills, ethics, integrity, and professionalism. Develop internal talent, train staff well, use talent wisely, and create a culture and environment that is positive and has incentives in order to be successful in using and finding the best talent for your organization’s sake.

Contact Beck and Company CPAs to learn more about the performance indicators discussed this month and to find out how we can help in your overall nonprofit success.

Transparency’s Potential for Positive Impact on your Nonprofit

When you think of all of the factors that influence your nonprofit’s success, does transparency come to mind? This may be a more subtle performance indicator than the others we have looked at over the last two weeks, but it is so important. The third “T” in our series about the “Four Ts” or four performance indicators that deserve a closer look as a nonprofit is transparency. Transparency is just one of the four indicators that has the potential to increase and produce greater success while positively impacting nonprofits. To learn more about the other “Ts” we have discussed, visit here to learn about technology and to take a closer look at how it impacts another indicator, transformation.

Is your organization accountable to its stakeholders and providing them with insight into how money is being spent, how decisions are being made, etc.? Does your organization allow its stakeholders and constituents to make informed decisions about the services provided and their quality? Many organizations fail to even view transparency as something that will better decision making. The reality is that this can be achieved if care is taken to present information in relevant and engaging ways instead of by simply replicating internal paperwork.

Beck and Company’s Certified Public Accountants and Business Advisors understand that having the relevant data and accurate information needed to be transparent can be tricky and difficult, especially in small organizations who may not have expertise in accounting and financial practices and are best skilled to focus on the important mission-related work of the nonprofit. Our expertise is in the financial area, and we can help you with your accounting and financial practices through our nonprofit services designed to meet the financial accounting needs of organizations. We also offer audit services to help you with yet another financial aspect of your organization that is essential to its health and transparency—nonprofit audits. Let’s take a closer look at what transparency is all about and how it is beneficial.

What is transparency, and why is it important to nonprofit success?

Transparency is so much more than sharing the latest budget or minutes from meetings. It involves identifying the right sets of data, identifying the appropriate financial and non-financial key performance indicators (KPIs), and acting upon that information to demonstrate how effective a nonprofit organization is at meeting the needs of those it serves. Metrics and measurements must also be clearly communicated to achieve transparency, and this information must be consistent and timely.

The beauty of transparency is the opportunity it creates for true openness. It has many benefits including helping in fostering a culture of collaboration and sharing within an organization and to its stakeholders. At the same time, transparency can increase trust and engagement through true accountability.

Here are five essential benefits of being transparent:

1. Increased engagement- conversations, decision making improvements, dialogue, etc.

2. Enhanced internal collaboration and true openness as a nonprofit staff

3. Improved trust in the organization on the part of its stakeholders

4. Enriched quality of delivered services

5. Heightened operational efficiency within the organization

Beck and Company CPAs can help you in the process of continually increasing transparency, particularly financial transparency, through a myriad of service offerings including accounting services, nonprofit services, audit services, and technology consultation services. Please contact us to let us know what your needs are and to find out how we can assist you in meeting those needs. Stay tuned for the conclusion of our series on indicators that can determine organizational success next week as we look at the last of the four “Ts” that can be strong indicators of nonprofit success—talent.