Who do you turn to when you need to get things done within your company? Some people turn to their supervisors, but they may not always have the answer. The surprising fact is that accountants within most companies and nonprofits are the true “get it done” people.
Let’s face it—nonprofit financial management brings accountants into contact with all departments and people within an organization. Accountants know where the money leads, and they know where to find the funds to support new work. When you need to get something done, it is the accountant who can make it happen.
One skill, however, that many accountants lack and is important to nonprofit financial management and beyond, is project management. Accountants who can learn the terminology, skills, and general flow of projects will be better able to interface with all within an organization.
Let’s look at the basics of project management and how accountants can partner with project managers.
Project Flow in Project Management
Projects have a beginning, middle, and end. At the end, each project creates a unique output. There are milestones throughout the middle of a project that serve as checkpoints to the completion.
As part of nonprofit financial management, accountants help project managers handle the potential changes inherent in any project. As projects progress, budget needs may change. Accountants can assist during the project flow with any change requests and help project managers monitor and adjust budgets.
Project Charter
The project charter is the document that outlines the scope of the project. Some organizations call it a project plan or by another name, but the document itself is similar no matter where you work. It is an outline of what the proposed project should accomplish, starting dates, milestone dates, end dates, who will work on it, roles and responsibilities, and budgetary needs.
Accountants do not typically create project charters. Instead, your role as an accountant is to review the project charter from the standpoint of nonprofit financial management. You can review it objectively and offer advice and assistance to make sure it follows a logical train of thought.
Instead of being a gatekeeper or keeper of the purse strings, you’ll become a partner in the work. You can shape, guide, and advise during the process of creating the project charter so that the team won’t feel surprised or off guard if there are questions surrounding the finances for the project. In turn, they may have questions for you, from which your extensive experience as a managerial accountant may add quality and wisdom to the project.
Managing Risk
Every project comes with its own share of risk. There’s the risk of change, of missing deadlines … the list goes on and on.
Accountants working alongside project managers and project teams can help manage risks by:
- Remaining close to the project: Be sure that someone from the accounting team continues to attend project meetings. By keeping up to date with what’s going on with the project, you can take steps to mitigate risks or to advise the team on how to avoid them.
- Play the auditor’s role: An auditor asks key questions to bring to light things that may not have been recognized. Act like an auditor and ask questions of the team that will help them think through and around issues found within the project. Project managers and department stakeholders can help you understand the pros and cons and ramifications of many changes so you can ask questions that will help them get to the best possible outcome.
- Avoid scope creep: When project managers come to you seeking more funds for an ongoing project, it may be time to examine the original project charter to see if scope creep has set in. Scope creep refers to additional outcomes that get added to an open project so that it eventually blows the original scope out of proportion. The result is a bloated project that may not be able to achieve its objectives. By remaining close to the project throughout its development and action steps, you can help project managers avoid potential pitfalls like this.
Projects vary according to the organization and the task. But one thing doesn’t vary: your knowledge, skills, and experience as an accountant provides you with exceptional nonprofit financial management skills. Partner with project teams for the best possible outcomes.
Beck & Company
Beck & Company is a certified public accounting firm serving the greater Washington D.C. area and the Eastern seaboard. We offer consulting services, auditing, and software selection to help nonprofits with their accounting needs. Contact us today for more information or assistance.