Whether raising funds for your cause or providing services to your stakeholders, every cent counts and must be accounted for. However, just because your team is passionate about the organisation’s mandate, there is no guarantee that the skills needed to meet the financial requirements exist.
With the use of technology being a key focus for many NFPs to streamline operating efficiencies, many are looking to the cloud to expedite their financial management. Xero’s single ledger is a great example of a cloud-driven product that takes the hassle out of managing accounting data.
As experts in NFP accounting, Xero has compiled a list of handy bookkeeping hints that no NFP should be without:
Standardise your system
Keep and use financial reports and systems that can be understood by everyone;
- Implement a standardised format that’s easy to read
- Keep reporting consistent over time so that anyone in the organisation understands and is able to digest the information.
Be transparent with your Board
- Provide Board Members and Senior Managers with insight into the numbers and educate them about how to read financial reports.
Diligence is critical
- No organisation can afford to be sloppy or inaccurate with financial records. Employ an easy-to-use, easy-to-read accounting system to make your finances more manageable.
Budget for administration
- Put together a strategic plan, budget and monitor against it
- Allocate for costs that might not appear to be directly associated with your organisation, including administration, marketing and technology.
- Set aside a portion of funds should an unexpected situation occur.