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Team Welter

Apr 17
0

Expert Tips for Accounting Automation

By | Accounting, Nonprofit | No Comments
person using tablet with accounting software to demonstrate accounting automation

Accounting or finance automation is a term you will see in many places today. Automation does indeed save time and improve efficiency. However, good automation workflows begin with a sound process. Here, we map out the steps to take before you automate your finance processes. If you take the time now to refine your processes before you set up automations, you’ll gain more benefits from automation.

Good Finance Automation Begins with Simple, Effective Processes

Even before discovering which automations are possible in your current finance or accounting software, ask yourself why you want to automate a process. Consider automation when a process:

  • Takes considerable time and effort
  • Reoccurs at regular intervals
  • Follows a logical sequence

Knowing why you want to automate a process starts with such questions. And it’s not just about what you want in your role with the organization—ask what other team members need too. Consider gathering your team and brainstorming ideas around which processes can be automated. Is there one task that takes up a great deal of time for someone? Is it something they must do regularly?

When you have your list of tasks, move on to the next step.

Map the Process on Paper Before Automating Through Software

It is important to map out the process and workflow from start to finish on paper before programming it in your finance system. This ensures that you’ve considered every step and haven’t missed anything. It also gives you time to review the process and make sure it is still accurate and needed. Sometimes, organizations continue to enact processes because “that’s the way it’s always been done.” Forcing yourself to sit down alone or with the team and map it out on paper gives you another opportunity to review the process, make refinements, and reduce the steps, if possible.

List the Processes to Automate in Order of Priority

Next, take the list of processes you’ve created and order them according to priority. Which process, if automated, saves the most time? These should be your priority automations.

Work with the Technology You Have

Now it is time to set up automations. Start with the system that you have. Most finance and accounting systems have at least some form of automation built in. You may need to ask a consultant or find information on the vendor’s website to set up the automations you require.

Do You Need Custom Programming or Replatforming?

What if the current platform you’re using doesn’t offer the automations you need? You have several choices. Exploring custom programming may be a good step if you aren’t ready to replatform or choose new software. While custom programming isn’t cheap, it may be the right solution for your needs if you can quantify the return on investment or ROI.

Some finance platforms offer additional components, upgrades, or add-ons that may provide the tools you need. Work with your technology consultant or software vendor to explore other alternatives. Many companies have invested in automation within their finance or accounting platforms over the past several years, especially as AI has become prevalent. It may be easier for your organization or more cost-effective to upgrade your current platform than to hire someone to build custom code or to switch to a new platform. The last alternative is to move to an entirely different system, also called replatforming. Such a move should not be undertaken lightly. However, if you find that your current accounting and finance software isn’t supporting your organization’s growth or needs, speak with us, and let’s discuss the options.

Automate Processes the Right Way

Automation in your finance and accounting workflow can indeed save a great deal of time and effort. Ensuring that the basic process is sound, identifying the ones that give you the most bang for your buck, and utilizing the software you already have is the right way to proceed with automating financial processes.

Welter Consulting

Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact us for more information.

Mar 20
0

Navigating GenAI: Essential Considerations for Nonprofit Boards

By | Nonprofit, Technology | No Comments
person using computer keyboard with AI overlay

Nonprofit boards must consider multiple aspects of their organizations, from finance to operations. One new area of consideration is generative AI or GenAI. With the breakthrough technology now taking firm hold in the minds of businesspeople everywhere, Boards need to make decisions now to ensure that the platform is used appropriately and ethically in the nonprofit environment.

Here, we have put together a series of considerations based on a McKinsey document by Frithjof Lund and expanded upon by our own insights. What do you think? Drop us a note or a comment and let us know.

5 GenAI Questions Every Nonprofit Board Should Ask

Depending on what you have read, seen, or experienced with GenAI, you may view it as a valuable addition to your technology stack or a troubling security risk. Both views are valid. GenAI is new, and it does indeed provide some enhancements to various tasks. It is especially good at improving productivity and efficiency. However, it also comes with some risks, especially to secure, private, or confidential information shared with it.

Here are five considerations for your nonprofit board to review and discuss.

  1. Do we have a GenAI policy in place for employees and volunteers?

Given how new GenAI is, the answer is “probably not.” However, it is essential to clarify the organization’s position on when, how, and why GenAI may be used and by whom.

Consider the following as part of your GenAI policy:

  • When do we think it is acceptable to use GenAI, and for what types of projects? For example, is it okay to feed a published piece of content, such as an article, into GenAI and ask it to summarize it? Is it okay for our staff to use GenAI to outline a presentation but not okay to ask it to write an article?
  • How can it be used? Be clear about the circumstances in which you think GenAI is acceptable and when it is not.
  • Clarify what may be shared with common GenAI platforms. Many executives and security experts have expressed concern about the potential of proprietary information leaks from unwary GenAI users. Any information ingested by a GenAI platform becomes part of its memory or part of the data from which it may draw future outputs for anyone using it. Sharing confidential or proprietary information with it could lead to an information leak that puts an organization at risk.
  1. How might GenAI impact our organization?

The board must consider the impact that GenAI can make on all areas of the organization: marketing, finance, operations, and human resources. There are many proven use cases now available for the usage of AI in each of these functional areas of an organization, but it is up to Boards to decide where or how it may be utilized in each.

  1. When should we begin using GenAI?

If you’re not already using it (and some of your employees probably are already), then don’t wait. Create your GenAI policy. After study and discussion, choose an area for a pilot program. For example, consider the accounting software already in use at your organization. Does the software vendor provide an AI-based tool with it? Is it being used effectively? How might it be used to automate existing processes or improve efficiency?

A pilot project with one department is a low-risk way to test the waters. It helps you make inroads and test concepts without a heavy investment and will help you assess the results quickly too.

  1. Who will be responsible for this moving forward?

Another vital question that Boards must address is who in the organization will be responsible for GenAI policies and use moving forward. It may—or may not—be the IT department. A representative group, comprised of members from each department, may be a good way to begin to ensure that the potential of this emerging technology is considered from every possible angle.

  1. How will GenAI impact our industry?

Any new technology is a disruptor, and GenAI has the potential to be a huge disruptor in all industry segments. The question isn’t whether but how it will impact my specific nonprofit and the area in which we work. Consider researching this topic further and bringing it back to the forefront periodically for review by your board and organizational leaders.

Stay Ahead of the Curve

With the field of GenAI changing rapidly, keeping abreast of trends and changes, and incorporating those that can give your organization a competitive edge is vital. Your board can lead the charge, ensuring that this new tool becomes a useful adjunct to your existing software rather than a distraction.

Welter Consulting

Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact us for more information.

Mar 13
0

Your Nonprofit Audit Checklist

By | Audit, Nonprofit | No Comments
person pointing to computer monitor with two others sitting in front of computer monitors

Audits provide the transparency that donors and members need. An audit builds trust, which leads to developing these relationships. It also ensures to a nonprofit board, directors, and staff that their accounting and finances are being handled professionally.

However, audits can be stressful and time-consuming for all involved. To ensure that your audit goes smoothly, we’ve prepared this audit checklist. You can print it out and use it to get the people, processes, and items ready for your next audit.

Pre-Audit

  • Prepare for the Audit

Ensure that you have set up access to the accounting program for your auditors and that their permissions enable them to do their job. Gather relevant records and update the accounting system. If you have paper-based records, some document scanners and system tools (such as those with MIP Fund Accounting) enable you to scan paper records into the system where they are uploaded.

  • Reconcile Accounts

Reconcile bank, credit card, and other financial accounts. Choose a cutoff date and make sure that everything is in the system by that date.

  • Check Restricted and Unrestricted Net Assets and Activities

Using your accounting system, check restricted and unrestricted net assets and activities.

  • Review Grant Reports

Ensure that all grant information has been entered into the system. Enter activities and costs to the appropriate grant lines and funds.

  • View the Accounting System

Review the entire accounting system. Run reports and check figures to ensure there are no surprise findings in the audit. You may not catch every error, but you can prevent wasted time by fixing simple mistakes before the auditors begin their work.

  • Communicate with Your Team

Alert your team that an audit is coming and share the dates with them so they can prepare. Make sure you have space assigned to the auditors if they are coming on-site and that they have the appropriate access to the systems and files they need. Also, be sure to share the information with the Board or Audit Committee that an audit is forthcoming.

  • Review Variances

If you find any variances in the accounts, sit down with your finance team and discuss them so you have a clear explanation for the auditors.

The Audit

  • Meet with the Auditors

If this is the first time your organization is conducting an audit, plan to sit with the auditors and go through the information with them to familiarize them with your organization, its accounting and finance structure, grants, and so forth.

  • Clarify Any Questions

If you aren’t sure what the auditors are asking for, ask clarifying questions. Minimize back and forth with the auditors by providing them with complete access to the required information.

  • Ensure Full Support

Be sure to let your team know it is fine to reschedule meetings to take time to work with the auditors as needed. They should feel free to set aside other projects to meet with the auditors.

  • Trust the Auditors

You’ve hired an auditing firm for a reason. Presumably, you have done your due diligence and researched the auditing firm thoroughly so you can trust their professionalism and judgment and let them do their work.

Post-Audit

  • Check-In

Check in with your auditors to ensure that everything is underway and that they aren’t waiting for more information. Provide assistance and support, if needed, to help them complete their task. Be sure to let them know of any deadlines, such as upcoming board meetings or publication deadlines, which are waiting for their work.

  • Communicate Updates

Communicate updates on the audit status to your team, the board, finance committees, and anyone else who may be involved in the work. Keep them apprised of the audit progress as well as any requests from your auditors for further information.

  • Present the Results

Present the audit results in a clear, concise, and honest manner. Prepare for the presentation by reviewing the audit findings and discussing any outstanding questions with the auditors. You may wish to have the auditor there while presenting to your board to ensure they can answer questions directly. If so, ask your auditors well in advance of any upcoming meetings so they have time to schedule and prepare too.

  • Review Internal Controls, Policies, and Processes

This is an opportune moment to review internal controls. Do you have adequate internal controls in place, or do they need to be updated? If you do update the internal controls, check and ensure that your Policy Manual is also updated.

And finally, how did the audit process go? Did you feel that the process went smoothly, or does it need adjustment? Make notes and take steps now to prepare for your next audit by adjusting any areas of the process to remove roadblocks.

Welter Consulting

Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact us for more information.

Mar 06
0

Beyond the Hype: Making Sense of AI’s Role in Nonprofit Organizations

By | Nonprofit, Technology | No Comments
person using laptop computer with AI on screen

Since ChatGPT made such a splash in the fall of 2022, companies worldwide have kept a close eye on the development of AI-powered tools. Now, you can’t turn on the news or open a social media app without seeing ads for AI-this or that or promises of AI completely changing the workforce.

Where does AI fit into the nonprofit world? How can organizations reassure their staff that AI isn’t there to replace them but can help make their jobs better?

Reassure Staff That AI Isn’t New to the Workplace

Even though ChatGPT made a big splash in the fall of 2022, AI isn’t new. In fact, you can reassure your team that they have already been using it in some capacity all along! For example, if you use PowerPoint, the popular presentation software, you may have noticed a feature called “Design Ideas.” Click the button, and the program will provide suggested designs to improve the layout and appearance of the slide. This is an example of AI already inside a program you’re already using. Another example is even more common: your cellphone. If you have a feature that fills in frequently used words when you text someone, that’s also AI in action.

So, AI isn’t some new robot that’s replacing human workers. It’s been there all along, and we’ve (mostly) welcomed it within the context of our jobs. When it’s done right, AI simply makes things more efficient. And who doesn’t want to be more efficient at their job?

Provide Staff with Usage Guidelines

Are you currently using ChatGPT and other AI tools? Chances are good that someone on your team is already using them. In that case, it is better to get ahead of the curve and provide helpful usage guidelines than to avoid the topic altogether.

  • Allow staff to use AI to generate outlines and brainstorm topic ideas: AI is great for overcoming writer’s block. Instead of facing a blank page without a place to start, use tools like ChatGPT to develop an idea or brainstorm a list, giving people a good starting point.
  • Never use AI-generated text without clearly stating it is AI-based or without reading through it to ensure it is accurate. Remember that tools like the free version of ChatGPT rely upon millions of documents but do not have up-to-date information. The system can make mistakes, incorrectly cite things as correct, and provide older information. It can also be plagiarized.
  • Include guidelines for what can be fed into AI as source material. Anything ingested into AI becomes part of its database forever—and can be used by anyone else. Any proprietary or confidential information must be kept from the tool, so it does not become part of the repository of information used worldwide.
  • Learn and experiment with prompts and keep a log of useful prompts. There’s a knack for asking GenAI the right question in the right way to obtain useful information. Once you’ve discovered it, keep a record of it. Ask your team to share best practices from their experimentations, too.

Improving Jobs—Not Replacing Them

One hundred years ago, many people worked as telephone switchboard operators. A switchboard operator manually connected cables at the phone company switchboard to make sure that calls went through correctly. Now, such things appear only in museums, replaced by an automatic switch and sophisticated call routing software. We don’t even think about connecting a call anymore—it happens in the blink of an eye, and many people take it for granted that this was always the case.

A few years from now, AI will be the norm rather than the exception. Nonprofits will look at it as just another tool, like their word processing or accounting software. It will be a way to do tasks more efficiently, but it cannot replace skilled workers. Emphasize to your team that skills are always valued and that no artificial intelligence, no matter how smart, will ever replace the creativity, ingenuity, and talent of a human being.

Welter Consulting

Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact us for more information.