Category

Accounting Software

Oct 28
0

AI Helps CPAs Save Time, Improve Efficiency

By | Accounting, Accounting Software, Nonprofit | No Comments

Artificial intelligence (AI) is now embedded into our daily lives in ways we couldn’t have imagined years ago. This includes the workplace. CPAs have discovered new and innovative uses for AI. While some of these applications require a bit more programming skills than the average accountant possesses, they do highlight the many creative ways in which AI can improve workflows and efficiencies for accountants.

Drafting Technical Accounting Memos

Does your department draft memos? AI can do it for you with the right preparation. Using an internal, paid version of an AI tool such as Microsoft Copilot, you can “train” the AI to write memos for you based on previous memos. The key is to ensure that the files you use to train the AI provide best practices. As the AI scans the internal memos, it will use them to develop its own language model and formatting style for future memos. With the right prompts and commands and clean, organized files to train the bot, accountants can use AI to generate new memos. Once the AI platform generates the memo, “humans in the loop” should review the final output for accuracy. AI can, and does, make mistakes, so the last step of a person reviewing the AI output is critical.

One important item to note: Do not try this with “free” or publicly available AI models. Use only proprietary, paid, internal AI tools to train your AI models. Remember that anything scanned by public AI models, like the freely available Copilot and ChatGPT, becomes part of their repository forever, so anything confidential or proprietary should not be used with public models. Private AI models, such as those paid for and installed locally by your IT team, keep the information contained within and used only by your organization.

Faster Code Generation

Even with the best nonprofit accounting software, there may come a time when you need to output data to spreadsheets and use various functions to calculate different things. That’s where AI can come in handy. Many accountants are using AI to develop formulas to use within spreadsheets. Rather than looking them up or tinkering with them, accountants are simply asking AI platforms to help them develop code to run their calculations. AI is good at coding, and many find that code generation is a great time saver.

Research Tasks

AI platforms excel at analyzing vast amounts of data, including searching the web. They are terrific at performing research tasks. This includes market research, accounting research, and more.

One tip: share your own thoughts with the AI platform, then ask it, “What would you add to this, and why?” It’s important to note that while AI does perform good research functions, it can still make mistakes. These “hallucinations” provide incorrect answers. So, take AI-based research with a grain of salt, and read through it carefully. Confirm or double-check sources, especially data that you plan to cite in a report.

Marketing Support

A fourth area that AI can support is marketing. Whether it’s donor outreach, membership drives, or finding new grants, AI platforms offer everything from drafting social media copy to developing ideal donor profiles.

As with other forms of research produced by AI platforms, the last stop for anything generated by AI should be a human being. People can read through text generated by AI and spot inaccuracies, cliches, and odd phrases that just don’t sound right. AI isn’t perfect, and the “human in the loop” is essential to using the tool effectively but not leaning on it as a crutch.

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.

Jul 22
0

Choosing New Accounting Software? Tips to Find Great Software

By | Accounting, Accounting Software, Nonprofit | No Comments
person at desk using accounting software

What’s driving your need to choose new nonprofit accounting software? Some frequently cited reasons for shopping for a new system include legacy systems struggling to keep up with demand, the need to export data into spreadsheets to use it (or run reports), lack of integration, and lack of modern features, such as AI.

But if these are the reasons driving your software search, slow down. Shopping based on features is often a recipe for failure. Here, we share with you the best practices and tips to truly find the right nonprofit accounting software for your organization.

Don’t Shop Solely by Features

It’s tempting to make your wish list of features and go forth and shop. But it’s not the best idea. Although features are easy to understand, see, and experience, they aren’t always the best indicator of a good fit with your needs. Many packages come with more “bells and whistles” than the average accounting department needs. Such packages may be over-engineering for your organization, and over your budget, too. Although features are important – after all, you don’t want to be exploring spreadsheet data to run your reports anymore – there are more considerations than features alone.

Implementation Speed

One consideration is implementation speed. As you weigh your new software choices, ask the consultant or vendor how quickly the system can be up and running. Longer implementation times can be a sign of a system that’s more than you need or a vendor who can’t give your organization the personal attention it deserves.

How long is too long? Anything longer than six months is a sign of potential misalignment with your needs. And timelines stretching past a year are untenable for the average organization. Changing systems is disruptive, and lengthy timelines exacerbate the disruption. Look for reasonable timelines for weeks, not months, to help you transition efficiently to the new system.

Support and Training

Another important consideration for new software purchases is support and training. A good implementation team is critical, but so is the post-implementation support and service. No matter how tech-savvy your team is, there will be some level of customer support needed. Having local support is ideal, but if that’s not possible, a hotline that puts you immediately in touch with an expert who can walk you through troubleshooting or answer your questions is the next best thing. Read through the vendor’s materials carefully and ask clarifying questions to fully understand the support available to your team.

Training is also essential both to learn the new system and to maximize its use over time. Choosing a power user or super user, someone who will receive additional training, ensures that you have an expert in-house who understands advanced functions in the new system.

A single one-hour training session with the vendor probably won’t be enough. Discuss with the vendor or consultant providing the new software the length and type of training available as part of the implementation package. Different user groups may require varying levels of training, too, so consider that as part of the overall training approach.

Total Cost of Ownership

Lastly, the total cost of ownership (TCO) should be one of the deciding factors in your software choice. Software costs are only part of the equation. Factor into the costs any integrations or customizations required, as well as training and implementation time, and you’ll gain a much clearer picture of the TCO for the software.

Seek Expert Advice

Choosing the right nonprofit accounting software can be a daunting task. It helps to have an expert by your side who knows the right questions to ask and the often-overlooked aspects of software shopping that the average person doesn’t know. Welter Consulting is happy to assist you with your software choices and can guide you through the process from start to finish.

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.

May 21
0

Why Your Nonprofit Needs a Financial Risk Assessment

By | Accounting, Accounting Software, Budget, Nonprofit | No Comments
person at desk with notebook, pen, and laptop and graphs showing high/low waves for risk assessment

A financial risk assessment is an annual audit of many areas of your organization’s financial preparedness and stability. Such an assessment looks at many areas of your company, including the overall management, human resources, facilities, finances, accounting, sales, information systems, and more. Here is why a financial risk assessment is vital for a healthy nonprofit.

The Purpose of a Financial Risk Assessment

Everything in life involves risk. That includes running a nonprofit. A financial risk assessment examines the current state of your business and identifies potential risks. It’s only after identifying risks that you can take action to address them.

You can conduct your own financial risk assessment; however, many find that obtaining outside assistance from their CPA, a nonprofit consultant, or another similar professional is helpful. Often, we are too close to our own business to see potential risks clearly. An outside perspective can cut through the familiarity of the everyday and see the gaps that we often miss.

Benefits of a Risk Assessment

A financial risk assessment provides many benefits to nonprofits by enhancing their overall operations and safeguarding their missions. It helps organizations identify potential risks, such as fraud or inefficiencies, ensuring that their funds and resources are managed effectively to achieve their goals. By addressing these vulnerabilities early, nonprofits can streamline their operations and make better use of their resources.

Conducting regular financial risk assessments builds trust among donors, board members, and the community. It demonstrates a commitment to sound financial practices, which can attract and retain long-term supporters. Additionally, these assessments ensure that nonprofits comply with legal and regulatory requirements, minimizing the risk of penalties or reputational damage.

Finally, a financial risk assessment equips nonprofits to navigate uncertainties like economic shifts or changes in funding sources. By preparing for these challenges, organizations can maintain their focus on their mission and continue to deliver meaningful impact.

Costs of Avoiding a Risk Assessment

Perhaps you’re thinking, “This is all well and good, but we’re so busy! We just don’t have time to stop and do a comprehensive assessment.”

Do you have time to address a big risk, like a cyber-attack? What about a trip and fall accident because you haven’t assessed the risk of a worn carpet in your reception area?

It’s like owning a car—do you ignore the knock in the engine until the car breaks down, or do you take it to a mechanic to get it checked out?

The costs of avoiding a financial risk assessment may include:

  • Mistakes in the balance sheet, such as liabilities not properly recorded or other mistakes that can muddy the financial picture, can be time-consuming to fix later.
  • Failing to conduct a physical inventory on a regular basis can lead to adjustments, negative equity, and other problems.
  • Missing or poor internal controls can lead to employee theft or mismanaged funds.

There are many more areas where failing to conduct a risk assessment can lead to problems. As you can see, it’s always better to prevent problems than to spend time later fixing them.

Other Benefits of a Risk Assessment

Other than avoiding scary problems, there are many more benefits derived from conducting a comprehensive risk assessment. The assessment can help you build your strategy, setting the stage for thoughtful decisions about where to invest for risk mitigation and where to step out in growth. It may also uncover untapped potential and lead to productive discussions about how your organization can expand.

Start Now

Don’t wait until the end of the year planning to conduct your assessment. You can start now. Pick one department or area of the company, such as finance or operations, and come up with a list of questions. Ask yourself what is working, what isn’t working, and what may be improved.

This is where working with an outside consultant can help. We’re happy to discuss your plan of action and the next steps for financial risk assessment and management.

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 26
0

Human and AI Collaboration: Working Better Together

By | Accounting, Accounting Software, Nonprofit | No Comments
people shaking hands with AI screen overlay - Human and AI Collaboration Working Better Together

As time has passed, more organizations are testing the potential of AI to augment job functions. AI tools may be readily available. For example, AI and machine learning may be built into newer versions of nonprofit accounting software, speeding approvals, automating reminders, and helping complete many tedious jobs faster.

Where once we feared that AI might take over the work of humans, we now see that people, working in tandem with AI-based platforms, can achieve much more together than singly. Here’s why human and AI collaboration can mean more efficient work for nonprofits.

AI Enhances Productivity and Efficiency

One of the best ways that people can partner with AI is to use this new technology to enhance productivity and efficiency. AI cannot (and should not) be expected to take over tasks entirely. But it can provide exceptional efficiency gains. Here are five ways in which your team can use AI to enhance their productivity.

Automation

AI can handle repetitive tasks, freeing up time for you to focus on more complex activities. For example, email filtering, scheduling, and data entry can be automated to reduce the workload. Within nonprofit accounting software, AI can automate the routing of approvals, running reports, and sending reminders, saving your team minutes that add up to hours of productivity gains per week.

Data Analysis

Another benefit of using AI is to leverage its power to analyze large amounts of data. It can find patterns and make suggestions based on these patterns. Your team then needs to review the suggestions and act on them according to their judgement. AI produces the reports, but people need to sift through its findings, confirm them, and then choose which ones to act on.

Predictive Capabilities

AI can predict outcomes based on historical data, helping you anticipate trends and make proactive decisions. This comes in handy with marketing and donor outreach, for example. AI can examine response patterns based on previous outreach campaigns and make suggestions to maximize your efforts for the best response.

Research Assistant

When you need to find facts and data, AI can scour the web more quickly than a person can search and examine the results. The AI-produced results can be refined and enhanced to find the research you need to support a presentation, pitch, or other activity. Be sure to check the citation link and confirm the accuracy of the data or statistics produced by AI searches. It sometimes makes mistakes analyzing the source material and matching it to the search query. A quick scan of the source document can help you confirm if the stats are accurate or not.

The AI – Human Partnership

AI isn’t a stand-alone tool, but rather a potential efficiency booster for the workplace. Humans, according to a Harvard Business Review article, must determine the value of the insights generated by AI and weigh their merits. As you can see from the list of suggested ways in which teams can use AI to improve productivity, it can enhance speed and efficiency, but people should always review its results and findings and confirm them.

Moving Forward: Understanding, Training, Governance

It is vitally important, however, that before you encourage staff to use AI-based platforms, you understand how they use, store, and serve data.

Public AI, for example, ingests everything from the web, and if you feed it new material, which becomes part of its massive data repository. This is why you should never enter anything proprietary into “free” tools like ChatGPT or Copilot.

Developing a set of guidelines for your team on how they may (or may not) use AI platforms, especially free or public-access AI, is essential, as well as training sessions to help them understand responsible AI use.

While the headlines may hype AI as a replacement for people, it’s really the partnership between AI and people that gets the best result. AI is a tool like any other. It’s how the tool is used that counts.

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.