Category

Accounting

Aug 13
0

Three Characteristics of Successful CFOs

By | Accounting, Nonprofit | No Comments
Three business people at desk with laptops.

According to the latest Sage paper, 96% of CFOs feel that their role will change significantly over the next three years. Numerous factors drive this change, but the result is clear: 80% of the survey respondents are worried about their future.

If you’re one of the CFOs feeling overwhelmed by the pace of change, you’re not alone. Throughout the profession, many are wondering if they have the right combination of skills to see them through the next several years. Evolving financial regulations, new technology like AI, and an increasingly competitive business environment continue to put pressure on CFOs.

Fortunately, it is likely that you already have the skills identified in the report that support job success. Let’s examine the skills that successful CFOs have in common.

The Evolving CFO Role

The CFO role has evolved over the past several years. Today, CFOs wear many hats. They lead accounting and finance departments, but they’re also integral to business planning, sales, marketing, and strategic decision-making within their organizations.

In the previously cited Sage report, CFOs who continue to thrive despite the many changes around them are those who lead with empathy. These leaders genuinely value people as well as the organizations they serve. They support their organization’s mission, help them make margin, and ensure that the people they work with have what they need to be successful, too. Additionally, these leaders strive for long-term solutions, sometimes referred to as sustainable. Lastly, they embrace diversity—diverse people, backgrounds, and opinions.

Three Characteristics of Successful CFOs

The Sage report found that successful CFOs share three main characteristics.

Leading Beyond the Finance Role

Successful CFOs step into leadership roles throughout their organizations. They foster cross-department connections and don’t hesitate to work with others to solve problems. Their role moves well beyond budget and financial management into operations, marketing, and other areas as the need arises.

Embracing Technology

The CFOs who thrive amid change take every opportunity to embrace technology. Whether it’s working with IT and other departments to choose a new accounting platform or seeking ways to use their existing platform more efficiently, successful CFOs embrace technology and use it to become more efficient in their work.

Cultivating Work-Life Balance

Success can be defined in many ways. While most people view professional success as the goal, those who thrive embrace work-life balance. These people work hard but know when they need a rest. They make sure they take care of their health, work out, rest, take vacations and personal time and spend time with family. In short, they take a balanced approach to life. Truly successful CFOs most often exhibit good work-life balance and avoid workaholism.

Technological Versatility

A key concept to remember is “technological versatility.” Most of the successful CFOs diversify their tech stack to ensure they do not put all their eggs in one tech basket. Many use cloud computing platforms which offer excellent security and backups; others incorporate new and emerging technologies, often testing them to see what works for their organization and teams. The key is finding the right mix of technologies to improve workflows and results.

Here’s to Your Success!

There is an old saying that change is the only constant in life. Every organization, no matter what its size, is experiencing rapid changes in every aspect of business. Successful CFOs keep their eye on their priorities, embrace a healthy work-life balance, and explore new technologies.

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 23
0

Mistakes to Avoid During Accounting System Conversions

By | Accounting, Nonprofit | No Comments
Mistakes to Avoid During Accounting System Conversions

For system conversions to go smoothly, you need a steady, experienced consultant to help you avoid mistakes. We’ve found throughout the years of offering this service that accounting system conversions that go awry do so because of avoidable mistakes. Here’s a rundown of some of the mistakes we have seen and our advice on avoiding them. And, if you are looking for help with your accounting system conversion, please contact us for more information about our service.

What Is an Accounting System Conversion?

An accounting system conversion involves migrating financial data and processes from one software platform to another, typically upgrading from an outdated system to a more suitable one. The process starts with assessing current system limitations and identifying new requirements.

After selecting a new system based on factors like features and scalability, the data migration phase begins. This includes exporting, cleaning, and importing data to ensure accuracy and preserve historical financial information.

Configuration follows, setting up the new system’s structure, workflows, and integrations. Thorough testing ensures functionality, often with parallel runs alongside the old system. Staff are trained to use the new software effectively before a planned cutover to fully implement the new system. Ongoing support is crucial post-conversion to address any issues and ensure smooth operations.

Common Mistakes to Avoid During Accounting System Conversion

Some mistakes we’ve seen organizations make when moving from one accounting system to the other are:

  1. Choosing a system simply based on what the CFO or someone else in accounting has used in the past: We all gravitate towards what is familiar to us. But it’s important that your organization chooses the right accounting system for its needs. Don’t limit yourself to software that you’ve used before. Working with an external consultant ensures that the requirements gathering phase of software conversion is comprehensive and the selection of vendors is impartial. It can improve your odds of finding the right software by avoiding the “comfortable clothes” syndrome – choosing software because it’s comfortable, like a favorite t-shirt or pair of sweatpants. What’s comfortable isn’t always the right choice.
  2. Moving too fast: Some companies decide they want a new platform and purchase the first thing they see. They move too quickly, skipping several steps in the process. There’s an old saying: “Marry in haste, repent at leisure.” Choosing new technology too fast is like that too: “Pick an accounting system too quickly, repent at leisure.” Don’t skip the steps in between. The right system will make such an impact on your productivity that rushing into a bad system is probably worse than not moving to a new platform at all.
  3. Following trends instead of functionality: Another pitfall to avoid is looking for trendy features in accounting software rather than focusing on the bread and butter features you need. It’s exciting to see the latest advancements in accounting software: colorful reports, amazing automation and so on. However, trendy features provide no value to your organization if you won’t use them. Focus on identifying unmet needs and selecting software based on organization wide needs.
  4. Failing to consider all aspects of the system: Choosing a new software platform is more than assessing features. You’ll need to determine whether cloud or on premises systems is best for your needs. You may need to figure out which platform works with other existing systems or how they will interact with each other. There are many aspects to consider when evaluating accounting software that go far beyond the accounting platform itself.
  5. Not considering follow-up training and support: Moving to a new accounting platform means a learning curve. No matter how easy the system is to navigate or how user-friendly the dashboard is, there’s going to be some training involves. You must consider both the vendor from which you are purchasing the system as well as the training and aftercare they offer. Not all vendors offer the same level of post-purchasing implementation support and training. Be sure to read through their offer thoroughly, and make sure that it meets your needs. The best system in the world won’t be enough if you don’t know how to use it or lack training resources for your team.

Accounting Software Selection, Implementation, and Support

Welter Consulting offers a comprehensive and personalized approach to nonprofit accounting software selection, implementation, and support. Vicki is well-versed in all aspects of nonprofit accounting and can help you throughout the entire re-platforming process. For example, we were able to help OPAL Land Trust with their accounting system conversion, solving many tricky problems for the nonprofit. Please contact us for more information on how we can help you through your system conversion.

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.

Jun 20
0

Tame the Paper Tiger: How to Get Accounting Files Under Control

By | Accounting, Accounting Software, Nonprofit | No Comments
person using ERP accounting software on both a mobile phone and laptop, Accounting Files

How dependent is your office on physical paper? Do you have file cabinets crammed into every hallway and corner, or have you tamed the paper tiger and transformed your office into a streamlined and efficient digitally based accounting office?

The pandemic forced many organizations to consider going paperless as more employees had to work from home. However, not everyone continued the transition to paperless. Many organizations continue using basic software such as spreadsheets to manage their accounting. They print invoices and bills, file bank statements and credit card statements, and keep customer files in file cabinets.

This isn’t necessarily bad, but it is inefficient. Today’s digital transformation affects nonprofits just as it does for profits, offering time-saving software and technology to better manage accounting, finance, and overall paperwork. Let’s get your paperwork under control and talk about some of the new and better ways to manage these tasks.

Nonprofit Accounting Software

Specialized nonprofit accounting software can help you move from an inefficient paper-based or spreadsheet-based accounting to a nearly paperless office.

Nonprofit accounting software was built specifically for nonprofit organizations. It includes basics such as a general ledger, accounts payable, and accounts receivable, and organizes the information logically for nonprofits. Additional nonprofit accounting software offers grant management functions, tracking expenses and revenues by program area, and more. Donor management software can be used alongside nonprofit accounting software to manage outreach campaigns and provide a coordinated central repository for all information.

Using nonprofit accounting software instead of spreadsheets helps control excess paper in your office in several ways. Nearly all the basic accounting functions you need to track, from invoices to credit card and banking information, are all tracked electronically, eliminating the need to print and store everything. Additionally, you can run reports more easily from a dedicated nonprofit accounting program than from spreadsheets. You can create and share PDFs of your balance statement, income statement, cash flow, and more.

During audits, if you currently need the auditors onsite or must print reams of paper and carry it to their office, you’ll find it much easier with accounting software. With nonprofit accounting software, you can provide auditors with usernames and passwords, allowing the auditors to select and review any information electronically. And, if you’ve chosen to use a cloud-based accounting platform, the auditors can access the system remotely. They may not have to spend several days onsite if they can review information electronically.

By moving your accounting to a completely digital system, you’ll save paper (and trees!). You’ll also reduce the number of mistakes in your accounting. Unlike a spreadsheet, which may require you to type information into multiple worksheets, with an accounting program, you just enter it once into the system. Accounting software offers many timesaving features and improves efficiency in any organization.

Differences Between Nonprofit Accounting Software and Small Business Software

Many nonprofits consider specialized accounting software but opt instead for off the shelf small business software. Such software may be appealing. It may have a lower price tag and easier onboarding than a robust nonprofit accounting platform.

However, small business software is not designed for the specific needs of a nonprofit. It does not track revenues and expenses by program. It cannot manage grants easily. And it does not integrate with donation software. What you save in upfront and other licensing costs, you may end up spending on custom programing to get small business software to produce the right reports or track line items correctly to the general ledger.

Speak with Nonprofit Accounting Software Experts

If it’s time to make the switch and tame the paper tiger, speak with the nonprofit accounting and software consultants at Welter Consulting today. We’re experienced at working in the nonprofit world and understand the challenges you face managing your accounting. We can suggest the right accounting platform and other software to streamline your office and tame that paper tiger.

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.

Jun 13
0

The Art of Accounting Storytelling: Use Storytelling Techniques for Effective Presentations

By | Accounting, Accounting Software, Nonprofit, Uncategorized | No Comments
Person giving accounting presentation via a large computer monitor, Accounting Storytelling

Once upon a time …

Your mind probably raced back to childhood at that phrase, to many pleasant memories of adults reading stories to you. The human mind is hardwired to listen to stories, and our brains naturally gravitate toward the time-tested framework of a story: a beginning, middle, and end; a hero on a quest; a villain who tried to stop the hero; and the wise guide who helps the hero overcome the challenges.

Financial professionals may think that storytelling techniques are for sales, marketing, and donor relations, but they also offer a rich framework with which to share information so that it is understood and remembered. Let’s examine the art of storytelling and how accountants can leverage this method for better communications.

Why Use a Story Framework for Financial Presentations?

Every accountant or financial professional must present numbers. Whether it’s presentation budgets to stakeholders or reviewing the annual report with the board, at some point this year you will be asked to present to a group.

Part of the art of presenting wisely is engaging the audience’s attention. Accountants may face a significant challenge when presenting numbers because not everyone in the group understands basic accounting concepts. To have your point understood and remembered, you may need to use creative methods to share information. This is where storytelling techniques come into play.

Everyone has heard stories. We watch movies and television shows, we read books and see plays. We know the framework of a good story. It is burned into our subconscious mind through thousands of repetitions over the course of a lifetime. Tapping into this framework to share financial information helps engage your audience and share information in ways they can easily grasp.

Accounting Storytelling Framework

So just how can you use a storytelling framework for your numbers-based presentation? Think of the hero’s journey. Every hero starts off on a quest. Luke Skywalker set out to return R2D2 and the Death Star plans to the Rebels to thwart Darth Vader and the evil empire. That was his quest and the hero’s journey unfolded in two hours of adventure that has kept audience spellbound for decades.

Now you may not be a Jedi knight, but you are the ninja of accounting, so let’s apply this framework to a common scenario: presenting budgets to stakeholders. In your accounting story, you must first explain the challenges from the audience’s perspective. You must see the information through their eyes and focus on what is important and memorable to them.

What information are you sharing with them? What is the story behind the numbers? Focus on the narrative flow around the data. What is the high-level takeaway, and what is the story inherent in the information?

Good stories paint visual pictures in the mind of the audience. You can do this with your data by using data visualizations such as graphs and charts. The old saying that a picture is worth a thousand words is true when it comes to presenting accounting or financial data.

Using Your Accounting Software to Craft a Compelling Story

The right accounting software plays an important role transforming basic data into stories through data visualizations. Does your software help you create various charts, graphs, and other visualizations for compelling presentations, or do you spend hours exporting data into spreadsheets and crafting visuals from imported data?

If the latter describes a typical scenario, it’s time to consider updating your software. Newer government accounting software and nonprofit accounting software provides robust data visualizations. It can really make a significant difference not only in how you present but in the impact your presentation has on the audience.

Using storytelling techniques to share financial information may seem far-fetched, but it’s a time-tested method for helping audiences engage and connect with information. Try it and become the hero of your finance team

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.