Category

Accounting

Dec 23
0

How to Prove Abila MIP Fund Accounting is “Budget Worthy”

By | Abila, Accounting, MIP Fund Accounting, Nonprofit | No Comments

How to Prove Abila MIP Fund Accounting is “Budget Worthy”

Would you love to implement MIP Fund Accounting for your agency but you are concerned with getting a buy-in from executive leadership, your IT department and the board? These tips from The Center for Association Leadership can help you pitch and sell your nonprofit tech budget with minimal pain.

MIP Fund Accounting tends to be easier to advocate for than other types of software due to its’ efficiency and productivity. Of course, you’ll have to explain the needs to your board and others for funding, but let Abila and Welter Consulting help make the case to purchase MIP fund accounting by taking these two easy steps.

Step 1: Link It to Member Needs

The better you can build a case linking your technology purchase to member needs, the more likely you are to get the green light and the budget. The directors and supervisors at your organization are tasked with keeping members’ needs in mind at all times. That includes clients and constituents, or the people you serve. When you build a case linking technology budgets to solving problems for members and constituents, the directors will be more likely to approve it.

MIP Fund Accounting provides your organization with greater transparency and better accuracy when tracking expenses. Detailed reporting on every aspect of your organization’s finances will fulfill your members’ needs for accurate, timely information on how their funds are being managed and used to fulfill the organization’s mission.

Step 2: Set Mission-Critical Metrics

From the start of your tech budget request, communicate the specific metrics by which you will measure success. Specific metrics provide an objective benchmark by which to assess how well the new purchase has helped you achieve your goals. Whether it’s reducing costs by 5 percent or maximizing investments, you can show how your MIP fund accounting purchase will help achieve specific goals.

Presenting Your Case

Presenting your case for new technology purchases to members, the board of directors, or C-level executives can be challenging. Each stakeholder has different information needs; everyone looks at the ideas and information through the lens of their own self-interest. Executives want to be sure the purchase will help the organization grow. The board may wish to limit costs. Fellow members and coworkers may simply want to know what this new technology purchase will do for them.

To present your case, gather all your background data and facts and distill them into the simplest ideas possible. Don’t overwhelm your ideas with tons of facts, but present the most important items first, then build a supporting case. People’s attention spans are short, and you’ve only got seconds to get them on board.

Practicing your pitch beforehand often helps. If you’re on a team evaluating the purchase together, then ask team members to listen to your pitch and offer suggestions. The right MIP fund accounting software can make accounting tasks easier. It can also make your organization’s funds transparent and easy to understand for all. By approaching the request for funds in a logical fashion and using these steps, you stand a better chance of successfully acquiring the budget for your purchase.

Abila MIP Fund Accounting from Welter Consulting Welter Consulting offers Abila MIP Fund Accounting software to help nonprofits manage their accounting needs. Abila MIP Fund Accounting enables you to report and track the most important information for your board, your supervisors, and others eager to see how your nonprofit’s resources are being used. MIP fund accounting software is perfect for many nonprofits. At Welter Consulting we are committed to finding you the most affordable technology, the most powerful solution, and providing expert support. We are dedicated to assist you in achieving your mission by leveraging technology and superior reporting. We are passionate professionals who choose to work in the nonprofit sector for the same reason you do – helping others. Please give us a call at (206) 605-3113 or by visiting our website at Welter-consulting.com to see a complete listing of upcoming training and webinars, including the free NonProfit Enrichment Series, hosted by Welter Consulting, LLC or by clicking on the following link: NonProfit Enrichment Series Webinars.

Dec 12
0

New Methods to Obtain Professional Education Credits for CPAs

By | Accounting, Nonprofit | No Comments

CPAs now have two new ways in which they can obtain Continuing Professional Education (CPE) credits. The AICPA and the National Association of State Board of Accountancy recently changed the standards for CPE providers as well as NASBA’s Field of Study document. These new opportunities to earn continuing education credits seek to open more opportunities for CPAs to earn valuable continuing education credits so that they can better serve the organizations they work with.

Computer and Live Events: Blended and Nano Learning

The two new methods now accepted are blended learning and nano learning.

* Blended learning includes a combination of learning methods such as seat-based (classroom) sessions, self-study, and video lessons on demand.

* Nano learning consists of short 10-minute modules, usually focused on a specific task. This type of learning is often used to help CPAs acquire specific skills rather than master overarching concepts.

Not all states accept these methods, so you must check with your local branch of the AICPA and the NASBA to find out if your state accepts nano and blended learning.

Additional changes are also being made to the Fields of Study document. These changes update categories and descriptions so that they are both current and relevant. The biggest change occurs in the Specialized Knowledge field of study, which now separates computer science application and information technology into its own categories. Specialized knowledge topics can now be specific to industries or categories.

Continuing Education and the Nonprofit Sector

Nonprofit financial managers need excellent quantitative as well as qualitative skills to best serve their constituents. These skills including exceptional accounting and financial management, as well as good communication skills.

Specialized skills that nonprofit accountants may also need include:

* Presentation and public speaking skills: Nonprofit CPAs may be called upon to address board meetings, and conferences. These are valuable opportunities to educate the public as well as members and donors.

* Interpersonal communications: Communications inside your office as well as throughout your organization are essential to good management. Persuasion and articulation of thoughts, ideas and concepts is essential for department leadership.

* Social media skills: Social media may seem like an esoteric area for accountants, but even accountants and financial leaders use tools such as texting to reach colleagues with quick messages. Learning the proper methods of communicating via social media is now an essential skill for CPAs.

* Data visualization: Data visualization helps non-accountants understand the nuances of the materials you are presenting. Understanding how to share information via charts, graphs and other methods can help both colleagues and the public understand the nonprofit’s financials easily.

Online learning and the new blended and nano learning methods may provide you with opportunities to build these skills and more. Professional development is essential for CPAs.

Welter Consulting

Welter Consulting helps nonprofit organizations bridge the gap between people and technology. Software support, implementation and training, as well as audit support, are our main areas of service. If you would like assistance with your nonprofit accounting needs, please call us at 206-605-3113.

Dec 05
0

New FASB Rules Go into Effect for Enhanced Clarity in Nonprofit Financial Reports

By | Accounting, Nonprofit | No Comments

FASB announced changes to Accounting Standards Update No. 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities. This landmark set of guidelines is the first update since 1993 and will change how many nonprofits report their numbers.

Summary of the New Guidelines

The new guidelines call for the following changes:

* Reducing the net asset classifications from three to two, net assets with donor restrictions and net assets without donor restrictions;

* Underwater amounts of donor-restricted endowment funds in net assets with donor restrictions are now required to be reported;

* Enhanced disclosures about underwater endowments are also required;

* Preparers can now choose between the direct method and indirect method for presenting operating cash flows;

* The requirement to reconcile the direct method with the indirect method is now waived;

* Requires a not-for-profit to provide in the notes qualitative information on how it manages its liquid available resources and liquidity risks;

* Requires reporting of expenses by function and nature, as well as an analysis of expenses by both function and nature.

The new standards take effect for fiscal years beginning December 15, 2017 and for interim fiscal years after December 15, 2018.

Enhanced Clarity for Donors, Members, and the Public

The impetus behind the changes is twofold. First, FASB sought to update the rules after a long period of consistency. The last update occurred in 1993, and an update was thought long overdue. With the changing nature of nonprofit organizations, donations, and information access by the public, new guidelines were thought necessary for enhanced clarity and confidence in the financial management of nonprofit finances.

The rules also seek to simplify financial reporting for nonprofits. FASB has no wish to complicate reporting for anyone, and the new guidelines, once understood and implemented, will likely make financial reporting easier for nonprofits.

Making the Switch Easier on Your Organization

How the changes may or may not impact your organization depends greatly on how your accounts are currently kept. For those who need to adjust their accounting methods, now is the time to begin planning to meet the compliance deadline of December 2017.

Reducing net asset classifications should not be too difficult for most nonprofits. Many already used two net asset classifications, and the former classifications can be rolled into three without too much difficult by most.

If you need assistance making these changes, Welter Consulting can help. We bridge people and technology together for effective solutions for nonprofit organizations. Your accounting software is an important component of the changeover from the older 1993 regulations to the new rollout. We can help you with the change and more.

Please contact Welter Consulting at 206-605-3113.

Dec 01
0

Could You Be At Risk Of An FLSA Lawsuit?

By | Accounting, FLSA, Nonprofit, Overtime | No Comments

A record number of FLSA lawsuits were filed against U.S. employers last year and with new overtime regulations due on December 1, this is a very good time to ask if you could be at risk.

 

As we reported earlier, another four million employees will be eligible for overtime pay under the new regulations and attorneys have warned this could lead to a spike in the number of disputes.

 

“We now have a new salary threshold that puts 4.2 million workers back into play,” said Daniel Abrahams of Brown Rudnick LLP in an interview with TSheets earlier this year. “You can bet the plaintiffs’ bar is busy monitoring this and looking for new cases.”

 

You may wonder what impact the Trump presidency will have on the new regulations and that remains to be seen, but experts warn it would be unwise to ignore the December 1 deadline. The Fair Labor Standards Act has been around for a long time — and it’s not going away anytime soon — so it’s a very good idea to get familiar with the regulations.

 

There are some great free resources out there to get you started and this one, recently published by TSheets, highlights seven of the most common risk areas:

 

1. Misclassification

8.6 million employees are currently misclassified and the consequences can be costly. It pays to know the difference between an independent contractor and an employee, and to know who is exempt from the FLSA and who is not.

 

2. Off-the-clock work

Mobile technology means more and more employees now work outside of normal hours and if they are nonexempt, this time has to be tracked and paid. This is already a common cause of disputes and more are expected after December 1.

 

3. Unauthorized overtime

When nonexempt employees work overtime they have to be paid for it, even if it was unauthorized. The rate is usually 1.5 times their normal pay but in some states, like California, the regulations demand more than this.

 

4. Breaks

 

Research shows that 4 out of 5 office workers now regularly work through their lunch breaks — but if they are nonexempt and the time is being deducted from their paychecks, their employers could end up in court.

 

5. Record-keeping

 

“To the degree that you don’t have this in place, start creating a really good paper trail,” says attorney Maria Hart from Parson, Behle & Latimer. “That’s an attorney’s best friend—to have documents that show what you were doing, not doing, and so forth. Document, document, document.”

 

6. Interns and volunteers

 

In 2015, just 39% of graduate interns were paid. But as attorney Mark S. Goldstein warns, a recent ruling could mean that more of them could be in future. “An employment relationship is created when the benefits to the intern are greater than their contribution to the business,” he says.

 

7. Regulatory changes

 

Should you be complying with state or federal laws? Or both? Are you following the latest labor department regulations? The shifting sands of labor laws makes it a challenge to get it right all of the time.

 

Disclaimer: Please refer to a professional tax or legal advisor regarding specific requirements of FLSA and how they impact your business. We do not recommend particular employee classifications or practices and leave those decisions to the discretion of your organization.