Category

CPA

Jun 04
0

Fiscal Year-End for Nonprofits

By | Accounting, Accounting Software, Budget, CPA, Fiscal, MIP Fund Accounting, Nonprofit, Year-End | No Comments

For many nonprofit organizations June represents the last month of their nonprofits fiscal year, and the start of closing of the grants. As soon as fiscal and executive staff return to the office in July 2018, there will be plenty of work to do to close the books.

Oftentimes nonprofit organizations that operate around a program schedule find that closing their fiscal year at the end of June simply works better. For example, after colleges and other higher education organizations have celebrated graduations they enter a slower time making it an optimal season to close out their books.

Healthcare and human services receiving substantial funding from grants are preparing for end of July reporting requirements, making it an ideal time to get in line with parallel grant cycles. Others prefer to avoid the double whammy of having fiscal closing and tax season that start in January. Whatever their reason, July marks a new financial year of opportunity ahead.

What will your fiscal 2017 results look like, and how will you distribute them? If you close your books at the end of June your IRS tax Form 990 will be due on November 15. Audits will also start to get scheduled which include financial statement scrutiny, especially for organizations covered under OMB’s A-133 single audit act.

Some questions you and your team can be asking include:

  • Where will your organization be presenting your results?
  • Will you go beyond a normal board meeting update and provide results to your top funding stakeholders?
  • Do you also publish results to your website and/or an annual report?

Keep in mind the future funders of your organization likely expect more transparency than the ones to whom you’re delivering results today.  Getting audit ready for year-end is probably at the top of your to-do list and making sure you have all your tools in place is important.

Another way to effectively navigate this end of year season with success is to put a budget plan in place. This plan should be adaptable. If you have just started a new FY 2018 budget, think about your checkpoints and where you can adjust the plan. If you’re on the cusp of starting budget planning, though, please consider how you can build a better budget. We are offering a guide to building a nonprofit budget roadmap that can help you wherever you happen to be in your own organization’s journey.

 

Welter Consulting

Welter Consulting is a technology firm empowering nonprofit and government organizations with effective software, consulting & training that can help you with your accounting needs. We are committed to finding the most affordable technology, the most powerful solution, and providing expert support. By leveraging technology and superior reporting, our team helps to free more of your time to devote to the important work of your mission. We bridge people and technology together for effective solutions for nonprofit organizations. We are passionate professionals who choose to work in the nonprofit sector for the same reason you do – helping others. Please contact Welter Consulting online at 206-605-3113 for more information.

May 28
0

Mid-Year Budget Review

By | Abila, Accounting, Accounting Software, Budget, CPA, Grant Management, Internal Controls, MIP Fund Accounting, Nonprofit | No Comments

Let’s face it. Stuff happens. And, though you may wish your hard-fought and well-planned budget was settled, the National Council of Nonprofits says it best, “Budgets should not be ‘written in stone’ because the financial position of the nonprofit may change during the year.”

How is your nonprofit’s budget performing? Have you reviewed it since it was created and implemented? Is your revenue on target? Have any of the following occurred at your nonprofit? …

  • A shift or pivot in strategy or direction
  • Unforeseen events (natural disaster, legal, economic)
  • Organizational structure change (such as consolidations)
  • A change in funding received versus projected funding (such as receiving more or less from planned grant funding or fundraising activities)

A successful budget is one that is carefully crafted and implemented by a thorough budget team, then cautiously monitored and continuously updated throughout the year to reflect the inevitable changes affecting your nonprofit.

Download our Budget Checkup tool to put your Nonprofit budget to the test.

To learn about best practices when it comes to effectively monitoring and reviewing your budget throughout the year, download Budget Checkup: Critical Components of the Nonprofit Budget Review Process.

Feel like you have a pretty good understanding about the importance of the budget review process, but still relying on spreadsheets or an outdated solution? Join a live webinar, “Budget Lifecycle: Key Components to Budget Creation and Support” on Wednesday, June 7, for an in-depth review of how a true fund accounting™ solution can help you improve budgeting, so you can focus on your cause.

Looking for new nonprofit software to track your budget?  Answer these 5 Questions to Measure Fund Accounting System Effectiveness.

 

Welter Consulting

Welter Consulting is a technology firm empowering nonprofit and government organizations with effective software, consulting & training that can help you with your accounting needs. We are committed to finding the most affordable technology, the most powerful solution, and providing expert support. By leveraging technology and superior reporting, our team helps to free more of your time to devote to the important work of your mission. We bridge people and technology together for effective solutions for nonprofit organizations. We are passionate professionals who choose to work in the nonprofit sector for the same reason you do – helping others. Please contact us online or call 206-605-3113 for more information.

 

Dec 26
0

Technology Budget: Getting Buy-In from the Board or Association

By | Accounting, Budget, CPA, Nonprofit | No Comments

Regardless of a non-profit’s budget, the technology world is quickly revolving and to stay competitive, it is imperative to stay current on technology.  Even the simplest of computing advancements can require that some hardware or software be upgraded from year-to-year. Failing to keep up with the techno-curve can leave your organization in a deep hole that ends up costing you more in lost time, money, and resources then it would if you were able to justify the expense of upgrading.

So, we have a need to communicate how to balance the cost of doing nothing with the cost of spending on new technology in a business environment.

The need to present an annual technical budget to an association or nonprofit board may have its own unique circumstances, such as the need to adhere to strict or mandatory budgeting requirements. To meet these constraints, consider the following criteria when preparing for your annual budget review with the board:

  • Supports mission statement: Be transparent about how any funding is being used to further the group’s mission.
  • Forecasts contributions: Show how future contributions, gifts, and grants can offset operating expenses.
  • Plans for updates: Communicate how budget updates will be handled throughout the year to keep the original budget on track.

Presenting the right budget for your organization will differ materially from what is right for another organization. Each organization will have its own challenges and needs. Some of these variables can include:

  • What an organization is capable of and prepared to spend on technology.
  • Access to a discounted or donated upgraded system.
  • Ability to absorb implementation and training costs.
  • How effectively current technological resources are being used.
  • The number of staff available to participate in a technological update.

Although it may be tempting to propose that your organization adopt the latest technology can offer, generating a business case that shows an immediate and positive return on investment (ROI) using such technology may be a stretch. For example: Are you able to demonstrate to the board how your present technology is slowing your business process down to the point where it’s causing lost revenue? And can you then show how the proposed upgrade will alleviate your staff’s business challenges resulting in smoother office operations and higher revenue returns?

Your ability to identify your organizations biggest technological challenges and technology needs will help you to better outline your budgeting options to your nonprofit or association board for their review and approval. Based on a clear understanding of these options, presenting a cohesive set of recommendations that are more likely to be approved by the board becomes more certain.

By remembering the importance of comparing the ROI to the cost of upgrading, while showing the cost of doing nothing, you have a better opportunity to realize board approval of your technology budget that moves your group’s stated mission forward.

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 Welter Consulting at 206-605-3113 for more information.

Dec 18
0

The Right CFO Makes a Big Difference!

By | Accounting, CPA, Grant Management, Nonprofit | No Comments

Finding a CFO with the right skills, experience and chemistry with the organization’s leaders is critical. A CFO is more than an accountant. He or she is also a strategist. The CFO creates budgets, analyzes financial statements, provides strategic direction, and helps others in the company understand the plethora of data provided by the accounting and finance department.

When Should You Hire a CFO?

As your organization grows beyond its original size and begins to make a larger impact among its constituents, it’s natural to wonder when you should hire a CFO.  A few signs that indicate it is time to hire a CFO include:

  • The Executive Director, CEO or President is wearing too many hats. As a result, critical financial tasks aren’t getting done on time simply because the leader is too busy to handle them.
  • The organization’s finances have grown to be complex, requiring someone in the leadership chair who understands nonprofit accounting.
  • The Board of Directors feels a layer of oversight and leadership is needed to manage the accounting needs of the organization.

The right CFO will use their expertise to:

  • Bring a strategic, high-level perspective to the organization’s finance and accounting needs.
  • Build the organization’s capacity to manage its finances as it grows in size and complexity.
  • Reduce excessive workloads in the areas of finance, administration, real estate, technology or legal for the Executive Director (ED) and/or the Chief Operating Officer (COO).
  • Balance or supplement the skills of the controller or other finance team members.
  • Partner with the ED and COO to make decisions that benefit the organization from a financial perspective.

How to Find “CFO Right”

You may need to allow several weeks or months to search for the right CFO candidate.

The first task is to create a job description outlining the desired characteristics of the CFO. Focus on the necessary core capabilities, strengths, and experiences. It’s imperative that a non-profit CFO has experience with nonprofit financial management. Other core characteristics to look for among candidates include:

  • Understands non-profit budget models, contracts, and regulatory requirements
  • Knows and demonstrates passion about the organization’s mission
  • Produces detailed and precise work
  • Exemplifies strong listening and perspective-assessment skills
  • Communicates well, in a transparent fashion
  • Exercises good judgment in the midst of ambiguity

We mentioned it before, but the right CFO also has a certain chemistry with the leadership team. That’s not as an ambiguous term as you may think. Chemistry is essential to a calm, orderly, and productive relationship with the organization’s top leaders. The better they work together, the more work they can get done.

It’s difficult to assess chemistry, but allow all your top leaders to meet and interact with potential candidates. Give them time to get to know one another during the interview process. Ask them how they feel about each candidate. If you have several equally qualified candidates, you may need to rely upon the team’s judgment about compatibility as the deciding factor.

Can You Afford a CFO? Options

While hiring a full-time CFO is a great solution for many mid-sized and all large non-profit organizations, many are too small to afford or need a full-time CFO. If your organization falls into that category, there are several things you can do to afford to hire a CFO.

One idea is to hire an interim or temporary CFO. No one earns the title of CFO without building an extensive body of knowledge and experience. Bringing someone into the role on an interim or fractional basis gives the Executive Director and the organization immediate access to the many lessons learned over the course of their career, at significant cost savings.

If you’re interested in finding your next CFO or placing an interim CFO in your organization, Welter Consulting can help. 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 Welter Consulting at 206-605-3113 for more information.