Category

Nonprofit

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involves migrating financial data and processes from one software platform to another, typically upgrading from an outdated system to a more suitable one.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.

Jul 18
0

Three Roadblocks Keeping Your Organization from Reaching Its Fundraising Goals—and How to Overcome Them

By | Fundraising, Fundraising Software, Nonprofit | No Comments
Three Roadblocks Keeping Your Organization from Reaching Its Fundraising Goals—and How to Overcome Them

What’s keeping your organization from achieving its fundraising goals? Even though inflation is high, people still give generously to good causes. If your organization isn’t achieving its fundraising goals, here are three possible roadblocks along with ways to overcome them.

Donor Expectations Are Changing

Donor expectations have changed with the times. Some call this the “Amazon effect.” We are all so used to the great customer experience created on Amazon, with spot-on product suggestions, easily accessible wish lists, fast shipping for Prime members, and a seemingly endless array of products that it is hard to remember that a smaller business may not be able to offer similar service. But people interacting with your organization also interact with Amazon, and like it or not, the Amazons (and other big companies) of this world have taught customers to expect extremely high levels of personalization and detail in their communications.

Additionally, donors have varying communication preferences. One donor may be addicted to her phone and never misses a text while someone else eschews cellphones and prefers email or snail mail. Still others may simply drop your organization a note through their favorite social media platform, expecting an immediate response. Organizations that can adjust their approach to donor preferences and provide an omnichannel experience are more likely to maintain good relationships with donors and achieve their fundraising goals.

Roadblock One: Impersonal Donor Outreach or Marketing

If your donation correspondence begins with dear sir or madame, we need to talk. This kind of impersonal marketing is outdated. Worse, it’s ineffective. Correspondence gets sent immediately to the virtual or actual trash bin, and you’ve wasted precious opportunities to make a connection with potential donors.

Gone are the days when nonprofits segregated their communications into personal outreach and mass outreach. In ye olden days, nonprofits often saved personal outreach efforts for large donors while smaller donations received mass, generalized emails

New software and technology make it easy to personalize everything from emails to postcards. We’re not just talking about personalizing the salutation, either. Even messages can be personalized to help you reach out to donors in just the way that they prefer.

Roadblock Two: Manual Processes

Manual processes, however, often make it impossible to achieve this level of personalization. Capturing details on spreadsheets and trying to do mass mail merges into documents can be a nightmare if you have even a single field incorrect in your documents. Tracking donation responses, updating each letter personally, and sending personal notes may be fine when you’re a startup, but if you’re growing, the need for improved and personalized communication far outstrips your ability to produce it manually.

Roadblock Three: Siloed Data

Both lack of personalization and manual processes interact with this roadblock to create a situation in which organizations often fail to achieve fundraising goals. Siloed data means that data exists in separate places. It does not communicate or synchronize with other data sources, so no one data source has the big picture. One program may maintain a spreadsheet of donors while down the hall, a second group has yet another spreadsheet with donor names on it. The spreadsheets are little data siloes. It is next to impossible to use such data because often other departments don’t know it exists. And, if they do know, it’s cumbersome to use.

The Solution: Software Solutions for Nonprofits

Grant and fundraising software offer a great solution that overcomes all three roadblocks in one. Welter Consulting can help you choose the right software as well as “clean” your siloed data to ensure it is accurate and ready to import into your new software. You can move away from manual to automated processes, ensure personalization, and share data with one system. We can show you how.

Donors expect more from us today. Communications and data management have changed. But the reason your nonprofit exists—its mission—and the generosity of your donors and benefactors hasn’t changed. By using the latest technology, and embracing personalization, automation, and centralization, you can move away from processes holding you back from achieving your fundraising goals.

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 16
0

Washington Saves Program Enables Small Business Employees to Easily Save for Retirement

By | Nonprofit | No Comments
Washington Saves Program Enables Small Business Employees to Easily Save for Retirement

In 2023, the Pew Charitable Trust surveyed the state’s small business owners and found that 72% supported the idea of a statewide retirement savings program. In March 2024, Washington and 15 other states signed into effect a law that requires employers to offer a state-mandated retirement plan for the workplace by July 1, 2027. The new law is anticipated to affect up to 1.2 million workers in the state or approximately 43% of the private-sector workforce. Here’s what you need to know about Washington Saves—and how it may impact your organization.

What Kept Washington Businesses from Offering Retirement Plans?

Most people know that they need savings to augment social security to have a comfortable retirement. People working for large corporates may have 401K or 403B retirement plans, which offer a way for employees to invest their earnings now for pre-tax savings.

Yet for those who are self-employed or working for small businesses, there are considerable hurdles to saving for retirement. Small business owners stated that opening and operating a private retirement fund for their employees was cost-prohibitive, according to the previously cited Pew Study. Additionally, many business owners felt it would be too difficult to run such a program.

Washington Saves Offers Automatic Withdrawals into Retirement Savings

Business owners throughout Washington voiced their concerns, and the state responded. The new Washington Saves program makes it easy for small business owners to offer employees automatic paycheck withdrawals to fund their Roth IRAs. The withdrawals are pre-tax, and deposit money into an individual’s Roth IRA. Roth IRAs are owned by individuals, and if individuals change jobs, the Roth IRA remains the same. It does not have to be rolled over into a new retirement account when changing jobs. This makes it portable in a sense and certainly convenient for those who may change jobs frequently.

Additionally, the employer does not need to manage the account. The account is set up and managed by the individual. Individuals choose how much to contribute to their retirement account. According to Pew, if each Washington state citizen contributed just $95 a month or approximately $1,150 per year, they could greatly improve their comfort during retirement and alleviate some of the burden on state taxpayers.

Do Similar Programs Exist and Do They Really Help People Save for Retirement?

Other states have successfully launched similar retirement savings incentives. For example, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Minnesota, Nevada, New Jersey, New York, Oregon, Vermont, and Virginia all feature similar programs. Among these states, workers participating in the programs have already amassed over $1 billion in retirement savings. This is spread over approximately 800,000 workers in seven states who have been participating in the program to date. Clearly, people are eager for ways to save for retirement, and by making it easy for both employers and employees to participate, states have made it a win-win for all.

Retirement Plans Improve Small Business Competitiveness

Why focus on retirement plan opportunities for small businesses? Competition is fierce for the best employees, and people may be hesitant to leave a large corporation to join a small business or nonprofit, especially if smaller organizations do not offer retirement programs.

By making it easy for workers to save for retirement regardless of where they work, Washington has helped remove barriers to hiring workers for many small business owners. It improves their competitiveness by offering better benefits to employees. More importantly, Washington’s residents will, in the long run, be better off with greater retirement savings.

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.