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Jul 23
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The Changing Role of the Financial Professional Part III: Critical Skills for Accounting Leaders

By | Technology, Uncategorized | No Comments

 

Welcome back to our three-part series on the Changing Role of the Financial Profession. In Part I, we looked at what’s driving changes. In Part II, we looked at just one of those drivers, automation, and how it can be used to your advantage. In Part III, we’ll look at how the evolving role of technology is changing the critical skills needed for accountants and what skills organizations look for among its finance and accounting leadership.

Automation Changes Everything

As we’ve seen in Parts I and II, automation changes everything in both the for-profit and not for profit world. Automation enables organizations to save time, streamline processes, and access real-time data. Cloud-based finance and accounting systems, fundraising and donor management systems, and new grant management software enable organizations to simplify and automate many processes.

Organizations that once tracked grant applications using cumbersome spreadsheets, for example, can now use grant management systems to monitor applications, resources, deadlines, and status of grants. What was once a complicated process that involved plenty of cross-referencing links in multiple documents can now be accomplished easily through one central database.

The same goes for accounting and financial management software for nonprofits, such as Abila MIP Fund Accounting, which can track revenue, expenses, and margin to ensure that funding meets the demand for program services. With such automation at your fingertips, you can spend the time you used to take to manually update systems to work with program directors and others on their budget needs as well as other projects.

The Skills You Need to Succeed in Today’s Nonprofit Accounting World

Given that automation now takes over many of the tasks accounting and financial professionals once performed in the nonprofit workplace, what skills are now in high demand?

  • Data analysis: The ability to analyze data and offer insights offers many opportunities for accounting professionals to lead in the context of nonprofit decision making. Not everyone can review financial data and understand the ramifications of specific decisions, for example. An accounting and financial professional can offer invaluable advice and insight into data found in the financial systems and guide others based on that information.
  • Communications: In addition to the ability to review and interpret crucial financial information, accounting leaders must be able to articulate their findings to non-financial professionals, especially in the context of nonprofit leadership. Financial information comes under scrutiny at board meetings, constituent meetings, and internal staff meetings which requires an accounting and finance professional who can explain to the average person exactly what the data means and its impact upon the organization.
  • People skills: “People skills” are often thought of as secondary ‘soft skills’ in the accounting and finance world. But emotional intelligence, cultural intelligence, and other people skills set leaders apart from the rest. They help professionals lead with compassion and empathy, and motivate and inspire others to achieve their best. Today’s nonprofit accounting and financial leaders must have strong people skills to achieve success with their teams.
  • Technical abilities: You may work for a large organization with a dedicated IT department or a small nonprofit where you are the IT department. In both cases, you’ll still need technical abilities to navigate new software, assist with software selection, and utilize your current systems to their fullest capacity. Nonprofit accounting and finance leaders must have at least passing familiarity with the current slate of software available to help manage all aspects of finance and accounting, including membership, donations, grants, and more.

The nonprofit world’s technology evolves alongside that of its for-profit business counterparts. With the ever-expanding array of technology available to nonprofit accounting and finance leaders, all skills – quantitative, qualitative, and management skills – will be needed to help organizations remain cutting-edge and relevant for years to come.

In case you missed it:

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.

Jul 16
0

The Changing Role of the Financial Professional Part II: Automation Experts

By | Technology, Uncategorized | No Comments

Welcome back to the second of our three-part series on the changing role of the financial professional. As new technology evolves, such as accounting and financial management software, fundraising and donor contact management systems, and more, financial professionals may wonder what the future holds.

In Part I of this series, we talked about what’s driving these changes: constituent demand, artificial intelligence, and improved automation. Today, we’ll take a look at one of these change drivers: automation. How is automation changing the way accounting professionals work? How can automation be used for added constituent and organizational value?

Automation, a Driver and Enabler of Change

It’s difficult to recall a time when automation wasn’t present in the workplace, but not too long ago, many automated processes we take for granted were once manual tasks. Bank tellers once tallied up a customer’s account by hand, manually adding sums as they made deposits and entering the amount with pen and ink into a portable ledger eventually known as a bank book. Now, the computer updates in seconds what took the teller minutes to do; and a receipt from the teller’s terminal provides us with the proof we’ve made a deposit and our current balance. We can look up our bank balances online, write checks and pay bills, and all with the touch of a button.

Automation now provides accountants with simple, push-button technology to update many critical systems at their nonprofit. For those still using spreadsheets to provide financial data, it’s time to rethink spreadsheets and manual data entry and consider automated accounting and financial management software for a nonprofit.

Such software not only saves time, as in our bank teller example but prevents mistakes. Consider how easy it was years ago for those old-fashioned bank tellers to make addition mistakes and end up accidentally shortchanging or perhaps crediting customers with too much. The same thing happens in a spreadsheet, only the spreadsheet perpetuates the mistake as it potentially carries the error over into multiple formulas, columns, charts, and graphs!

Automated systems take away much of the potential for error. They seamlessly gather data from different sources, updating in the background. Cloud-based systems offer the ability to connect websites with financial systems so that sales of membership materials, books or periodicals, or donations can be accepted online. The system automatically updates the ledger, providing you with immediate and timely updates on the financial status of the organization. That’s a compelling reason to embrace automation.

More Time to Add Value

Another area in which automation can help accounting leaders is by freeing up valuable time to attend to more critical duties in your organization.

An accountant who no longer has to add up every penny in the general ledger has the time to think critically about budgets, expenses, and program needs. They have the time to advise department managers on cost-saving measures, work with the marketing team on donor campaign data, and are generally more available to help all staff. The result is an accounting leader, not just a manager, but someone who has the time to advise, consult, and add significant value to the daily workings on the nonprofit organization.

AI and Machine Learning

As the world turns automates ever more, new software will use machine learning and artificial intelligence (AI) to remember and act upon common data needs as well as to retain and recall frequently required items. New systems offer voice-activated commands, simple remembered queries, and customized interfaces based on what the system ‘learns’ from its interaction with you and your team.

We’re at the beginning of a new era in the world of automation. As software evolves, the role of the accounting professional evolves alongside it. In Part III of this three-part series, we’re going to take a look at the skills that accountants need in this ever-changing world of technology. Check back soon for our new article.

 

 

 

In case you missed it:

The Changing Role of Finance Professionals in a Digital World: Part I

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.

Jun 11
0

Using eBay for Fundraising Auctions

By | Fundraising, Uncategorized | No Comments

eBay, the ubiquitous auction website, offers more than a platform to sell off old clothes or knickknacks you no longer want. It has become a powerful forum for nonprofits to raise funds.

The Nonprofit Times reports that eBay for Charity helped nonprofits generate a record $102 million in 2018. Many charities use eBay as a fundraising auction platform. Warren Buffet, the famous financial expert, helped raise $3.3 million for a human services charity auction via eBay. The charity auctioned the opportunity to enjoy a meal with the financial whiz (and the chance to ask him for tips!). Other charities have raised more modest funds, but many are using eBay as a reliable fundraising outlet.

eBay for Charity:  Four Opportunities

eBay for Charity offers nonprofits four ways to raise funds via the site:

  1. List your nonprofit on the website: Individuals can find and ‘favorite’ the nonprofit of their choice. When they shop on eBay, a portion of the proceeds is sent to their selected nonprofit.
  2. Donate directly: eBay sellers can check a box off during the listing setup process to indicate that a portion of their fees and/or sale goes towards a charity.
  3. Charity auctions: Nonprofits can set up a charity auction on their own, or a series of charity auctions, using the platform.
  4. Direct sales: You can also set up shops and stores on the popular site to sell goods with the proceeds going to the organization.

Does It Work?

Many people express skepticism about the site’s ability to help charities fundraise. After all, isn’t eBay a place for good bargains, discounts, and used goods?

Yes, and no. Over the past several years, the site has evolved as a viable shopping platform, a place where entrepreneurs can set up their online stores at a fraction of the cost of self-hosted sites and stores. Many run their entire businesses via eBay, either selling new goods, reselling goods, or using a combination of sales and auctions.

Warren Buffet’s charity raised over $3.3 million, as we mentioned above. Are other nonprofits raising money using the site’s features for charities? A press release issued by the company makes it clear that yes, they are:

  • The Prince’s Trust, a U.K.-based nonprofit headed by Prince Charles, raised about $138,000 in just 24-hours. The campaign promises to help budding entrepreneurs ages 18-24.
  • Homes for Our Troops, a USA-based nonprofit that helps veterans, raised $160,000 to build specially designed handicapped accessible homes for severely injured veterans. The nonprofit used a 10-day auction format to raise funds.
  • Seattle Goodwill: Goodwill stores offer clothing, furniture, and other items at retail shops around the nation. However, the Seattle store recognized the power of reaching a wider audience and listed their items in an online store powered by eBay. The store quickly realized that they were making much more money online than in their stores, with goods selling far above the asking price.

These are just a handful of stories shared by the company to demonstrate how different nonprofits use the site to raise funds. But doesn’t it give you some great ideas? For example, you can:

  • Run a celebrity auction: Like Warren Buffet’s donated dinner date, how about seeking a local celebrity for a charity meal auction?
  • List donated items: List donated items in an online store or auction site and promote the event to your email list. Make sure you have a suitable donor contact list and donor management software to run your campaign.
  • Ask your followers and fans to select your charity as their desired nonprofit on the site. This way, whenever they purchase on eBay, a portion goes automatically to your nonprofit.
  • Encourage people to list items for charitable sale and donate the profits to your organization. It’s fast, easy, and straightforward.

Are you ready to try eBay for Charities? Sign up on the site, and let the fundraising begin!

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.

Nov 27
0

Internal Controls & Abila MIP Fund Accounting™

By | Accounting, Audit, CPA, Internal Controls, Nonprofit, Uncategorized | No Comments

Internal controls provide safeguards against losses, thefts and mistakes. An old-fashioned way of keeping internal controls may be to have one staff member count out the petty cash box while another watches the process. The watcher in this case is the internal control. An extra set of eyes on the counting process keeps the person holding the cash in hand from making “mistakes”, whether intentional or not, when it’s handed over for counting.

Implementing internal controls can be easy! Our “Internal Controls for Nonprofits: Best Practice Resource Guide” can help your nonprofit establish best practice principles, policies, and procedures.

In larger, automated accounting systems for nonprofits, such as those that run Abila MIP, internal controls are built into the system. By automating many of the financial processes, it becomes more difficult for someone to circumvent the system and steal from your nonprofit.

A publication from the Virginia Society of Certified Public Accountants brings home the point that good internal controls, through the use of Abila MIP fund accounting and processes around them, can help prevent loss and “keep honest people honest.”

Safeguards Against Loss: Simple Internal Controls

The first and best internal control is to avoid handling cash when at all possible. It’s not that cash is bad, it’s just that it can be “lost” more easily than money that is already in the bank account and tallied in Abila MIP fund accounting.

A system of checks and balances keeps careful watch over your finances. A few internal controls to keep losses to a minimum:

  1. Lock checks and cash in a safe or drawer both during business hours and afterwards.
  2. Monitor access to the keys.
  3. Make it a rule that all employees, regardless of their job title or function, must have another employee present when opening the safe or cash drawer, and counting out money.
  4. Don’t let checks and cash pile up in the office. Make a bank deposit when the threshold reaches a certain amount.
  5. Use timecards to monitor hourly workers’ wages.
  6. Have a manager review timecard information regularly to ensure no one is ‘padding’ the hours.
  7. Do not let anyone borrow funds from the organization’s accounts for personal reasons, or use business credit cards for personal reasons.

Acting Swiftly

It is important to have written policies in place regarding fraud and theft so that you can take the appropriate steps to document, correct, and if necessary, terminate employees who circumvent or ignore internal controls. Depending on the circumstances, your organization may also have a zero-tolerance policy for theft, and a written policy regarding grounds for termination should include such information.

Take steps to create policies and internal controls for your staff. Train and teach them their expectations. Set in termination policies in place. Know who is handling your accounts, who has access to cash and checks, and how such resources are handled. Keeping track of your finances using good fund accounting software is a way to detect fraud and act swiftly.

Abila MIP Fund Accounting

Abila MIP Fund Accounting includes fraud protection and analysis within the system, so you can use the data within it to detect patterns of losses, analyze data, and prevent fraud.

Most losses do not occur in isolation. People find that if they can get away with one theft, they return and try again. This leaves a footprint or a recognizable pattern. Data ran from your fund accounting system may be able to display such patterns so that you can take immediate, corrective action.

At Welter Consulting, we want to help our nonprofit customers prevent losses and fraud. By utilizing good nonprofit fund accounting software, such as Abila MIP, you can keep careful track of all of your accounts and detect suspicious activity quickly.  Click to learn more about Abila MIP fund accounting.

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.