As the CFO of a nonprofit, you wear many hats. You’re juggling budgets, working with managers on programs and activities, and planning for the future. If your current accounting system isn’t supporting the myriad daily tasks you face, it could add to your task list rather than reduce it.
How do you know if your current technology has reached its limits? Let’s explore this further and discuss ways in which you can support enhanced efficiency through the adoption of new technology.
The Litmus Test: Has Your Tech Reached Its Limits?
First, let’s do a quick check-in: has your current accounting program reached its limits?
Give yourself 1 point for every “yes” answer:
- Do you find yourself relying on spreadsheets to fill gaps your accounting system can’t handle?
- Does it take more than a day to produce accurate financial reports for your board or funders?
- Do you struggle to track restricted vs. unrestricted funds easily?
- Is grant reporting a manual, time-consuming process?
- Do you need to re-enter the same data in multiple places or systems?
- Are you unable to access real-time financial data without IT support or manual exports?
- Does your system make it difficult to manage multi-entity or program-level reporting?
- Do you lack automated workflows for approvals, allocations, or recurring entries?
- Is your current software not integrated with fundraising, payroll, or donor management systems?
- Do you worry your accounting system won’t scale with your nonprofit’s growth over the next 3–5 years?
Tally up the points. If you scored a three or higher, it’s time to explore your options. Scored a seven or higher? It’s time to take action! Your accounting program is holding your nonprofit back. It’s time to make the switch.
Nonprofit Cloud Accounting Systems
If your organization uses spreadsheets for its accounting or if your current accounting software is holding you back, a cloud nonprofit accounting system may be a good option. Specialized nonprofit accounting software can integrate and automate key functions within an organization, including accounting, finance, and operations. It offers more automations than the typical accounting software and can provide fund-based accounting for nonprofits that must track grants and activities back to specific programs.
A cloud nonprofit accounting system helps nonprofits:
- Monitor data in real-time: Many nonprofits experience significant fluctuations in cash flow throughout the year, depending on donor patterns, grant funds, special events, campaigns, and so on. It can be tough to track cash flow with spreadsheets or manual inputs into an accounting program. A cloud accounting system, on the other hand, enables real-time data visibility. This enables CFOs to monitor cash flow more easily and adjust course depending on the organization’s needs.
- Automate common processes: Whether it’s sending invoices or payment reminders, accounting departments often perform many routine tasks manually. A cloud accounting system can help you automate payments, reminders, invoices, and more, streamlining tasks and reducing manual efforts.
- Reporting efforts: Nonprofits face numerous reporting and compliance needs, ranging from industry requirements to fund reporting for grants. Generating reports, graphs, and charts from spreadsheets is both cumbersome and limited. A good cloud accounting platform for nonprofits handles reporting with ease, enabling you to generate various reports for individual needs. For example, you may need to generate one type of report for a board meeting and a different type of report for the year-end mailing to donors.
Cloud-based accounting systems give your nonprofit the same powerful platform used by major companies in other industries to manage their finances. If you’re feeling the constraints of spreadsheets or out-of-the-box accounting programs, explore nonprofit cloud accounting systems. The real-time visibility, enhanced automations, and improved reporting features may be just what your organization needs to support its growth.
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.
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