Sep 21
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7 Tips for Conducting Effective Virtual Interviews

By | HR | No Comments

It’s a job-seeker’s market right now, with more jobs open than people applying for them. In June 2021, for example, job openings in the United States rose to slightly over 10 million, an unprecedented surge.

Accounting and finance are already highly competitive job markets, with companies and nonprofits vying for the most talented professionals. In this atmosphere, employers must understand the differences between interviewing job candidates in person and through teleconferencing. More and more, companies are using technology to screen applicants, first by screening resumes and then throughout the interview process. By understanding and using the virtual interview process effectively, you can shorten the time it takes to find and hire great candidates.

7 Tips to Host Effective Virtual Interviews

  1. Invest in the right software.
  2. Send instructions to the candidate.
  3. Leave 5 minutes for a test run of the software.
  4. Prepare for the interview.
  5. Ensure adequate light.
  6. Check the sound quality.
  7. Minimize distractions.
  1. Invest in the right software.

You don’t need an expensive platform, but you do need a platform that allows for adequate time for the interview. Zoom, GoToMeeting, JoinMe, and other virtual meeting software often limits the amount of time or the number of people on a free virtual call. Investing in a simple hosted plan can help you ensure you have adequate time for the interview. If you do opt for a free package, be sure to have a backup plan ready if you decide to go over the time limit. There’s nothing worse than getting cut off in the middle of a conversation!

  1. Send instructions to the candidate.

Don’t assume that the candidate has the software downloaded or even knows how to use it. Send them simple instructions and a link to where they can download the software free of charge. Make sure to send such instructions at least twice, once when you schedule the interview and the day of the interview itself.

  1. Leave 5 minutes to test the software.

Leave at least 5 minutes between interview appointments so that you can test the software and your connection with the candidate. You may need to spend a few minutes at the start of the call getting the candidate familiar with the software, for example, if they want to do a screen share to show you samples of their work.

  1. Prepare for the interview.

Just because the interview is virtual does not make it any less important than an in-person interview. Hiring managers should prep for the interview the same as they would an in-person interview. Have the job description and the candidate’s resume in front of you, either on a second screen or printed out. Be sure to introduce yourself and explain how your position interacts with the position the candidate is interviewing for and add any information that will help the candidate understand the role, the company, or the interview process. Develop your questions beforehand and keep them handy, jotting down notes or asking permission to record the interview for reference later.

  1. Ensure adequate light.

It’s off-putting for both candidates and interviewers to speak with someone who looks like they’re working in a cave. Make sure you have a good light source illuminating your face from in front or the side. If you do not have access to natural light, invest in a ring light, a simple gadget that provides better lighting for virtual calls. These can be found in many online stores for a nominal fee and attach directly to the computer monitor to provide good lighting. Candidates need to see your facial expressions and you need to see theirs to help you both feel at ease.

  1. Check the sound quality.

Computer microphones vary in sound quality. Put on your headset, if you have one, if the candidate cannot hear you easily. Make sure you both know where the “mute” button is on the screen as well in the (likely) event of background noises: pets and children both seem to sense an important call and crash it accordingly!

  1. Minimize distractions.

Check your software to see if it has a “blur” feature for the background. If you are interviewing the candidate from home and wish to maintain more privacy, blurring the background can remove any identifying pictures of family or children or simply blur out a distraction, like interviewing from the kitchen and showing your sink full of breakfast dishes in the background. Minimize distractions by closing your office door, moving your computer to a quieter location in your home, and asking a spouse to watch young children while you’re on your call. And of course, turn your cellphone to mute, and turn off instant messaging to avoid being interrupted.

With the right software and preparation, you’re well on your way to hosting successful video interviews and finding great accounting and finance professionals.

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.

Sep 14
0

How the Pandemic Affects Compensated Absences: Something to Consider

By | Accounting, Nonprofit | No Comments

The global pandemic’s effects are still being felt in many areas. One such area is in the realm of accounting; specifically, the area of compensated absence.

What is compensated absence? It’s vacation and sick time. Many employees deferred vacation time during the pandemic since travel was so restricted. The result is a higher than usual amount of accrued compensated time off, which must be accounted for logically and systematically.

There are no FASB standards for the rate at which such time is accrued. Instead, organizations are urged to look at their record of accounting for such time off. Accountants may choose from the current rate or the likely compensation rate when employees are expected to redeem their vacation days.

The latter is easier said than done. Even though better awareness, knowledge, and testing for COVID-19 have kept much of the nation open, some employees may still be reluctant to take their vacation time. Nonprofits must develop a plan of action to handle the accrual of compensated time off.

Develop Your Plan for Compensated Time Off

To develop a plan for compensated time off, first, review your current definition of such time.

  • How does your organization define compensated time off? Many define it as vacation time, sick days, or personal days. Review your organization’s current definition and method of acquiring time off. For example, is vacation time off based on the number of days worked, or do all employees receive the same amount of time at the start of the calendar or fiscal year?
  • Does your policy allow employees to roll over such time and, if so, how long can they accrue it?
  • If they cannot roll over the time but must “use it or lose it,” are they compensated for it instead?
  • Have you made any emergency declarations, i.e., special arrangements, for employees during the pandemic?
  • Have you reviewed both accrued and vested rights? Are these in line with state and local laws and requirements?

Once you have the facts about your current policies and understand fully all of the considerations for paid time off, think about the following as you create your plan to account for compensated time off.

Accrual for Compensated Time Off

Take into account the substance and spirit of your organization’s vacation and sick leave policies, rather than the actual form. Does your organization provide a generous policy that goes above and beyond the legal rights of employees as governed by state and federal law? If so, then the liability for compensated time off should include all reasonable compensation likely to be paid.

Accountants should use historical data pertaining to compensating employee absences to make projections about the potential of unused accrued time off. This information can be used to estimate the value of lapsed compensated absences.

A spreadsheet can be helpful to estimate the possible adjusted journal entries. Having a computerized accounting system will also make the estimation process easier. Historic reports will show the average balance for accrued vacation and unpaid sick leave, which can be used as a basis to adjust for any anticipated increase due to the unusual years, thanks to COVID-19.

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.

Aug 30
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Welter Consulting Joins Formal Strategic Alliance with Top Community Brands Business Partners

By | Uncategorized | No Comments

Broader reach, greater access, and expanded networks gives this company a renewed sense of love for their mission

Welter Consulting LLC today announced that their company has joined a formal strategic alliance with four top Community Brands Business Partners including ProSoft Solutions, 1st Choice Advisors, Software Simplified, and Whittlesey Forward Advising. This strategic decision was made to further Welter’s commitment: to find customers the most affordable technology, the most powerful solution, and provide expert support.

This alliance gives Welter Consulting clients access to a greater capacity, bandwidth, and coverage while also furthering the geographical reach of those services. With a wide range of product expertise, the alliance can support clients with an impressive variety of technology needs from accounting, to networking, to hosting. It also includes increased availability for fundraising, HR, timekeeping, procurement, budgeting and forecasting, banking integration, and much more.  Clients will also have expanded access to conferences, user groups, and training opportunities.

“I went into this business because I care about my clients’ outcomes,” said Vicki Welter, Founder of Welter Consulting LLC, “I want to be a part of helping them carry out their unique goals and missions: this alliance will better equip me to achieve that.” 

With expanded communication, increased influence with Community Brands, Welter said, “As an organization, we have a renewed love for our jobs because of this expanded team environment.”

Now with easy and available access to the BDO Network, and additional expertise in any area that encompasses accounting, audit, technology, and cyber security, Welter Consulting clients have a local, highly-skilled solution at their fingertips.

Aug 18
0

Common Functional Expense Allocation Errors—and How You Can Avoid Them

By | Accounting, FASB, Nonprofit | No Comments

One of the most important questions potential donors ask themselves when reviewing nonprofit financials is how an organization uses it funds. Donors want to know that a nonprofit uses them wisely and puts most of its money towards its programs. An analysis of expenses by nature and function can tell a compelling story to potential donors and make it clear that your nonprofit is a responsible steward of its funds.

But there are several common functional expense allocation errors that occur among many nonprofits. Is your organization making these mistakes?

7 Functional Expense Allocation Mistakes

  1. No expense allocation methodology: Now that GAAP requires nonprofits to disclose the methods they use to allocate costs among programs and various support functions, it’s more important than ever to ensure that you have a reasonable allocation method. It’s assumed that nonprofits will each choose their own allocation method. What’s important is that the method makes sense (is considered “reasonable”) and that it is applied consistently. Lack of a documented expense allocation methodology is a common mistake that is easily rectified.
  2. Incorrectly classifying management and general expenses: GAAP rules (FASB ASC 720-958-45-7) stipulate that various expenses should be allocated to management and general expenses. This includes payroll, human resources, and accounting costs. In years past, nonprofits had more leeway to allocate these expenses. If your organization hasn’t updated its allocation guidelines, now’s the time to fix this common mistake.
  3. Allocating too few costs to programs: Another common error is not allocating enough costs to actual programs. An example is an accounting professional whose salary expense is allocated to management, but they provide 100% of support to a particular program. In that case, their costs should be allocated to the program instead of to the overall payroll budget.
  4. Not considering joint costs: If an activity supports multiple purposes, consider allocating it as a joint cost. FASB ASC Subtopic 958-720, Not-for-Profit Entities-Other Expenses describes the reporting requirements. Creating a systematic and reasonable basis for allocating joint costs and applying it consistently helps rectify this error. Consider and choose from among several allocation methods, too, such as the physical-units method, the relative-direct-costs method, and standalone method.
  5. Providing the appropriate level of detail: It can be challenging to provide the appropriate level of detail for the natural component of expenses in the functional expense analysis. To find the best level of detail, consider the needs of your audience. What do they want and need to know? Find a happy medium between disclosing too much and too little information.
  6. Not allocating fundraising expenses: Check that the salaries allocated to fundraising expenses are reasonable. Many organizations fail to allocate fundraising expenses appropriately. Ask yourself if the amount you are currently allocating is reasonable. You may need to make some adjustments.
  7. Misclassifying investment-related activity: Under current GAAP requirements, direct internal and external investment related expenses should be netted on the statement of activities with the investment return. Based on the new presentation requirements, such expenses should be omitted from the functional expense analysis.

Professional Judgment Is Vital

Nonprofit accounting professionals must use their judgment when considering functional expense allocation. Knowing the common errors and keeping them in mind when reviewing your organization’s financials can help you make prudent decisions that are in the best interests of your nonprofit.

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.