Increasing nonprofit revenue is a challenge most organizations face. By following these 6 easy accounting strategies, your nonprofit revenue can be sustainable.
Overcoming nonprofit revenue challenges
To overcome challenges, today’s nonprofit executives need to demonstrate a wide range of skills. This includes a wide repertoire of knowledge, skills, and experiences. They must make sure business operations run smoothly without losing sight of the organization’s vision and mission.
Occasionally, operational processes fall to the wayside. This happens to the best of us. Nonprofit accounting is often one of those items. We all know it’s important yet it still manages to fall off our radar. There are many benefits to keeping your books up to date that go far beyond being ready for your annual audit, grant report and filing your Form 990.
6 easy accounting strategies to increase nonprofit revenue
- Make financial decisions with confidence. With comprehensive, detailed financial statements, you will be able to report on each of your program’s activity, your support services and your overall financial health. With proper nonprofit accounting reports, you can make decisions about your each of your program’s sustainability with confidence.
- Stay on top of cash requirements. In any business, cash flow is extremely important. Knowing the status of all your receivables and payables is critical. Implementing an accrual accounting system will give you the information you need for making cash requirement projections.
- Identify potential program financing challenges early. Being able to print income and expense statements for all your program areas will provide clarity on the effectiveness of each program and whether or not you can maintain the program as an ongoing enterprise within your mission.
- Demonstrate proper stewardship of donor funds. With the integration of your donor management and accounting systems, you will be able to provide donors with ways their donations helped achieve your mission.
- Stronger collaboration with your employees and board. When your accounting, development and program team are all operating from the same information, you have a stronger team and build a sense of a common cause. By keeping your accounting up to date, you ensure everyone’s on the same page establish better communication and work harmony.
- Year-end audits become less stressful. No one likes audits. But, if you have the right financial systems in place with proper internal controls, your year end audit will be much easier for you and your accounting staff. By using the right accounting software, designed for nonprofits, you can rid yourself of that stress.
The benefits of proper nonprofit fiscal management for your nonprofit are clear. The key is ensuring this fundamental process doesn’t fall to the wayside to insure the long term sustainability of your organization to continue to fulfill your mission.
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