Running a successful non-profit organization is a challenging task that often requires a very structured approach.
Budgeting, assisting with audits, report generation for various parties and increasing revenue are all crucial tasks that a CFO is expected to handle.
Particular attention to detail must be paid to reporting practices. This is imperative, firstly to comply with all regulations, secondly to provide information to various parties linked to the organization and finally and perhaps most importantly, to ensure funding in the future.
Common Reporting Problems
Numerous factors can destroy effective reporting practices for non-profit entities, however. These can include the following:
Challenge #1 – Reporting is Unnecessarily Complicated
Often, the day-to-day running of a non-profit organization from a financial management or accounting viewpoint, can have any number of difficulties, especially in reporting practices.
Solutions that are implemented to overcome this should allow for adaptability in both reporting and accounting requirements. This is achieved in a number of ways including:
• The accounting set-up used by the organization should support all the aspects of fund accounting.
• Maximum flexibility can be achieved through the efficient design of both chart of accounts and data structures.
• The accounting systems should allow for numerous locations and entities.
Challenge #2 – Adherence to Stringent Requirements
In today’s tough economic times, many stringent requirements face non-profit organizations especially in their fight for constant funding. Many potential donors, especially large corporate companies, will not hand over money without seeing how the donation will be used.
Excellent reporting practices and report generation can help to provide the required information needed by potential donors.
Challenge #3 – Maintaining Reporting Vigilance
It is essential that any non-profit organization not only keep track of all donations, but spending as well. Especially if they have multiple programs in place. This can help to generate various reports regarding benefactors, donations, grants, programs or initiatives.
To achieve proper vigilance over all these factors, the organization needs a single accounting system that provides centralized control.
Other aspects to bear in mind include:
- Sharing of tasks to relevant parties within the organization.
- Revisiting forecasts to keep everything on track.
- Implementing effective control measures to avert unwanted situations.
Challenge #4 – Maintaining Transparency
Nonpofit organizations need to ensure that they are totally transparent in their quest to not only secure donors, but to keep them over an extended period. All aspects of the organization’s operations should be made available to any potential donor.
Not only should any information be available quickly, but it should be clear and concise. Excellent report generation can help an organization stand out amongst the myriad of similar parties vying for donor money.
Ready for A Solution? Enter Abila MIP Fund Accounting
The Abilia MIP Fund Accounting software has many proven features and benefits designed with non-profit organizations in mind.
Abila Features Address Important Challenges
This award winning software has many excellent features essential to the day-to-day running of a non-profit organization including the following features & benefits:
- Core accounting functionality comprises a general ledger, accounts payable and reporting for accounts receivable.
- Billing and sales order entries include data import and export, bank reconciliation, budgets as well as a form designer.
- Extensive payroll and employee management system, which includes payroll functions, human resources features, and employee web services.
- Manage all aspects of purchasing such as electronic requisitions, encumbrances, fixed assets and purchase orders are incorporated.
Benefits to Your Organization
With so many solutions, the benefits for any non-profit organizations are countless. These include budget planning and maintenance, a large selection of Human Resource systems and the ability to follow and produce reports on numerous funds over specific budget period. The software can also generate a wide variety of accurate reports on all aspects of the organization.
For any non-profit organization to survive, the ability to impress potential donors and secure funds over an extended amount of time is paramount. The best way to achieve this is through an efficient report generation system, allowing potential donors financial insight into the organization.
If fund accounting is an issue in your organization, don’t wait for your donors to take notice. Contact Sygnvs today for a free demo of the Abila software.