Financial Technologies & Management- E-Newsletter for February |
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Upcoming Live Webinars Dear {CONTACT.SALUTATION} We hope you find our monthly E-Newsletter useful for your nonprofit organization. We are pleased to provide you with access to our knowledge articles and live webinars!!
These live webinars will help Nonprofit Leaders, Treasurers, Executive Directors, Finance Directors, Finance Staff, and other Nonprofit Staff.
Our upcoming live webinars for financial management training are broken into the following areas: Nonprofit Financial Forum, Nonprofit Finance Certificate, MIP Fund Accounting, and Financial Management Training. We are planning our 2024 calendar so stay tuned.
Please contact us if you have any questions or feedback. Feel free to check out our FTM blog or book a meeting on my calendar.
Best Regards, James Simpson, CPA, CFE, CITP, and CGMA. |
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Got Independent Contractors-Get to Know Form W-9 |
Hopefully, you collected your W-9 forms from independent contractors to whom you paid $600 or more this year. The information on W-9’s can help you compile the information you need to send 1099-MISC and 1099-NEC to recipients and file them with IRS. Here is a link to the Form W-9 that you would need to request your contractors and vendors to complete.
If a contractor doesn't provide a correct TIN or doesn't sign the certification in Part III of Form W-9, you're generally required to "backup withhold" on reportable amounts. In other words, you must withhold and pay to the IRS 24% tax from future payments. If you fail to do so, the IRS may hold your organization liable for any uncollected amount.
The IRS will send you a backup withholding notice if a worker's name and TIN on a Form W¬9 don't match its records. If you receive a notice, you may have to send a "B" notice to the contractor to solicit another TIN. Several best practices can help you collect and report information about independent contractors: - Make W-9 completion part of the onboarding process
- Review every W-9 form to make sure it is complete
- Use IRS's TIN Matching service (search e services at irs.gov)
- Send annual notices to independent contractors
- Keep W-9 forms for 3 years after 1099-NEC filing
Please click the full article which includes W-9 best practices and rules to make year end 1099 production easier. |
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Importance of having a Nonprofit Operating Reserve |
Nonprofits need an operating reserve to cope with financial challenges. Operating reserve is a long-term savings account that can be used to cover short-term cash flow gaps or emergencies. The following article addresses tips on building and managing an operating reserve.
In the post-pandemic world, nonprofit organizations continue to face challenges and uncertainties in their operations such as fluctuations in funding sources, unexpected expenses, economic volatility, and increased demand for services. To cope with these risks and help achieve financial stability and sustainability, nonprofit organizations need
an operating reserve. Benefits of Operating Reserves - Enhance ability to fulfill mission during crisis or uncertainty
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Increase credibility and trustworthiness for financial prudence and resilience
- Reduce dependence on fundraising or borrrowing
- Invest in strategic opportunities like expanding programs, hiring staff, or new initiatives.
We will review calculating operating reserves, building and managing operating reserve, developing operating reserve policy, and five essentials for policies. Please click the full article for more information regarding the importance of having a Nonprofit Operating Reserve. |
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Why you should consider an Outsourced (Fractional) Nonprofit Controller or CFO? |
An outsouced controller or CFO can be a cost effective way to help you run the day to day financial aspects of your organization and save on staff salaries, benefits, and training costs. It's a flexible option that can be scaled up or down to the meet the changing needs or your needs of your organization. An outsouced controller or CFO can bring their own experience, knowledge, and strategies used by other non profits to solve similar problems increasing operational efficiency, adopt best practices, and stay compliant with accounting regulations.
Here are seven essential factors to consider when selecting an outsourced controller or CFO - Expertise in Nonprofit Accounting
- Compliance and Regulatory Knowledge
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Grant Management Skills
- Strong Communication and Interpersonal Skills
- Technology Proficiency
- Analytical and Problem Solving Abilities
- Commitment to Your Organization's Mission
As a trusted partner to numerous nonprofit organizations, we understand the financial challenges you face. If you need further guidance or assistance in why you should consider an outsourced nonprofit controller or CFO for your organization, Financial Technologies & Management is here to help. Please click the full article for a more detailed description. |
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Schedule your FREE systems review to transform your MIP Accounting system and department |
Our system review services provide recommendations on how your organization can better leverage the software. We will inventory your current systems to determine what is available, its purpose, function, and how it is used. Our systems review typically develops a wish list and we can help you accomplish these items. Our systems review will help identify where you can automate manual processes and improve efficiency. We can also recommend supplemental or advanced training, upgrades, and adjustments to your setup. Your review will contain information on how to take full advantage of your software investment. We will discuss what automation can do for your finance team by facilitating digital transformation by automating mundane tasks. Our system review recommendations will include the following: - Software training needs
- Better utilization of modules
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Reimplement software improvements
- Software data conversion and integration
- Develop transaction and financial reports
- Identify and document internal processes
Each internal process mapping provides a picture of where automation can be implemented to improve process. Please click for the full article for a discussion about why your organization needs to schedule a FREE MIP system review. |
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