Financial Technologies & Management- E-Newsletter for March

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.   Please feel free to click on any of these areas to learn more and register for these upcoming financial management training.

• Financial Management Training-Topics include Overlooked Benefits of Outsourcing Nonprofit Accounting or Why your Nonprofit should be using Nonprofit Accounting Software?
• Nonprofit Financial Forum and MIP User Group-Our plan is start these back up so stay tuned
• MIP Fund Accounting-General Ledger, Accounts Payable, Accounts Receivable, Reporting, Financial Statements, and Drillpoint-Each webinar is 2 hours.
• Nonprofit Finance Certificate-Effective Financial Management and Leadership-first part is focused on bookkeeping and accounting; and second part is focused on controller, CFO, and leadership roles.

Please contact us if you have any questions or feedback about our upcoming live webinars.  Feel free to check out our FTM blog or book a meeting on my calendar.

Best Regards,

James Simpson, CPA, CFE, CITP, and CGMA.

Your Nonprofit should have multiple and different Revenue Streams

Multiple types of revenue streams help create a financially health nonprofit and it expands your network and influence.

Nonprofit revenues are typically provided by the following sources:

• Individuals
• Donor Advised Funds
• Corporations
• Foundations
• Bequest
• Endowments
• Special Events
• Government
• In-Kind Contributions
• Rental Income
• Sales Income
• Investment Income
• Program Service Income

It is important you know your organization's revenue sources so you can see where you are at currently and which revenue source you might consider adding in the future.

The full article provides further details on different revenue streams.

Differences between Nonprofit and For Profit Accounting

On the surface, you might expect the accounting for a nonprofit to be similar to traditional business accounting but accounting is much different as nonprofit focuses on its mission and business focuses on its profits.

We will look at the critical differences between nonprofits and for profit accounting so you can remain compliant and better manage your organization.  The key differences are as follows:

• Nonprofit is owned by public not an individual
• Nonprofit Accounting tracks various funding sources and programs and not business activity
• Nonprofits tracks excess of revenue or expenses to be used to further the mission of the organization and doesn't distribute earnings to shareholders.
• Nonprofits are typically exempt from income taxes but must file for Form 990 to disclose the accounting to the public.
• Income classifications and donor restrictions need to be tracked
• Cash reserves are typically essential for nonprofits as cash flow is typically not consistent and keeps organizations from going into debt.

The full article provides a detailed explanation of these differences and provides additional insights.

Eight reasons to outsource your nonprofit accounting

The current employment market has nonprofits looking more externally to obtain necessary accounting talent and seeing significant increases and retention issues with internal accounting staff.  In this current environment, organizations need to look at where they should hire internal staff or externally outsource various accounting functions of their organizations.

With limited resources, a nonprofit can outsource some or all its financial functions, which can help a nonprofit efficiently staff and conduct its financial operations. It also respects the board and executives limited time or expertise to manage the finance functions.

Many nonprofits lack the funds to hire a full-time accountant and usually hire an unqualified and untrained employee ends up performing the accounting role with no backup plan if this employee leaves the organization.

Here are eight overlooked reasons to outsource accounting

1. Improved efficiencies
2. Reduce costs
3. Reduced fraud threats
4. Higher level of expertise
5. Ability to scale
6. Accounting software expertise
7. Manage your finance and accounting function
8. Stay current with regulations and laws

Please click the full article for detailed description of these eight reasons.

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.

Our system review recommendations will include the following:

• Software training needs
• Better utilization of modules
• 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 here to schedule your FREE systems review with an initial up to 60 minute consultation.

Please click for the full article for a discussion about why your organization needs to schedule a FREE MIP system review..

Our firm provides all the levels of accounting your nonprofit needs including bookkeeping, accounting, controller, CFO, and software advisory services for nonprofit accounting software including MIP, Microix, QuickBooks, Sage Intacct and AccuFund

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