![](\"https:\/\/s3.amazonaws.com\/snd-store\/a\/80205381\/11_18_22_1301048022_aab_560x292.jpg\")
<\/p>\n<\/p>\n
Financial reporting isn\u2019t all about profits. Not-for-profit entities can also benefit from implementing formal accounting processes. From preparing budgets and monitoring financial results to paying invoices and handling payroll tax, there\u2019s a lot that falls under the accounting umbrella. Are these tasks, and others, being managed as efficiently at your organization as they could be?<\/p>\n
Start with invoicing<\/strong><\/p>\n A good first step toward accounting function improvement is creating policies and procedures for the monthly cutoff of recording vendor invoices and expenses. For instance, you could require all invoices to be submitted to the accounting department within one week after the end of each month. Too many adjustments \u2014 or waiting for employees or departments to weigh in \u2014 can waste time and delay the completion of your financial statements.<\/p>\n Another tip about invoices: It\u2019s generally best not to enter only one invoice or cut only one check at a time. Set aside a block of time to do the job when you have multiple items to process.<\/p>\n You also may be able to save time at the end of the year by reconciling your balance sheet accounts each month. It\u2019s a lot easier to correct errors when you catch them early. Also, reconcile accounts payable and accounts receivable subsidiary ledgers to your statements of financial position.<\/p>\n Think through data collection<\/strong><\/p>\n Designing a coding cover sheet or stamp is another way to boost efficiency. An accounting clerk or bookkeeper needs a variety of information to enter vendor bills and donor gifts into your accounting system. You can speed up the process by collecting all the information on the invoice or donor check copy using a stamp. Route invoices for approval in a folder that lists your not-for-profit\u2019s general ledger account numbers so that the employee entering data doesn\u2019t have to look them up each time.<\/p>\n The cover sheet or stamp also should provide a place for the appropriate person to approve the invoice for payment. Use multiple-choice boxes to indicate which cost centers the amounts should be allocated to. Documentation of the invoice\u2019s payment should also be recorded for reference. And your development staff should provide the details for any donor gifts prior to your staff recording them in the accounting system.<\/p>\n Optimize accounting software<\/strong><\/p>\n Many organizations underuse the accounting software package they\u2019ve purchased because they haven\u2019t invested enough time to learn its full functionality. If needed, hire a trainer to review the software\u2019s basic functions with staff and teach time-saving tricks and shortcuts.<\/p>\n Standardize the financial reports coming from your accounting software to meet your needs with no modification. This not only will reduce input errors but also will provide helpful financial information at any point, not just at month\u2019s end.<\/p>\n Consider performing standard journal entries and payroll allocations automatically within your accounting software. Many systems have the ability to automate, for example, payroll allocations to various programs or vacation accrual reports. But review any estimates against actual figures periodically, and always adjust to the actual amount before closing your books at year end.<\/p>\n Ongoing review<\/strong><\/p>\n Accounting processes can become inefficient over time if they aren\u2019t monitored. Look for labor-intensive steps that could be automated or steps that don\u2019t add value and could be eliminated. Also make sure that the individual or group that\u2019s responsible for the organization\u2019s financial oversight (for example, your CFO, treasurer or finance committee) promptly reviews monthly bank statements and financial statements for obvious errors or unexpected amounts. Contact us for more tips on how to improve the accounting function at your nonprofit.<\/p>\n \u00a9 2022<\/em><\/p>\n <\/body> Financial reporting isn\u2019t all about profits. Not-for-profit entities can also benefit from implementing formal accounting processes. From preparing budgets and monitoring financial results to paying invoices and handling payroll tax, there\u2019s a lot that falls under the accounting umbrella. Are these tasks, and others, being managed as efficiently at your organization as they could be? […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13,7,10],"tags":[8,11,12],"class_list":["post-16399","post","type-post","status-publish","format-standard","hentry","category-aa","category-articles","category-news","tag-articles","tag-news","tag-updates"],"_links":{"self":[{"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/posts\/16399","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/comments?post=16399"}],"version-history":[{"count":1,"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/posts\/16399\/revisions"}],"predecessor-version":[{"id":16400,"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/posts\/16399\/revisions\/16400"}],"wp:attachment":[{"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/media?parent=16399"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/categories?post=16399"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sfw.cpa\/news-and-guides\/wp-json\/wp\/v2\/tags?post=16399"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n<\/html><\/p>\n","protected":false},"excerpt":{"rendered":"