Exceeding Expectations as a Nonprofit CFO | Spire IT
The term nonprofit CFO is misleading because these executives have the same responsibilities as their for-profit counterparts. They are both tasked with providing financial leadership, accounting oversight, and strategic decision making. The difference is that nonprofit CFOs face accounting challenges that are entirely unique to mission-based organizations.
These challenges may be common, but they are not a foregone conclusion. Nonprofit CFOs who take a proactive approach can transform accounting into an asset for strong and sustainable nonprofits. The first step is to acknowledge the problem. The second step is to embrace a solution.
Daily Accounting is Overwhelming
Nonprofits are subject to specific accounting rules that make basic accounting a lot more time consuming and complex. And in addition to this inflated workload, nonprofits often get by with small accounting departments. The easy way to stay on top of daily accounting is to automate as much of the process as possible. That way accountants and executives alike can focus on more important initiatives.
Donors Demand Transparency
Organizations that depend on donors, funds, and grants must demonstrate a tremendous level of transparency in order to prove their financial stewardship. Without being able to account for every cent, nonprofits lose their credibility and their funding streams at the same time. The simple way to ensure both transparency and accountability is to integrate everything on one platform. This move ensures that accounting is always above-board and information is always available on demand.
Tech Budgets are Limited
Modern accounting is inextricably linked to technology, which is why so many CFOs are prioritizing a digital transformation. But at nonprofits where budgets are limited, upgraded financial management solutions can be too costly or confusing to implement. Nonprofit CFOs can overcome this obstacle by prioritizing cloud-based solutions that offer a suite of financial tools tailored for nonprofit accounting.
Cash is Scarce
Cash management can easily become a problem at a non-profit if funds are not tracked closely. When margins are slim and every available dollar is going to support a mission or cause, poor financial decision making can spell disaster. Nonprofit CFOs and other decision makers can operate with much more confidence if they have widespread access to financial and non-financial data alike. Exacting oversight leads to tighter financial controls and less accounting risk.
Financial wizardry does not have to be limited to the corporate C-Suite. Nonprofit CFOs can use accounting and finance to their advantage and propel their organizations upward in the process. The right leader and the right team are important, but so are the right data-driven tools.
Sage Intacct is solving the accounting challenges unique to nonprofits. And, in the process, it’s putting nonprofits in control of their own financial destiny. Get excited about what is possible, then contact Spire IT to learn more.