One of the most important parts of running a nonprofit organization in Orange County is to have current bookkeeping. Knowing your numbers will help you choose the right revenue and fundraising strategies for the year. The following accounting procedures can help you keep up to date and take the right actions.
The Right Software for the Job
Many accounting software programs on the market can help a San Diego nonprofit with their numbers. In order to keep your workflow efficient, make sure that you choose additional programs that can integrate with your accounting software. If your current bookkeeping service is too basic, you may find that upgrading to the next level can help you get your numbers together faster.
Not only will an automated accounting service software solution help improve workflow, it can also prevent more instances of mistakes caused by humans. There are enormous tax consequences by failing to follow proper nonprofit accounting requirements, such as the loss of tax-exempt status. To keep in compliance with the IRS, you’ll need the most recent version of bookkeeping software and possibly the assistance of an outside accounting service.
A good thing about bookkeeping software is that it can report fund accounting. This is a requirement of the Financial Accounting Standard Board and it applies to all tax-exempt nonprofit organizations. As your account is set up and workflows are designed, the funds can be linked to recurring transactions. Therefore, as soon as the bookkeeping software is configured to your settings, tracking revenue and expenses connected with each fund will be easier.
Software that helps you with your bookkeeping service not only helps automate your workflow, but it can help with sharing key data amongst the employees and members of the organization. In some cases, board members are not available on site to authorize purchases or grants. With a digital bookkeeping service, the member can access the data file and quickly take the necessary action. This ability can help streamline operations as well as increase transparency.
In addition, a grant could have certain guidelines about the sources of funding. The accounting service or software can help tightly monitor the funding to make sure that the guidelines are met. Donors can feel at ease that their donations are being handled for the intended reason.
The right bookkeeping service and software system can help keep an Orange County nonprofit organization up to date with cash flow.