How cloud accounting can help charities and not-for-profits run more efficiently
17 November 2021
There are some great cloud accounting tools available that allow not-for-profit (NFP) organisations to run a lot more efficiently, cutting out a lot of the administration that has previously bogged them down. The first step in deciding on the right cloud accounting system for your organisation is to work out what your current processes and requirements are.
Do I need a cloud accounting system?
All types of businesses can benefit from a cloud accounting system but if your NFP answers yes to some or most of these questions, there’s a good chance you’ll be able to run a lot more efficiently with cloud accounting.
Is document processing taking a good chunk of your day?
Is it a hassle having to get the managers or trustees to sign off on expenditure?
Are you double or triple entering data in different places?
Is the monthly process of compiling board reports time-consuming and inefficient?
What does cloud accounting do?
Cloud accounting systems integrate and streamline your financial information, so all your data is available in the one place whenever you need it.
Alongside your core accounting software, there are cloud systems that allow for seamless bill processing, with automatic scanning and reading of invoices, entering them into your accounting system without you needing to even touch the computer. These are automatically stored in the cloud available for easy access at any time on any device.
Sitting alongside this are cloud-based approval systems which allow for approval of expenditure by managers or trustees. It attaches all the documentation auditors require to fulfil this obligation and ends in automatic batch payments to allow for payments from the bank.
How does cloud accounting help NFPs?
With all of this integration and streamlining of processes, cloud accounting systems facilitate your organisation’s ability to collate the information with a robust reporting tool, minimising the amount of work required when compiling board reports.
With the right reporting tool all the information required will seamlessly flow into a reporting pack that you can then provide to the Board. A robust reporting tool will allow for non-financial measures as well as financial. For a non-profit these can be things like health and safety numbers, how you are tracking against contract obligations, budget tracking on projects, staff satisfaction, analysis of donations received and any other relevant performance metrics.
Selecting a cloud accounting system
Once you understand your current processes and requirements, you’ll need to match these against the cloud accounting systems available to find one that meets the majority of your requirements. From there, a robust implementation plan is required to help seamlessly integrate the system with other technology in the business without disrupting operations too much.
The team at Findex can assist you through the end-to-end process of selecting and implementing a cloud accounting system for your business. Get in touch with the Accounting and Business Advisory team so we can help you make an easy and straightforward shift to the modern world.