Establishing a good financial system is one of the most important things you can do as a non-profit. Wise financial decisions can only be made by having an accurate, clear reporting of where your money is coming from and going to. Having a well organized bookkeeping and accounting system is essential as the tax advantages given to non-profits come with a strict duty to manage funds properly.
For many non-profits, the treasurer of the board fulfills the bookkeeping role for the organization. The non-profit saves money by having this task handled by a volunteer board member and everything works out happily ever after. Or does it?
A tremendous amount of responsibility is given to the treasurer to maintain accurate accounting records to ensure the non-profit’s existence. Not a job to be taken lightly. However, board changeovers happen and treasurers come and go. Not exactly a stable environment for such an important job. One treasurer’s system of accounting and keeping the books could be completely different from the previous ones. The previous treasurer may not have been accounting savvy, leaving the new person with a mess to sort through.
Financials should always look the same and have a clear and consistent reporting method or they are pretty much useless. Being able to produce solid, timely financial reporting can make or break a non-profit. Without accurate, regular financial snapshots the organization will be running blind. Not the business model anyone would want.
Hiring expert help is a good idea. It need not break the bank as a competent bookkeeper can keep records and maintain the books much quicker and more accurately than an inexperienced volunteer. As boards change, the bookkeeper remains, providing the board with a seamless transition and consistent reporting.
