The Importance of Accounting Manuals

Accounting manuals are key to any organization, regardless of the type. Although the task of creating an accounting manual might seem daunting, it is a worthwhile endeavor. This blog post will explore the benefits and identify the key components of an accounting manual and as an added bonus you can download a typical table of…

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How to Build a Powerful & Strategic Nonprofit Dashboard

A dashboard allows a nonprofit to monitor both the effectiveness of this enterprise or business model, as evidenced by the organization’s financial health, and the impact of the programs and services being provided. The process of developing a powerful organizational dashboard should be inclusive and based on strategy, but the metrics should be sparing—with a…

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Cash Flow Management for Nonprofits

Cash flow management in any organization is nothing more than the mix and timing of cash receipts and cash payments.  In its most simplistic form, it is cash in and cash out and, ultimately, it is where budgets, projections and forecasts meet reality. It is critical to ensuring that funds are available to pay the…

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The Importance of Investment Policies

5 Steps for Nonprofits to Develop a Wise Investment Policy Nonprofit boards have a fiduciary responsibility to protect the organization’s assets and ensure that they’re used to further the mission.  Often, an important part of the board’s responsibility is deciding how to invest the nonprofit’s cash. That requires implementing a sound investment policy that balances…

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The Importance of Reserve Policies

5 Keys to Develop Your Operating Reserve Policy Every nonprofit needs to have sufficient cash flow to meet obligations. Setting aside an operating reserve is a smart practice as it provides a cushion against unexpected events that could temporarily impact the cash flow. Following are five best practices to follow when establishing your operating reserve…

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Is Cash or Accrual Accounting Better for Your Nonprofit?

One of the fundamental decisions a nonprofit organization needs to make is whether to use the cash or accrual accounting method. The method you select will determine how you classify, record, and report on your income and expenses. What is the cash method of accounting? Under the cash method of accounting (cash-basis accounting), revenue is…

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