Financial Technologies & Management- E-Newsletter for April, 2021
Upcoming Live Webinars
We hope you find our monthly E-Newsletter useful for your nonprofit organization. We have refreshed our E-Newsletter for 2021!! We hope you find our changes helpful and useful for your organization and appreciate your feedback and support.
We know everyone is suffering from webinar fatigue from last year, but we feel it important to continue these webinars into 2021. We also plan to start making more recorded webinars available to you as well. We would encourage you to review our video resources from past nonprofit forums, mip user group meeting, and financial management training. Please click here to access our video resource library for recorded live webinars.
These live webinars will help Nonprofit Leaders, Treasurers, Executive Directors, Finance Directors, Finance Staff, and other Nonprofit Staff.
Our upcoming live webinars for financial management training are broken into the following areas. Please feel free to click on any of these areas to learn more and register for these upcoming financial management training.
- Financial Management Training-Topics include Overlooked Benefits of Outsourcing Nonprofit Accounting or Why your Nonprofit should be using Nonprofit Accounting Software?
- Nonprofit Forum and MIP User Group-We have placed these on hold for 2021 so we can take this time and reach out directly to you. However, our previous nonprofit forum and mip user group webinar are accessible from our video resources page.
- MIP Fund Accounting-General Ledger, Accounts Payable, Accounts Receivable, Reporting, Financial Statements, and Drillpoint-Each webinar is 2 hours.
- Nonprofit Finance Certificate-Effective Financial Management and Leadership-first day is focused on bookkeeping and accounting; and second day is focus on controller, CFO, and leadership roles.
- NFP CFO & Peer Group-FTM and Indiana CPA Society have partnered to facilitate this live event. The peer group determines those topics so please provide your feedback. The group meets on the 3rd Thursday of every other month starting in February.
Please contact us if you have any questions or feedback about our upcoming live webinars.
Budgeting must be more flexible in uncertain times
In contrast to traditional budgets, a flexible budget should include a range of scenarios which could include best, worst, or expected scenarios.
A bare bones or worst case budget will show you what expenses are truly crucial to your organization.
A expected budget would also add in optimistic income and incremental expenses based on the assumption that incremental expenses will only be incurred if new funds are secured.
A best case budget will include all realistic and optimistic income achieved which will allow you to include all your core and incremental expenses.
It is important to prepare a cash flow projection with your accrual based budget to anticipate any cash flow problems with the approved budget.
Contact us to help you develop a more flexible budget process to help your financial stability during these uncertain times.
Analyzing Financial Information Using Ratios
Nonprofit Organizations spend the majority of their time trying to understand their financial reports. However, much can be learned from the analysis and interpretation of what the financial information is telling you. For a more technical analysis, financial ratios can be used to deepen your understanding and interpretation of financial results.
Financial Ratios are useful if they are calculated using accurate reports and consistently applied from period to period. Also, they should be used in relation to benchmarks or financial goals.
We will review the most common financial ratios used by nonprofits to help them understand their financial condition. The ratio calculation worksheet is available for download. The balance sheet ratios include the current ratio and days cash of hand. The income ratios includes a reliance ratios. The expense ratios include personnel and benefit costs ratios.
Contact us to help you develop financial ratios that work best for your organization to help you evaluate your financial health.
Why your Nonprofit should consider using Nonprofit Accounting Software?
We only work with Nonprofit Organizations so we know when organizations outgrow their accounting software. For example, QuickBooks users can outgrow their software by any of the following reasons:
- Not able to produce financial reports that board, management or auditor needs
- Not able to perform grants management role to track financial results and adequately report to funder or donor
- Not able to create flexible budgets to include different scenarios or projections
- Not able to allocate costs or cost pools to multiple funders and programs
- Not able to easily segregate duties among finance department which can contribute to fraud and lack of audit trails.
- Not able to integrate with other third party systems like payroll, fundraising, human resources, and accounts payable automation. These modules are available in most nonprofit accounting software packages
- Not able to track financial information different ways as tracking needs change over time.
Please contact us for FREE software evaluation & assessment
MIcroix Workflow Modules seemlessly work with MIP Fund Accounting to improve and automate your budget, payable, and timesheet processing.
Contact FTM to learn about the Microix Workflow Modules and how they can benefit your MIP Fund Accounting software.
The budget module allows your program staff to be involved in the budget process including allowing you to budget by employee salaries and benefits using your MIP distribution codes. After program staff finalize their budget, it can be submitted to a multi-level review and approval process. Upon final approval, the worksheets are automatically transferred to MIP Fund Accounting as an unposted budget entries.
The accounts payable or requisition module will allow you to automate accounts payable and expense management process for your staff. Once the requisition has been submitted and approved, it will be seemlessly transferred to MIP Fund Accounting as an unposted encumbrance or accounts payable invoice.
The timesheet module to replace your existing paper based system and start collecting employee time electronically. Enter your time via a web browser or biometric timeclock reader. Automatically creates a regular timesheet in MIP Fund Accounting Payroll Module.