Non-profits have requirements that create unique challenges when it comes to managing finances; specifically, when it comes to accounts payable and receivable. Last month, our friends from Plooto visited the Enkel office to discuss how accountants, bookkeepers, and Non-Profit business leaders can leverage new tools and automation to effectively manage their finances.
During the webinar, Chris, one of Enkel’s Accounting Managers, and Charmaine, Plooto’s head of Marketing and Growth, discussed the four key pillars to establish operational soundness when consulting with Non-Profit organizations and upgrading their back-office systems:
Board/governance and controls
Offering the ability for the board of directors to approve payments remotely is a huge benefit when it comes to workflow and efficiency. The implementation of a cloud-based payments and approvals process allows for a secure system that enables full visibility into the day-to-day movement of funds.
Recommended tools: Plooto and Lucidchart
Mitigating risk of fraud
From segregation of duties to using automation for a more effective audit trail; There are a number of ways that non-profits can mitigate risk in the organization, while also streamlining their day-to-day processes.
- Reducing cash handling by using technology with encryption of data.
- Vendor approval for movement of funds. (See deferral vs. restricted fund method)
- Tracking and controls for payment management.
- Segregation of duties within an organization and being able to assign limited permissions based on role.
Recommended tools: QBO, Xero, Plooto, Stripe, PayPal
Reducing risk of error with sound reporting
Maintaining an up-to-date and accurate set of books is an immensely important aspect when trying to grow an organization. Sound reporting offers the ability to track a number of data points, such as the separation of income and expenses by program. This information provides clarity on which programs are most financially viable and helps to guide the board of directors with financial reports that can be used to generate necessary funding and make decisions.
Recommended tools: Keela, QBO/Xero, Receipt bank, Hubdoc
As mentioned, maintaining an up-to-date set of books and records is critical for non-profit organizations. With an increase in bookkeeping and accounting related technology, organizations can ensure that transactions, modifications, and approvals are documented and easily accessible.
Recommended tools- Receipt bank, Keela, Xero/QBO, Plooto, Mile IQ, Expensify, Chata.ai
We are proud supporters of the Plooto application and are excited to have worked with their team on a number of initiatives designed to help and support non-profit organizations throughout Canada.
Our team at Enkel is always happy to discuss our non-profit bookkeeping services in more detail, as well as the different app partners and organizations that we work with. Feel free to give us a call for more information!