The voluntary sector in the UK has always been tested, whether it’s the cost of living crisis affecting how people donate or the rapid pressure of a tech-savvy world whilst trying to operate on tight budgets and limited resources. The management of charities’ finances has undergone and is still undergoing a significant transformation due to the pace of digital advancements and the increasing demand of those financially involved with charitable bodies.
As we enter a time where there could be an economic downturn, to control and manage such a rapidly changing environment, organisations should look to adapt and implement digitalisation. With the help of powerful financial tools, charities and not-for-profits can save time, and in turn, save money, and be prepared for the bigger picture.
What financial challenges are charities facing going into 2024?
Xledger’s Charity Digital Finance Report 2023 reveals that over 50% of respondents in the charity sector do not have the tools they need to forecast ahead of a recession. This paired with the challenge of the talent crisis, which 85% of finance professionals feel they are currently experiencing, there is imminent pressure on organisations to adapt quickly. The larger hurdles for charities do not only rely on accessing data quickly and forecasting and planning efficiently, but also on transparency with donors on how donations are used.
Although the fear of change is looming upon professionals, empowering teams with the right tools and training through a reputable vendor is key to achieving success in a world where the digital approach is proving to make a solid impact.
How can Xledger’s financial tools help charities face these prominent challenges?
Automation
One of the largest benefits of digitalisation for charities is automation. Spending too much time on manual data entry means financial teams are working on slow, outdated and expensive manual tasks that await human error. We know time is just as valuable as money, so having a powerful automated finance system by your side means automating simple tasks, such as prepayments and bulk billing, allows the team to save time and focus on a higher-level analysis of data. The aspiration for the finance team to act as more of a strategic partner is now a reality with the right tools in place.
Real-time reporting
Xledger provides insight into data available, both historical and real-time. Finance teams can engage with the software effortlessly, so they can analyse the data they need, in a format that works best for them. Offering real-time financial reporting, charities can provide the transparency donors desire whilst leveraging the elevated financial control of real-time reporting.
Fund reporting
Charities and not-for-profit organisations reporting is more complex than commercial organisations. To be able to successfully secure additional funding, charities must showcase their efficiency in their operations and financial management to public and private donors. With grant funders requiring detailed information on how money is spent and making sure it matches its intentions. With Xledger’s cloud-based accounting software for charities, organisations can effortlessly drill down into data and manage funding sources, and allocation of costs with increased control.
Xledger’s powerful financial tools, not only propels charities into the future by saving time and resources but also equips them to navigate the evolving landscape with agility. The importance of the finance department in steering organisations through these challenges cannot be overstated, and in the face of constrained budgets and heightened scrutiny, the right technology can make all the difference. By embracing cutting-edge accounting solutions, charities are not merely adapting to change but are actively shaping their future.
As we look ahead, it’s clear that the intersection of financial acumen and technological innovation will continue to redefine the narrative of charitable endeavours, fostering a future where organisations can thrive and make a lasting impact on the communities they serve.
