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UKWorking in the Nonprofit sector and concerned that your organisation has outgrown its existing finance system? Needing robust, accessible software to organise reports, track funds, and, ultimately, keep donors onside?
Here is one crucial question to ask yourself: “Does your current system meet the same business requirements today that it did when it was installed?”
If the answer is no, then it is almost certainly time to consider investing in new software, one that will future-proof financial processes, ensuring you keep pace with the demand of your organisation’s mission. To avoid reaching a critical point where the business system is no longer enough, we’ve outlined five key questions you can ask yourself, and colleagues about your organisation’s operations.
If you’re interested in how Xledger can realign your finance team with your Charity or Not-For-Profit’s mission, get in touch today.
Historically, financial workflows have been heavily paper- or- Excel-based. Companies without scalable finance systems are stuck with repetitive manual tasks. As such, knowledgeable workers are kept in a cycle of task completion, instead of strategically analysing data to aid decision-making.
Some charities have taken the step of connecting their financial system with a document management system to reduce manual tasks, but multiple systems with different logins or security often create their own problems.
Automating data processing reduces repetitive or regular tasks, and saves time. This frees up time for the team to create value while increasing job satisfaction. In addition, built-in document management systems ensure that all information, such as transactions or registers, is stored in one place.
Nonprofits rely on year-end figures to thank the correct volunteers, donors, and supporters, and make a case for new funding. As such, organisations that report outside of current systems may struggle to access real-time year-end data.
By their very nature, financial reports are out of date as soon as they are published, as live data continues to flow. This is made even worse by the days or weeks of compilation and analysis that occur before the reports are presented.
Calculate how much valuable time is wasted issuing budgets or revenue and expense reports for your organisation; do you think the process could be more efficient?
With a modern financial system, you can create reports based on real-time data. Additionally, your finance department can save valuable time through configurable roles and dashboards.
If department heads and board members gain access to real-time reports themselves, you can give valuable time back to your finance department so they can do what finance teams do best: analyse and advise. And, in nonprofit organisations, this skill is the backbone to seeking donors and gaining funds.
Nonprofit organisations tend to analyse large amounts of data in multiple spreadsheets outside of legacy systems. Data is exported from the financial system to Excel, analysed, and sent around for approval or validation before finally being sent back to the system.
This approach leads to inefficiency and duplicate Excel sheets with different versions of data circulating in the organisation. Important reports are left vulnerable to errors and the risk of decisions being made based on incorrect data skyrockets.
Modern financial systems have multidimensional reporting tools built into the system that provide real-time accessible data. Implementing a system that all necessary employees can access allows for analysis of the numbers, from the overall level down to the transaction level. In turn, the nonprofit gains insight and control of financial data from within the organisation.
A major challenge that many charities face is how to access business systems remotely. In the age of cloud-based technology, such a basic requirement is non-negotiable when working within the nonprofit sector.
Many outdated legacy systems require people to be on-site to perform basic financial tasks and any system updates or bug fixes. Likewise, when trying to access these on-premises systems remotely, finance departments must resort to using slow and unreliable remote or VPN connections without the guarantee of real-time accurate data.
A cloud-based ERP system can solve that challenge. With an ERP system based solely in the cloud, your finance department can access essential data from anywhere—all they need is an internet connection. This means that all financial tasks from invoicing to reporting can be performed without any restrictions on time or location.
In an era where remote and hybrid working is the norm, the cloud is the optimal tool for your finance department to gain smoother and more efficient daily operations.
With a cloud-based business system, you get ongoing upgrades and updates without the risk of expensive consulting hours or system unavailability.
In legacy systems, upgrades typically involve pricey consulting hours and downtime. Or worse, the lengthy processes surrounding software updates mean your nonprofit has to run on an earlier software version for weeks or months.
Switching to a cloud-based system guarantees you are always up to date, compliant with laws and regulations, and working in the latest version.
For many charities, overhauling financial business systems is a necessary step toward efficient business management, but one that is not prioritised. To understand how to configure your finance systems to access real-time data, book your free demo today.
We met with the Finance Operations Manager in the spring of 2022 to understand what they thought of their experience with Xledger and the value it has added to their organisation. Trussell is a national charity that exists so we can all be free of hunger.
In the webinar we will explore:
We break down the benefits and drawbacks of three major changes within the new SORP for charities, with insight from industry experts on how the changes may affect organisations in Scotland, the Republic of Ireland, England, and Wales.
Speak to one of our dedicated team members for more information on how Xledger can support your business.
