Are you handling finances for a charity? 

In today's world of donor accountability, it's more important than ever to account for the money that charities raise and spend.  

Examine cloud-based platforms that provide easy access to real-time data across all functional areas of your non-profit organisation: HR, accounting, payroll, and operations management. 

But first, examine why you need to cut charity financial complexity so that you can focus on strategic work rather than tedious, manual day-to-day tasks. 

Understanding non-profit financial complexity 

What is financial complexity? 

Financial complexity measures how much work is required to maintain your financial system. For instance, how difficult is it for staff and board members to understand, monitor and report on your non-profit's finances? 

The more accounts, transactions, and reports in your system—the more complex it will be. 

Why do you need to reduce financial complexity? 

Charities are under increasing pressure to show results. The best way to do this is by reducing financial complexity and focusing on the core activities that make you successful. 

The complexity of your financial operations can be a barrier to achieving results, making it difficult for you or others in your non-profit to track and report on progress toward achieving your desired outcomes.  

It may also increase the possibility of mismanagement or fraud, as well as an inefficient use of resources. 

Focus on your mission, not your accounting 

When you're a charity, your organisation's primary focus should be helping others.  

However, when you get bogged down with complex financial systems and reporting requirements that come with running a non-profit, it can be easy for this focus on helping others to slip away. You can become so focused on navigating your finances that you lose sight of their original goals.  

Define your goals

For charities, focusing on the bigger picture is key to success. Clear and measurable goals make it easier to make informed decisions that drive the organisation towards its objectives. 

Before getting too deep into fixing your finances, define your goals. This will help you determine how to allocate and use resources effectively. Make them SMART: Specific, Measurable, Achievable, Relevant, and Timebound. 

Hire the right people 

Hiring the right people to handle finances for your charity is one of the most important things you can do to ensure success. 

It's also one of the hardest, especially when trying to find someone who fits into your culture and is well-suited for their role. 

Ask questions like: 

• Is this person a good cultural fit?  
• What does that mean?  
• Do they share our values?  
• Are they excited about what we're doing?  
• Will they be happy here?  
• Do they have experience working for a charity? 
• Is this person qualified enough for their position?  
• Do they have all the skills needed for success on day one--and beyond that? 
• How much training will be required before they can start contributing meaningfully toward company goals  
• Are you willing/able to financially support such training costs upfront if necessary (or over time)? 

Increase visibility 

With goals and people in place, you're in a better position to tackle financial complexity.  

One big issue is a lack of visibility, making it challenging for your charity to keep track of your financial performance, monitor spending, and make informed decisions. 

With limited resources and staff, many non-profits rely on manual processes and legacy software systems that can be time-consuming and difficult to use. 

Please find the full extensive article here free for you to read at your earliest convenience.