5 benefits of outsourcing your accounting needs
Should your organization outsource its accounting needs? An outsourced accountant will help you with everyday accounting-related tasks, such as bookkeeping, budgeting, payroll, and financial reporting. Outsourcing also demonstrates to lenders and investors a commitment to the accuracy and integrity of your financial records. Here are five potential advantages to consider when evaluating this decision. 1. […]
Accounting policies and procedures are essential for nonprofits, too
Financial reporting isn’t all about profits. Not-for-profit entities can also benefit from implementing formal accounting processes. From preparing budgets and monitoring financial results to paying invoices and handling payroll tax, there’s a lot that falls under the accounting umbrella. Are these tasks, and others, being managed as efficiently at your organization as they could be? […]
Operating reserves can help cushion financial blows
First, the COVID-19 pandemic wreaked havoc on not-for-profit finances and operations. Now, many organizations are worried about how high inflation and a possible recession might interfere with their plans. To help prevent service disruptions and other negative outcomes, focus on building up operating reserves. Even if you can afford to divert only a small amount […]
5 tips to help you prepare for year-end inventory counts
How accurate is the amount reported in your company’s perpetual inventory system? To best answer that question, a physical count is essential at year end. For calendar-year entities, year end is fast approaching on December 31. Planning tips Though physical counts may be seen as time consuming and disruptive, a well-executed count of what’s on-hand […]
The audit is over. Now what?
Whew! That’s probably your reaction when outside experts announce that their audit of your not-for-profit is complete. But even if auditors have left your premises and returned the documents they’ve reviewed, the work isn’t really over. Not only do your executive director and board need to review the audit report, but it may be necessary […]
A financial dashboard can take your nonprofit where it wants to go
Does your board have a quick and easy way to assess your not-for-profit’s financial performance? It does if it has a dashboard with carefully chosen and up-to-date key performance indicators (KPIs). Waters|Ortiz can help set up dashboards to provide critical information to multiple audiences regarding specific goals and fundraising campaigns. Here’s how you can get started. […]
New accounting rules for supplier finance programs
Does your company use supplier finance programs to buy goods or services? If so, and if you must adhere to U.S. Generally Accepted Accounting Principles (GAAP), there will be changes starting next year. At that time, you must disclose the full terms of supplier finance programs, including assets pledged to secure the transaction. Here are […]
Lost your tax-exempt status? Here’s how to regain it
So you forgot to file your not-for-profit’s Form 990, 990-EZ, or 990-N with the IRS. It can happen — particularly with newer organizations that are still trying to get a handle on all the financial and regulatory requirements of running a nonprofit. However, if you forget to file three years in a row, you could face […]
FASB proposes last-minute changes to lease accounting rules
Accounting Standards Codification Topic 842, Leases, requires organizations to report the full magnitude of their long-term lease obligations on their balance sheets — a historic first. For private companies and nonprofits, the changes take effect this year. Public entities adopted the rules in 2019. While the Financial Accounting Standards Board (FASB) conducts its post-implementation review […]
How Auditors use Benford’s Law to Detect Fraud, Data Manipulation, Processing Inefficiencies, and Other Errors
An interesting tool called Benford’s Law can be effective in detecting fraud. But it also can be used during external auditing procedures to test journal entries for unusual numeric patterns. Here’s what you should know about this statistical technique, including its potential limitations. Random data sets According to Benford’s Law, in sets of random data, […]