How confident are you in your nonprofit's financial health? 🤔

We’re sharing a compilation below that can be helpful in assessing yours, in case you haven’t recently. 

Financial Health Checklist for Nonprofits

Regular Bookkeeping

• Maintain up-to-date financial records

• Perform monthly reconciliations Budget Management

• Develop and adhere to a realistic budget (can’t stress this one enough!)

• Regularly review and adjust the budget as needed (this can be tricky but can absolutely be a game changer for continual performance evaluation throughout the year) Grant Reporting

• Keep detailed records for all grant-related expenses (no getting around this one!) 

• Ensure timely and accurate grant reporting (calendars, deadlines, oh my!)Cash Flow Monitoring

• Track cash flow regularly to prevent shortages 

• Plan for future expenses and income (this can be a game changer for most smaller to mid size nonprofits, in particular) Financial Statements

• Prepare monthly financial statements (Balance Sheet, Income Statement, Cash Flow Statement)

• Review financial statements with the board regularly Internal Controls

• Implement strong internal controls to prevent fraud

• Segregate duties among staff to ensure checks and balances Compliance

• Stay compliant with local, state, and federal regulations (payroll tax, sales tax, solicitation licenses, etc.) 

• Conduct regular audits and reviews (these do not have to be scary!) Reserve Funds

• Maintain an emergency reserve fund (after almost 20 years we can’t say enough good things about this tactic!) 

• Regularly contribute to the reserve fund (or this one!) Financial Training

• Provide financial training for staff and board members (we can help with this!)

• Stay updated on best practices and changes in financial regulations (this too!) Professional Support

• Engage with financial experts or accountants for complex issues (that’s us)

• Consider using professional bookkeeping services like ImagineNew (hi, nice to e-meet you!)

Asking again for a friend, how confident are you in your nonprofit's financial health? 

Contact us if you’re not sure if your organization could benefit from some of the above resources and options.

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