Managing Charity’s Finances and Bookkeeping involves more than establishing a sum total or a bottom line. The art of bookkeeping comes from the ability to see data streams as they form, progress, and terminate. Excellent bookkeeping provides more than a snapshot, it provides a documentary of the whole financial beast.
When it comes to charity bookkeeping and accounting, the ability to see these data streams matters even more. Who is donating the most, where do those donations go, how on-target are the goals of the charity? All of these questions require through and practised systems to answer deftly.
No organisation can be in the dark about their funds for long without running aground. Learn more about the ways that a bookkeeping service can help an organization in the following.
Bookkeeping for Charity Organisations
Keeping the books for a charity doesn’t mean phoning it in and offering assistance on nights and weekends. Charities face constant scrutiny from the public and government alike.
A charity’s books need to be pristine, accessible, and robust. They need additional attention to adhere to ever-evolving scrutiny.
Accessibility: The Power of Cloud Computing
Cloud computing isn’t just the future of computing, it’s already the present. More and more organisations need to make data accessible across multiple teams and users. They also need to check for changes and updates in real-time.
It can be staggering to realise that 78% of data loss happens because of physical failures. This is one reason that many businesses and organisations have turned to cloud computing. The decentralised nature of the data storage greatly reduces the chances of a total loss.
Donations and Grant Tracking
Financials flowing into a charity are not always the same and suffer when handled as a monolith.
Not only are donations and grant funding treated differently by oversight organisations, but they also matter to individuals. Those donating to charities often do so with the hope that their funds should be earmarked for specific uses.
When funds are misused, even accidentally, it casts a pallor on the charity. Few groups can recover from a social black eye in today’s economy.
Restricted and Unrestricted Funds
The source and intention of funds entering into a charity matter for public perception. The source also matters for where the funds are applied.
Unrestricted funds need to be kept separate and used to cover costs between projections. After all, restricted funds carry heavy penalties when used outside of specific purposes.
Keeping track of these two categories empowers an organisation to act quickly and with confidence that they’re not breaking rules.
The tools used to tabulate and record funds make a big difference in how easy it is to report quarterly or end of year books.
Industry standards for types of programs used and presentation of information exist. While not always legally binding, following a set format speeds up reviews and makes it simpler to stay transparent.
It’s possible to find software to help with charity bookkeeping and accounting. Most of the DIY software has a steep learning curve and makes it easy to commit simple errors that take copious time to repair. Getting a charity accountant saves you time and effort.
Take the more secure route and by contacting KG Accountants to find out more about charity bookkeeping resources and services.
Call us today on 0207 953 8913 or complete our enquiry form in order to book a FREE initial consultation.