5 Key Reasons Why Non-Profits Must Choose the Right Financial Management System

How do you make sure you’re strong enough to survive the next financial crisis when it comes? How do you do three things simultaneously: Make your organization stronger financially, meet the often increased needs in the community, and coping with often seismic changes in funding sources? Can you do all three things at once?

You can, and as a steward of your mission you must. But to accomplish those tasks, and do them well, you have to have good numbers. Whether it’s cash flow projections for the next six months, expenses by category over the past 12 months or ratios from your balance sheet, good financial management and reporting provides you the information to make better stewardship decisions in a crisis. In this article, we’ll talk through why this is so important, give you some examples of what kind of reporting you need, and some suggestions on ways to ramp up your financial management and reporting to strengthen your ability to accomplish your mission in the current OK times, hopeful good times to come as well as the inevitable next recession.