Non-profits are famous for their dedication to making the world better using passionate and committed staff. However, they can only do so much with limited resources and recurring challenges. One practical approach to streamlining operations in a non-profit is automating critical functions like financial reporting.
This article explains the perks of financial reporting automation and how Xledger helps achieve your objectives.
Financial Reporting Automation Explained
Automating financial reporting involves using software to handle the essential processes of curating and generating financial reports. The software executes account reconciliation, covers data entry, and prepares accurate and error-free financial reports and statements.
The ideal financial reporting software should guarantee to streamline all finance processes in your organization. It should eliminate your team’s need to browse multiple databases to find new data and update financial statements. Tools like Xledger are effective in pulling data from your organization’s various systems and using the information to generate accurate and timely reports.
For non-profits, automating financial reporting helps reduce human interaction with financial data while streamlining the finance function. It covers all the donor management processes like communications and fundraising, making it easy for your team to get more work done.
Why Non-profits Need to Automate Financial Reporting
Most non-profits operate with limited resources, funds, and time to execute specific community-uplifting responsibilities. It means that any effort to improve efficiency in operations increases its overall impact. Automation provides the best approach to increasing efficiency, especially in non-profit financial reporting.
The following are points that should encourage you to invest in comprehensive automation software like Xledger to streamline your finance functions:
Eliminate Repetitive Tasks
One primary advantage of process automation is it eliminates the need to utilize manual labor for repetitive tasks. The software handles all routine tasks like maintaining donor contact information and sending event invitations to prospects. The employees can use the time saved to focus on other tasks while the software improves efficiency and effectiveness.
Quick Access to Financial Data
Many non-profits cannot afford an experienced and qualified bookkeeping professional. They often use inaccurate and outdated financial data, resulting in unreliable financial reports. Your non-profit might need to automate its financial reporting to guarantee you accurate and valuable insights when making decisions.
Reduced Fraud Risk Exposure
Involving manual bookkeeping and accounting processes exposes your non-profit to occurrences of internal fraud. Statistics show nonprofits are most likely to fall victim to financial fraud because they lack the internal controls to identify and prevent discrepancies.
Updated Overviews of Supporters, Donors, and Volunteers
Manually tracking and maintaining lists of non-profit shareholders is a full-time and complex responsibility. An automated system will handle the function effortlessly as it can access the non-profit’s database. The lack of an effective donor management system will lead to even more complications in the future.
Are There Benefits to Automating Financial Reporting for Non-profits?
According to 2019 research, 48% of non-profits boosted their spending on tech to improve efficiency. There are several benefits non-profits can enjoy from automating their financial reporting, and they include the following:
Saving Time
You can save time and resources for your non-profit by automating financial reporting using tools. Automating tasks like data entry and report curation means you can streamline financial reporting processes while reducing the time spent on manual tasks.
Non-profit financial reporting automation also facilitates quick approvals. The software helps keep track of all the documents sent and hastens the approval time. The lack of automation means the entire process stops if one forgets to review a copy.
Accuracy and Consistency
You must consider automating specific non-profit functions if you want accurate and consistent financial reports. Automated financial reporting systems help ensure consistency and accuracy in all reports curated using information straight from the database. Choosing to automate improves the non-profit’s confidence in its financial statements while eliminating elements of human error in data entry and calculations.
Improved Transparency
Transparency is crucial for non-profits as it directly impacts donors’ willingness to contribute to your cause. The more transparent your team and processes are, the more likely you’ll attract valuable donors and volunteers.
Automating your financial reporting system helps improve transparency by ensuring all reports and statements generated are accurate and reliable. The automated procedure provides timely and accurate financial information, increasing their confidence and trust in operations.
Data Analysis
The analysis provided by an automated system is more accurate than one where most processes are manual. Automating your financial reporting system provides the non-profit with valuable insights from the data analysis, allowing you to make more informed decisions.
The system can identify trends and guide you on resource allocation and financial planning by analyzing your financial data comprehensively. In the long run, it effectively reduces manual labor in analysis and helps avoid losses, leading to financial losses or legal issues.
Why Automate Non-profit Financial Reporting with Xledger and GoldFinch ERP
Xledger is among the few cloud-based accounting software capable of transforming your non-profit’s finances—and the software gets supercharged when used with GoldFinch ERP. This software package understands finance leaders’ complex challenges and provides practical solutions to help improve efficiency and productivity.
Xledger’s fund accounting software replaces the massive Excel spreadsheets that manage data with multi-purpose flex screens. On this screen, you can track cash and generate accurate reports regardless of the number of funds or the restriction’s complexity.
GoldFinch manages donor contributions while helping you to utilize and allocate your staffing resources most efficiently. It also ties in the rest of your organization, compiling valuable information into a single centralized database.
Together, you can access and understand real-time funds and projects by generating updated reports. It also reduces the fund reporting processes and budgeting from weeks to hours while managing other tasks effectively.
Here is what to expect when pairing GoldFinch ERP’s and Xledger’s non-profit financial reporting software:
- Generates accurate reports on funds and projects within hours
- Allows cash tracking in restricted, unrestricted, and endowment funds
- Eliminates manual processes from your finance function
- Reduces human-related errors
- Boosts non-profits’ confidence in their financial numbers
- Facilitates the switch from Excel worksheets
- Includes financial records in the decision-making process
Conclusion
Xledger is a popular accounting software firms use to transform their internal financial processes. GoldFinch is the darling of Salesforce-native ERP solutions, especially for the non-profit sector. They’re also perfect for non-profits as they help automate crucial functions like financial reporting, increasing overall efficiency significantly. Automating financial reporting helps non-profits improve their financial management while saving time and resources.
It’s time to streamline your non-profit organization—contact us today to get started!
