You should regularly review your not-for-profit’s accounting function for inefficiencies. You can conduct annual reviews or perform an assessment whenever a significant event takes place. Here are some tips for a successful review from Virtual Jeannie Bookkeeping, a Santa Rosa-based accounting firm.
Check if Cutoff Policies are Followed
You need to create policies for the monthly cutoff of recording expenses and invoicing. For example, require your teams to submit invoices to the accounting department by the final business day of each month. If you do not have any policies in place, adjustments will undoubtedly pile up.
Your accounting team will have to wait for other teams to submit invoices and expense reports and they may be unable to make financial statements available in a timely manner. During a review, check to make sure that your cut-off policies are adhered to.
Process Items in Batches
Entering just one invoice or cutting one check at a time is a waste of time. To improve your efficiency, perform the exercise when you have multiple similar items to process.
Depending on the number of invoices you handle, you may want to process payments only once or twice a month. Making your entire team aware of the schedule will help ensure fewer emergency checks and deposits surface.
Review Software Use
Many businesses underutilize their accounting software. Check if your accounting team is making the full use of your software. If required, hire an expert to train your team on the software to show them extra tips, tricks, and shortcuts they may not be using.
Reconcile Accounts Regularly
Reconcile your accounts immediately at the end of each month. The sooner you catch errors, the easier they will be to rectify. Remember to reconcile your accounts receivable and payable. If this sounds like a lot of work, hire a Santa Rosa accounting firm to perform the task.
Identify Automation Opportunities
Identify labor-intensive processes that can be automated. Determine if certain processes can be eliminated. For example, if two employees are processing invoices, determine if one employee can handle the workload if it can be automated.
Check if the Review Committee is Performing its Role Effectively
Check if your CFO, finance committee, treasurer, or anyone else responsible for reviewing accounting entries, bank statements, and financial statements for errors are performing these tasks regularly and accurately.
Virtual Jeannie Bookkeeping Services consists of a team of expert bookkeepers and accounting specialists. No matter how complex your bookkeeping process, we can help streamline it. To enquire about our services, call (707) 664-1425.