News & Insights
Your nonprofit’s board needs to know these financial warning signsIs your board staring at financial red flags without knowing it? Although some warning signs — such as those experienced when the pandemic first hit — are obvious, others are easy to overlook. Here are several signs of trouble that board members need to be aware of and prepared to act on. 
Should your business address retirement plan leakage?Business owners who offer employees a qualified retirement plan should familiarize themselves with the term “leakage” and how to help prevent it. 
Keeping your nonprofit’s remote workers connectedMany employees have embraced the opportunity to work from home during the pandemic — but not all of them. Some workers have experienced feelings of disconnection and isolation. So if your not-for-profit plans to make remote working a longer-term proposition, you should look for ways to make everyone feel connected to the job and their colleagues. 
Take your financial statements to the next levelFinancial statements should be more than an exercise in compliance. Fit companies put their financials to work for them. 
Audit disclosures: Why the fine print is importantAudited financial statements contain footnotes that disclose a wealth of useful information. Too often, however, no one bothers to read them. 
New tax reporting requirements for payment apps could affect youIf you receive payments through services such as Venmo or PayPal, be aware that there are new tax reporting requirements beginning this year. 
2022 tax calendarTo help you make sure you don’t miss any important 2022 deadlines, we’ve provided this summary of when various tax-related forms, payments and other actions are due. Please review the calendar and let us know if you have any questions about the deadlines or would like assistance in meeting them. 
The ABCs of activity-based costingActivity-based costing (ABC) is commonly used by manufacturers and contractors to learn which products and customers are profitable, identify and eliminate waste, and more accurately price products or bid jobs going forward. With ABC, you assign cost codes to each activity completed based on the resources consumed. Cost codes define the activity; the equipment, materials and labor used to complete it; and how long it takes to finish the task. This information can provide insight into real-time job performance, excessive spending and growth opportunities. Software solutions can help shorten the learning curve. Contact us to learn more about ABC. 
Let your financial statements guide you to optimal business decisionsBusiness owners: No matter how busy things get, don’t overlook the informative value of your financial statements. Assuming you follow U.S. GAAP or similar reporting standards, yours will have three major components: 1) The income statement, which shows revenue and expenses over the accounting period. 2) The balance sheet, which tallies assets, liabilities and net worth to take a snapshot of your financial position. 3) The statement of cash flows, which shows cash inflows and outflows from operating, financing and investing activities. Financial statements contain a wealth of data that can allow you to identify trends, both good and bad, affecting the business. Contact us for help. 
Big, small or in-between: Your nonprofit’s board size is up to youWhen a nonprofit is new, it may struggle to find an adequate number of board members. But as it grows, its board is also likely to grow — sometimes, to an unwieldy size. The question is: How many directors does your organization need to effectively pursue its mission? 
Handle your nonprofit’s restricted gifts with careMost not-for-profits encourage donors to make unrestricted contributions that will give the organization flexibility to use the money where it’s needed most. But there will always be some donors who place restrictions on their gifts — and these require a higher level of responsibility. 
3 steps to a more financially resilient futureIt’s a new year with new opportunities for your not-for-profit to boost its financial resilience. Although COVID-19 continues to make forecasting difficult, your staff and your board’s finance committee can take steps to negotiate obstacles. Here are three. |
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