Few things create more uncertainty for a nonprofit finance team than seeing one number in a grant report and a different number in the accounting system. Both numbers may look reasonable, and both may have been prepared carefully, but once they do not agree, the conversation quickly changes from reviewing the grant to figuring out […]

A healthy bank balance can create a sense of financial security. If your nonprofit has $500,000 sitting in the bank, it may seem reasonable to assume the organization has plenty of room to hire, expand a program, approve a major expense, or respond to an unexpected need. But that bank balance does not necessarily tell […]

A financial report can be completely accurate and still be too old to help you make a good decision today. That may sound like a contradiction, but it happens more often than nonprofit leaders realize. If your leadership team is reviewing financial statements from two or three months ago, those reports may accurately reflect what […]

A nonprofit can show strong revenue on its financial statements and still find itself watching the bank balance closely. One reason is often hiding in plain sight: accounts receivable. Suppose your organization has $250,000 in pledges, grants, reimbursements, and other receivables on the books. That sounds encouraging—and it may be. But it doesn’t necessarily mean […]