When the numbers in a grant report don’t agree with the books, the problem is usually bigger than one reporting mistake. It may be a sign that the financial system and the grant management process aren’t working from the same information. There’s a moment that can make a routine grant report surprisingly uncomfortable. Someone is […]

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 […]

I’m Afraid a Cleanup, Audit, or 990 Review Will Uncover Mistakes We Should Have Caught Months Ago The fear of finding a mistake can sometimes become a bigger problem than the mistake itself. There’s a particular kind of hesitation that comes up when a nonprofit knows its books need a closer look. The audit is […]