8 Ways Fiscal Management Technologies Can Work to Your Nonprofit’s Advantage
Every nonprofit organization must rely on technology to achieve its mission. The reason is clear: It helps the organization gain a better understanding of the overall financial picture so timely decisions can be made about the strategic direction of the organization. At the end of the day, sound decisions are based on good data and data is a critical component of good strategic fiscal management.
Frankly, it’s hard to overstate the role of technology, considering that it helps manage and optimize an organization’s ongoing fiscal management functions. Technology is used to automate manual processes, which in turn improves efficiencies and accuracy. It saves time at all levels of the organization, and when done right, can greatly improve employee satisfaction.
As you explore the role of utilizing technology and what it can do for your organization, keep these advantages in mind:
- Provides 24/7 access to the financial data: Whether traveling or simply away from the office, leaders have real-time access to data from anywhere in the world. The financial state of the organization is visible—whenever needed.
- Streamlines financial management tasks: Manual tasks that once took hours to complete and created mounds of paper can now be accomplished more efficiently and effectively, thanks to faster and simpler methods. Employees have more time to focus on other tasks.
- Improves workflow efficiency and timeliness: By eliminating a process that is paper-intensive, efficiency improves throughout the organization. The error rate decreases dramatically and information can be accessed more readily. The end result is tremendous time savings at every level of the organization.
- Reduces staffing expenses and turnover: Many nonprofits rely on a small staff and, in some cases, volunteers. Usually, there’s more work than can be reasonably accomplished. Technology changes that by streamlining the cumbersome processes that distract from mission-critical work.
- Optimizes fiscal management functions: When leaders at all levels of the organization have access to data, they are better equipped to make sound, future oriented decisions. Sound financial monitoring and financial planning take place at both the managerial and strategic levels. Program managers and senior leaders alike benefit from financial data that is readily accessible and communication is increased at all levels.
- Generates higher quality financial information and dashboard reporting: Virtual data presentation portals make it possible to produce a range of dashboards that facilitate strategic planning and decision-making. These reports are accessible at any time, from anywhere.
- Improves compliance: Automating the financial functions of the organization not only makes it easier to stay compliant with government, grantmaker and other stakeholder reporting requirements, but it can also help facilitate an audit. Materials are easily accessible and this makes the entire auditing process more efficient and cost-effective.
- Creates more time to focus on the programmatic mission: By adopting good technology tools, the organization has more time to spend on mission-critical tasks and has good data to make mission-critical decisions. Organizations can focus on tasks that are more meaningful and productive to the overall success of the organization.