11 min
Episode 82: How to handle nonprofit accounting cleanup A Modern Nonprofit Podcast
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- Non-Profit
On today’s episode of A Modern Nonprofit Podcast, our special guest is the one and only Tosha Anderson, our very own founder and CEO.
The conversation today has a very simple focus, 5 red flags that your accounting needs improvement, even when it may not be recognized.
Whether the business is accrual or cash basis, it does not matter. Reconciliation is necessary and the bare minimum for successful completion of the accounting role.
The accountant must post all transactions that filter through the bank account. Once these have been transferred into the accounting system, QuickBooks for example, reconciliation is the next step.
This is how businesses prove that all transactions that enter the bank account are included in the accounting system.
Consider it like an internal audit and a necessity. We’re talking ground floor here when it comes to expectations for the accountant. Executive Directors should be checking off on this task, signing off, however they want to approach it, to assure that it is being completed.
If this is not being done, then it’s time to recognize the huge red flag in business’ processes.
Not only should this be completed in general, but completed consistently. Infrequent completions of this should also indicate trouble in paradise.
Red Flag #1: Bank Account Reconciliation Red Flag #2: Lack of Financial Reports Red Flag #3: Timely Revenue Streams Red Flag #4: Auditor FeedbackRed Flag #5: Book Closing Turnarounds
Please be sure to engage with the interview. Whether you enjoy listening to it, reading about it, or watching us on YouTube, make sure you review, share, and engage with A Modern Nonprofit Podcast. You can find Tosha and the Charity CFO team on Youtube or our website, thecharitycfo.com!
On today’s episode of A Modern Nonprofit Podcast, our special guest is the one and only Tosha Anderson, our very own founder and CEO.
The conversation today has a very simple focus, 5 red flags that your accounting needs improvement, even when it may not be recognized.
Whether the business is accrual or cash basis, it does not matter. Reconciliation is necessary and the bare minimum for successful completion of the accounting role.
The accountant must post all transactions that filter through the bank account. Once these have been transferred into the accounting system, QuickBooks for example, reconciliation is the next step.
This is how businesses prove that all transactions that enter the bank account are included in the accounting system.
Consider it like an internal audit and a necessity. We’re talking ground floor here when it comes to expectations for the accountant. Executive Directors should be checking off on this task, signing off, however they want to approach it, to assure that it is being completed.
If this is not being done, then it’s time to recognize the huge red flag in business’ processes.
Not only should this be completed in general, but completed consistently. Infrequent completions of this should also indicate trouble in paradise.
Red Flag #1: Bank Account Reconciliation Red Flag #2: Lack of Financial Reports Red Flag #3: Timely Revenue Streams Red Flag #4: Auditor FeedbackRed Flag #5: Book Closing Turnarounds
Please be sure to engage with the interview. Whether you enjoy listening to it, reading about it, or watching us on YouTube, make sure you review, share, and engage with A Modern Nonprofit Podcast. You can find Tosha and the Charity CFO team on Youtube or our website, thecharitycfo.com!
11 min