Accountability and performance measurement have become an important and urgent subject for nonprofit organizations as they encounter increasing competition from other agencies, all competing for scarce funding. The reliance on external funding puts pressure on nonprofits to examine all expenditures and ensure funds are used to support their missions. Performance measurements can act as a check to verify the nonprofit is successful at reinforcing the mission and goals for board members, staff and volunteers. A performance measurement is a numeric outcome of an analysis that indicates how well an organization is achieving its objectives. These measurements can be used to examine the performance of all aspects of a business, including the accounting, engineering, finance, marketing, materials management, production, research, and sales departments. In this article, we take a deeper look into setting up and tracking accounting performance.
A common headache and time drain for growing nonprofit entities is how they manage their accounting and financial functions. Trying to find and maintain reliable, timely, and trusted employees to handle bookkeeping and some higher-level accounting services can be difficult if not impossible in a competitive workforce.
As agencies and the need for supporting systems grow, the workload and responsibility often falls to one person, which can lead to a financial control crisis. A considerable amount of time needs to be spent managing people, processes, and procedures, in order to promote a quality financial structure. Luckily with today’s technological advances, significant benefits and efficiencies can be gained by outsourcing the financial function in part or in whole.
But how do you know when it’s time to consider making an investment in financial services?