How to Avoid Overstating or Understating Revenue and Expenses
Your 501c3 organization has a strong vision and a list of actionable projects that will make a difference in your community. You’re already funding your programs through various revenue sources, including fundraising events, grants, and donations.
But how do you report it all accurately? The “idea person” who drives a nonprofit’s mission doesn’t always have the same skills as the “money person” who handles the finances.
Just because your organization is a nonprofit doesn’t mean that financial records are not important, and making sure that they are 100% accurate is crucial to keeping your nonprofit running smoothly.
Good Steward Financial is a virtual bookkeeping business that specializes in 501c3 nonprofit organizations. We offer services, from cash flow management to payroll processing and fractional CFO services, that are designed to meet your organization’s unique needs.
We know the value of properly preparing your financial statements, and we are here to help.
What Happens If Your Financial Statements are Incorrect?
Nonprofits juggle a wide variety of revenue sources with equally varied expenses. This array of cash streams makes cash flow management difficult, especially for new organizations.
If you overstate or understate your revenue or expenses, your organization cannot have an accurate awareness of its full financial standing.
Internally, this situation could lead you to allocate revenue you do not have to a new project or incorrectly estimate your expenses on a grant application. Without accurate cash flow management, you set yourself up for an unnecessary cash flow crisis.
Externally, incorrect financial statements make it harder for potential donors and grant committees to have a proper understanding of your organization. If the numbers don’t add up, they may avoid committing their finances to your mission.
In extreme cases, overstating or understanding your revenue or expenses can lead to charges of fraud.
You can easily avoid these headaches by engaging a virtual bookkeeping business like Good Steward Financial to help manage your nonprofit.
Consider Cash Flow Management Services
Good Steward Financials’ cash flow management services optimize your nonprofit with a multi-faceted approach. We are proactive, ensuring that your organization always has accurate, up-to-date financial information to inform its projects.
We handle the numbers, freeing you up to focus on your vision. Good Steward Financial is an expert virtual bookkeeping business, and we can improve your nonprofit’s cash flow management by:
- Providing a holistic financial overview of your organization
- Creating day-to-day cash flow management strategies with weekly and monthly projections
- Addressing ongoing and future financial needs with 1–5-year cash flow projections
- Explaining your past finances with historical cash flow statements
- Uncovering hidden expenses
- Implementing efficient cash collection and payment policies
With us, cash flow management doesn’t just keep your records accurate; it streamlines your nonprofit’s finances and revitalizes the entire organization.
Make Sure You Have a CFO with Fractional CFO Services
Even nonprofits need a CFO to oversee their finances. Having a dedicated CFO is the easiest way to avoid overstating or understating your revenue and expenses, but many smaller organizations may find it difficult to find one.
Good Steward Financial’s fractional CFO services allow your nonprofit to continue operations when you are in between CFOs or unable to allocate resources to hiring one.
The benefits of fractional CFO services from a virtual bookkeeping business like Good Steward Financial include:
- An objective perspective of your financial situation
- Expert advice
- Financial management for independent projects
- Prevention and/or management of a financial crisis
- Support as the organization expands
Expert Service with Strong Values
When you hire Good Steward Financial to help your nonprofit with cash flow management, fractional CFO services, or any of our other services, you can trust in our industry expertise and integrity.
As a Christian company, Good Steward Financial is a virtual bookkeeping business that runs on biblical principles of honesty, hard work, and superior service.
Jesus said, “Do unto others as you would have them do unto you” (Luke 6:31). This statement is at the heart of Good Steward Financial’s mission. By supporting your nonprofit’s work, we are giving back to ourselves.
Contact us to find out how Good Steward Financial can optimize your organization’s financial statements and advance your vision.