Similar to annual budgeting, proactive cash management is extremely important for your nonprofit’s financial security. Cash management relies on forecasting to be effective. The Numbers 4 Nonprofits accountants work directly with our clients to ensure a thorough understanding of each organization’s forecasted cash needs.
Cash Management and Timing
Understanding expected income and expenses is essential for reliable cash management processes. Numbers 4 Nonprofits can assist with creating a timeline for both income and expenses based on past financial statements. We will also work with you to identify other transactions that will affect cash flow based on seasonal ebbs and flows.
Optimizing Cash Flow
Asking specific questions about an organization’s financial status is one way to develop a cash management plan:
- What are your current sources of revenue and expense?
- How would you like to enhance your cash flow?
- What improvements must be made that would boost your potential for securing a bank loan, should one be necessary?
Financial health relies on optimized cash flow management and a well-planned approach that will see your organization through the good times and the bad. The staff at Numbers 4 Nonprofits helps our clients develop strategies for pursuing different revenue streams. The IRS lists these three sources as the main revenue generators for nonprofits across the country: grants (both public and private), contributions (both private and corporate), and program service fees.
Contact Numbers 4 Nonprofits today to discuss how we can help you manage your cash flow more efficiently so you can focus on your mission.