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Cloud accounting tips to help your NFP
We’ve said it before… but we’ll say it again… we love cloud accounting! It provides a vast range of benefits to our clients and enables us to offer an extensive service and tailor it to suit any sized not for profit (NFP) organisation.
Utilising cloud software, such as Xero, allows us to offer you the service you need. Whether you are after accounting assistance or require support with a strategic review or high-level reporting, the cloud enables efficiency and transparency in all your processes.
If you are new to cloud accounting, we have a selection of tips that will help you get started with your new software and implement best practice from the beginning.
Bank feeds
One of the first steps you should take is to set up your bank feed. This means all your bank transactions will automatically flow into your cloud accounting system. There’s no need for manual data entry… the information simply feeds across from your bank account ready for you to match against your invoices or bills.
A system like Xero also allows you to create a range of ‘rules’ that you can link to regular transactions that you don’t necessarily receive invoices for… these could be payments such as monthly subscription fees or insurance premiums. You can set up a rule to apply automatically, to help save you reconciliation time.
Invoicing
Using your cloud accounting system to raise your invoices is a straightforward process. And in Xero you can create a branded invoice template so that your recipients immediately recognise who the invoice is from.
Once you raise the invoice in your system, it easily matches with the payment when it arrives through your bank feed. Plus, you can quickly determine any outstanding invoices and utilise the system to automatically follow up late payers. Nobody likes chasing unpaid accounts, so why not let the software do the legwork for you?
Manage bill processing
Managing supplier bills tends to be a tedious process, but with a cloud accounting system you should find it much easier. Plus, expense management software like Dext, Expensify, EzzyBills, or Xero’s in-built HubDoc make time-consuming tasks simple to complete.
For example, you can take a photo of a receipt with your phone and instantly link it to the relevant account transaction. Or you can forward an email with a PDF invoice and the integrated software can automatically create a purchase order or find an existing PO that matches. The level of sophistication within cloud software, that now makes many processes essentially hands-free, is impressive!
Facilitate payments
If your NFP has an online sales platform and you utilise payment services such as eWAY, Shopify, Vend and Stripe, these can easily integrate with your cloud accounting system to help you receive your payments promptly.
You can also set up your system to make sure it marks invoices as paid once the payment is complete. Again, this will save you time when you need to perform your reconciliation.
Regular reconciliation
We can’t stress enough how important it is to regularly reconcile your accounts. This is a standard bookkeeping practice and will help you keep track of your cash flow. If you implement all of the other tips above, you will be surprised at how quickly you can complete the reconciliation process.
Ideally, you want to make sure that your accounts are up to date every month.
We are here to help
We have no doubt that if you move to cloud accounting and take the time to set up your system, you will love it as much as we do! With all your records in the cloud you will be able to find important information with ease and avoid sorting through piles of paper.
Here at Accounting For Good, we have decades of experience in not for profit accounting. We have helped hundreds of organisations transition to cloud accounting and we can support you with the process. We can make sure it is smooth and trouble-free, alleviating any stress related to the conversion. To find out more about Xero and how we can help you migrate to the cloud, contact our team today.
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