How to drive non-profit financial efficiency with paperless automation – Third Sector

When we talk about digital transformation in the non-profit sector, we focus on the use of information, data and automated processes to allow that transformation to happen.

Data and metrics in the non-profit sector are key indicators of mission success. Any improvements or gains that can be created by leveraging technology for greater efficiency and visibility results in more money for the non-profit to deliver on its mission.

The Non-Profit Finance Leaders Survey, an annual survey conducted by Sage Intacct, found that 64 per cent of respondents cited manual, time-consuming reporting as their greatest pain point, with 45 per cent spending more than 25 hours a month using Excel spreadsheets.

Lack of real-time visibility into key outcome and performance metrics was the second greatest pain point reported by respondents (57 per cent), resulting in delayed decision-making and missed opportunities.

The third greatest pain point, cited by 57 per cent of respondents, was inefficiencies due to multiple, disconnected systems, resulting in delayed reporting and painful growth.

Being able to easily integrate and connect multiple systems is a powerful tool in moving toward a paperless environment and, ultimately, mission success.

If finance leaders want to become data-driven and paperless, there are three technology features they need.

Manual tasks such as consolidations, currency conversions, billing, allocations and vendor payment approval are very time-consuming. When non-profits automate these processes, they achieve increased efficiency and visibility across the organisation by integrating systems. They also gain visibility for proactive decision-making through quick, real-time reporting as well as achieving a better work/life balance.

One non-profit that automated its financial operations reported an 80 per cent increase in efficiency and saved over 400,000 a year in operating costs. This saving resulted in greater mission success and greater impact in the community.

Using technology and the right architecture can help speed up reporting. This means marrying up statistical information with financial data and having those metrics be able to tell us, at a glance, where the organisation is and how its doing.

Dimensions is a tool by Sage Intacct that allows users to visualise and find all the information they need, providing instant answers. It helps them to define, track and slice and dice their data using all the different attributes that are important to their organisation.

Being able to integrate systems, with a real-time view, gives you greater leverage. Having data all in one place gives non-profits a fuller picture of their performance, which leads to better long-term planning.

According to the Time to go Paperless report by the Journal of Accountancy, its estimated that every dollar invested in going paperless will generate a return of as much as $30.

The obvious benefits of going paperless are that it improves operational efficiency, improves document organisation and allows for multi-user access and even remote access for auditors.

Improving internal efficiencies, closing the month faster and freeing up resources for more strategic opportunities is a huge win. However, the bigger benefit is real-time information for programme success and money saved that can move to the programme side of the organisation, allowing non-profits to be better stewards of their finances and delivering greater mission impact.

Originally posted here:

How to drive non-profit financial efficiency with paperless automation - Third Sector