Category: Financial Accountability

Financial Visibility Equals Financial Viability for Home Health Organizations

11/2/2020

In our continuing efforts to keep the Senior Living / Assisted Living verticals informed in the cloud financials space, we thought it would be relevant to post this new research that may affect your organization.

New research indicates most home health and hospice leaders are exposed to serious financial risks due to the lack of access to real-time financial data and business analytics. This comes at a time when daily management of key performance indicators has never been more important as providers attempt to navigate new payment models and predict the financial impact of COVID-19.

Over the past 12 months, financial complexities have grown exponentially, and business leaders are being challenged like never before to manage cash flow. Unfortunately, real-time visibility into financial and operational performance continues to evade most providers.

Now is the time organizations must evaluate their financial management systems to ensure they get the visibility they need - when they need it - to navigate these challenging times ahead.

A recent study conducted by Porter Research and sponsored by Sage Intacct reveals that many of the most popular financial accounting systems are severely lacking in their ability to provide home health and hospice business leaders the insight they need. The majority of the providers are using outdated methods and limited, on-premise financial accounting systems that are putting their long-term viability at risk.

Download the complete white paper, 'Financial Visibility = Financial Viability in a Post-Pandemic Society' here.

Ready for more information? Please schedule an appointment and we'd love to collaborate on a project to help with your cloud financials.

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Transparent Nonprofits

7/30/2018

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8 Ways Nonprofits Can Be Financially Transparent

Businessman Simon Mainwaring once said, “The keys to brand success are self-definition, transparency, authenticity and accountability.” Transparency and accountability, in particular, are essential to a nonprofit achieving mission success.

In fact, these two principles are foundational to the rating system used by Charity Navigator, the nation's largest and most-utilized evaluator of charities. Charity Navigator offers these two definitions:

Accountability is an obligation or willingness by a charity to explain its actions to its stakeholders.

Transparency is an obligation or willingness by a charity to publish and make available critical data about the organization.

How to show accountability and transparency
The willingness to be accountable and transparent about your nonprofit — especially finances — creates an environment of trust that encourages donations. Financial transparency and accountability are also essential for legal compliance.

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The National Council of Nonprofits lists several ways your nonprofit can - and in some cases, must - demonstrate financial transparency:

If requested, provide copies of the three most recently filed annual information returns (IRS Form 990) and your organization’s application for tax-exemption. These can be posted on your website.
Be honest in your solicitation materials and in communications with donors about how their gifts will be or have been used.
Adopt a conflict of interest policy with a disclosure statement that your Board and staff must create an executive compensation policy that ensures the Board is aware of, and approves, the salary and benefits of your Executive Director or CEO.
Have the Board of Directors review important financial reports as well as review the IRS Form 990 before filing.
Adhere to sound financial management policies, including internal controls. This ensures accountability.
Adopt an expense reimbursement policy that requires prior approval and limits expenditures to a reasonable limit.
Publish information about your nonprofit’s tax-exempt status, who’s on your Board of Directors, and appropriate financial information on the website.
Simplify financial transparency with cloud software.

Nonprofits face significant challenges as a result of thin staffing, tight budgets, primitive financial management tools (e.g., spreadsheets), and far-flung management teams. Financial transparency may seem almost impossible.

Fortunately, there’s cloud-based fund accounting software from Sage Intacct. Now you can create greater levels of transparency across every dimension of your organization and get real-time visibility into your organization’s financial health. Key stakeholders like the Board of Directors have instant, actionable insight to make smart decisions about your nonprofit’s future.

Let Leaf Software Solutions guide you to greater financial transparency and accountability. By focusing on your business needs first, so we can design a solution that scales as your nonprofit grows. Call us at 317-814-8000, or email us to get started today.

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