7 Ways Your 2018 Financials Can Help You In 2019
By: Richard Sammons, CMA, RightPath Business Advisors
The year 2018 is over and 2019 is here. For most nonprofit organizations, it is a time of looking forward. A time to implement the plans and strategies they developed in December 2018 (you did create a plan, right? :D). What marketing campaigns will you implement? What events do you need to prepare for? What are your development goals that you need to hit to make everything work?
Here are 7 simple, yet essential, tasks your organization needs to complete to close out 2018 and to start 2019 on the right foot.
CLOSE OUT 2018 RIGHT
- Have you completed your 2018 financial statements?
Someone is going to ask for them like the IRS for taxes, your Board of Directors or foundations from which your organization received grant funds. Make sure your statements accurately reflect all income, expenses & activities.
- Make sure your bank reconciliations are completed with nothing undecided.
- Clean up your expenses. Make sure all expenses are in the correct accounts.
- If your organization reports on the accrual basis, make sure all expenses committed to in 2018 are reported, & all receivables that can be billed are recorded.
USE 2018 TO SET UP YOUR 2019 FINANCIAL PLAN
- Determine your targeted revenue for the new year – What new grants, donations/pledges, events, & fundraising will you require?
- Determine your expenses based on last year’s numbers with expected increases
• Long term commitments
• Staff salaries & benefits
• Expenses that can be eliminated – question & justify them
- What new expenses will occur due to new plans, programs, & events? Make sure to evaluate these and get professional estimates for each.
Follow these 7 simple steps to get 2019 off to a great start! Many organizations struggle to get them all done and pay the price in the long run with excess cost of money and time. When needed, make sure to reach out for help from your staff, board members, or external professionals.
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