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Finding an auditor: the RFP process

by with No Comment AuditFeatured BlogNonprofit

We’ve got more audit talk for you today! The 12/31 year-enders are prepping and the 6/30 year-enders are looking for auditors, so we’re trying to cover all our bases here.

I spoke with not one but two organizations last week that need a new auditor and asked me for suggestions (good first step, by the way!). I’ve worked with a great audit firm for many years and immediately thought of them but unfortunately, they’re in another state. I texted the audit partner (yes, I basically have him on speed dial!) and he said he’d love to participate in an RFP process. That got me thinking about how important those referrals are for great firms – you’ll likely have a much better experience than simply Googling “nonprofit auditor [your location]”.

Not only do we need an audit firm that specializes in nonprofits, but we also want someone we connect well with. You will likely be communicating with that auditor not only during the annual audit process but also throughout the year as questions come up. The auditor will also meet with your board’s audit/finance committee or perhaps even present at a board meeting.I recommend an RFP (Request for Proposals) process to appropriately do your due diligence and get an auditor that will work best for your organization. I promise it’s not complicated!

  1. Form a committee of stakeholders. Perhaps the ED, your lead finance person and a board member would be a good place to start.
  2. Determine what you’re looking for in an audit firm and write it down. This will be the basis of your RFP document. Here are some things to think about: What size firm do you want? What is their expertise? How many staff will work on your engagement? What is their average turnaround time? Here is a sample.
  3. Identify who you want to send the RFP to. This is where your network comes in! I suggest reaching out to colleagues, peers and board members and finding out which audit firms they recommend. Come up with a list of maybe 10 firms and their contact information.
  4. Send the RFP out. Send both a paper and email copy to the contacts you identified with specific instructions on how to submit the proposal.
  5. Review the proposals, select your two or three finalists and invite them into the office for a meeting to discuss their proposal. Don’t forget to discuss fees!
  6. Make your final decision and hire your new audit firm. Let the fun begin!

With the proper due diligence, this new audit firm will serve as a solid sounding board for your organization. If you have a new project come up throughout the year and you aren’t sure how to make the accounting entry, you can call them for advice rather than waiting for them to find potential mistakes during the audit.

On the contrary, if the audit firm didn’t live up to your expectations, remember that the relationship isn’t forever – simply go through the RFP process again to find a better fit.

How did you find your audit firm? How long have you been with them? Need help managing the RFP process or don’t know where to begin?

I can help!

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Do we need an audit?

by with No Comment AuditFeatured BlogNonprofit

I hope everyone had a restful weekend! Are you December-31st-close people finishing up year-end? More importantly, is everyone sticking to their resolutions? I’m proud to say that I’ve gone to yoga once a week! It’s amazing how much better I stick to something when I simply put it in my calendar and treat it as I would a doctor’s appointment. Non-negotiable, not cancellable, not available for anything else during this time. Let’s keep it up!

We talked last week about how to prep for an audit and I’m here this morning to talk about those organizations who are in the initial phases of growth (less than $1M) and haven’t yet had an audit. They’re not sure if they need an audit and once they decide they do, they have no idea how to find the right auditor.

Let’s tackle this head on!

First, what is an audit? Is it when the big, scary IRS comes in and rifles through all your files and you’re in trouble? No way! This is when you choose an independent auditor to come in and assess not only your books but also your policies and internal controls, then they hand you a neatly comprised set of financials that you can then share with donors, funders and other stakeholders. Also, you pay them.

Now that we’ve got that cleared up, does my organization really need an independent auditor? There are a few factors to consider here:

What state are you incorporated/registered in? Each state has different audit requirements. Are you registered in any other states? Oftentimes, organizations will register in a number of states in order to fundraise there and those states may require audited financials. Here is a great guide of state-by-state audit requirements and links to statutes. [Please always consult your legal counsel before making any decisions – sites like this could be outdated!]

Who are your funders? Many private foundations and government agencies will require audited financials along with grant or contract applications. If they don’t require an up-front audit, they may require one when you spend above a certain threshold of federal funds in a year (currently $750,000).

The IRS requires nonprofits to complete the 990 but does not require an independent audit. Part XII Financial Statements and Reporting of the 990 asks whether or not the organization has had an independent audit and, as you probably know, this form is public information.

In short, even if your organization manages to squeak by without technically needing an audit, it is certainly a best practice because:

  • You’ll gain the credibility and confidence of funders and promote financial transparency of the organization.
  • Your organization will potentially be eligible for new and different sources of funding as well as ratings by the important charity watchdog organizations (Charity Navigator, Guidestar, etc).
  • Finally, and maybe most importantly, it’s an opportunity to do a deep dive into your policies and procedures to ensure you’re using your limited resources most efficiently.

Here at 100 Degrees Consulting, we are all about BEST PRACTICES!

Come back tomorrow for the second installment of this thrilling series: Okay, let’s do it. Now how do I find an auditor?

 

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My vision for 100 Degrees

by with No Comment AnnouncementsFeatured Blog

Sometimes the best thoughts come while stuck in traffic. I recently spent time thinking about my vision for 100 Degrees and how that weaves in with the vision of my clients.

 

Just like nonprofits often tout that their ultimate goal is to go out of business (because that would inherently mean we’ve eliminated extreme poverty, for example), my goal is for my clients not to need me anymore! But Stephanie, won’t that put you out of business? Don’t you need to pay your mortgage and, you know, eat? Yes! My true hope is that my nonprofit clients will outgrow the need for a part-time CFO. We will work together to set up your systems and infrastructure for growth, strategically analyze your finances to ensure sustainability and you will be scalable. With a solid foundation that we create together, you will eventually scale up your fundraising, accomplishing your mission in a bigger way and be ready and large enough to hire a full-time CFO.

What do you think? Is this a crazy vision? Was I simply hopped up on exhaust fumes from I-75 or does this make sense?

 

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Livin’ the dream as a nonprofit CFO

by with No Comment AnnouncementsFeatured BlogPeople

When I was a child I played Office. I had an old monitor, a keyboard, a rotary desk phone and reams upon reams of paper. I could hole myself up in my room for hours, typing away, jotting notes on paper and creating complex alphabetized filing systems. I didn’t know exactly what I wanted to be when I grew up but I knew I wanted to work in an office.

Well? I’m living the dream! Whenever there’s a particularly stressful day or my Excel budget template is giving me a hard time, I jokingly say to my husband, Yup, just livin’ the dream but in many ways, I do have my dream job as a nonprofit CFO. Mission connection. I get to care deeply about my organization. I’m not slaving away, crunching numbers in a back office so Joe CEO can sell more products and enjoy his four mansions; I’m slaving away, crunching numbers so that girls can go to school in Nepal. Big difference.That little spot in the middle of a Venn diagram. I enjoy numbers (I create spreadsheets for fun – I’m serious) and I’m good at it. Financial analysis comes natural to me and I find nothing more satisfying than solving a financial puzzle. My program staff and right-brained friends are confused and cringing right now, but I truly have a purpose-driven career.

Freedom & creativity. Many nonprofits operate with a start-up mentality which can mean that not all systems are in place yet and you have the freedom and flexibility to create your own. You often escape that awful repressive mentality that we do it this way because that’s how we’ve always done it and instead are constantly seeking efficiencies to better utilize our resources. If your Strengths Finder strengths are Focus and Maximizer like me, you will love developing structure, systems and efficiencies. Commonalities with coworkers. I know we’ve all said it before: we’re not here for the money. We’re thrown together because we all love serving children or homeless or the environment, and it is incredibly energizing to be in a room full of people as excited about that as you. Sure, not every single person will be pumped about the new dashboard report you just created, but our core purpose is similar.

Constant learning opportunities. No, we might not have an endless professional development budget (or have one at all!) but if you don’t know how to do something, most likely you’ll have to learn how to do it yourself. In previous roles, I had relied upon the auditors to complete the 990 but one day I found myself leading an organization who always prepared it internally. I didn’t have the option to hand it off so I dove in and learned that form inside and out. Was it challenging? Yes, for sure. Am I glad I know how to prepare it myself? Definitely!

What’s your dream job? Do you have a purpose-driven career or are you still trying to figure out what that is?

 

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How to actually WORK from home

by with No Comment Featured BlogProductivity

I have never known anyone to turn down the chance to work from home. Snow flurries outside? Yup, I’ll work from home today. Repairman coming to fix the hot water heater? Work from home day! I think we all get so excited to work from home because we could save 2+ hours without a commute, there’s little pressure to spend time getting ready (or even shower at all!) and we have peaceful, uninterrupted time to work. This is especially helpful when you have a massive spreadsheet or another detail-oriented task that requires concentration.

And with the bounty of technology in our globally-focused lives, it’s feasible to operate completely remotely. I’ve managed teams in Connecticut, Nepal, Afghanistan, Malawi and beyond from my cozy little home office, and while I do value face time, there is not much that can’t be accomplished via email and Skype. In fact, I recently found a nonprofit whose entire staff is remote, and my financial leadership model is built on a remote CFO.

We all have limited budgets and traditional “overhead”-like items – rent, phones, internet, maintenance – can eat away at our resources very quickly, thus taking it away from those we serve. If we don’t have a pro bono office space, remote workers or a “distributed team”, looks more and more attractive as a cost-efficient model.

But working from home can quickly turn into “working” from home if you’re not careful. The kitchen will be calling your name for a mid-morning snack which will remind you that The Price is Right is on at 11am which turns into working from the couch which turns into an afternoon nap, missed conference calls, an overflowing inbox and only goes downhill from there.

But it doesn’t have to be so! Here’s how to stay focused and on task AND gain more time back into your day:

Set your schedule. Have to be at the office at 8am? That’s when you should plan to be online. That does NOT mean you roll out of bed at 7:55am, pour a cup of coffee and sit down rubbing your eyes. No, you do not have to wake up at the same time as you would if you were commuting but give yourself enough time to wake up, wash up and clear the morning frog from your throat before hopping on your first call of the day. Set an end time and stick to it too – put an event in your calendar every day at 6pm. The alarm will go off and you’ll be reminded to shut down, go for a run, spend time with the family or whatever you do to unwind.

Create a home office space. Maybe you live in a big suburban house and have a whole room for a home office. Excellent! But what if you live in a tiny shoebox apartment and barely have enough room for you and the dog? That’s okay too. Set up a space where you can work, free of distractions – even if it’s the kitchen table. Clear the clutter, set up your computer, mouse, phone and notebook and boom! Instant home office. Please do not work from your bed or the couch. You won’t feel or sound professional and motivation flies right out the window when snuggled in your down comforter.

Incorporate fresh air and/or variety. As an introvert, I could hole myself up in my office all day, every day and never miss human contact. The extroverts out there need movement and energy to keep them motivated throughout the day though. Take a lunchtime walk or spend the morning working from a coffee shop. You’ll get just the right amount of interaction without the constant distraction of people stopping by your office to chat.

Use the tech tools at your disposal. For conference calls, use the video function of Skype or Google Hangouts, rather than just a call (remember, you should be washed and dressed so video shouldn’t be a problem!). Use the chat function for quick comments or questions, just as you would pop your head in someone’s office. On the other hand, don’t overcompensate and over-communicate just to prove you’re actually working. Your boss and colleagues will know you’re engaged in your work by your high-quality deliverables.

Are you ready? Let’s get to work! (Not “work”!) How do you stay efficient and focused at home?

The Secret World of Work-From-Home-Moms

 

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Does your budget reflect your values?

by with No Comment BudgetFeatured Blog

For those organizations whose fiscal year is the calendar year, you’re probably knee deep in budget prep for 2016. If you’re not, you should be! Budget season is one of my favorite times of year. It’s a wonderful time to look back on YTD financials and analyze what’s going well, where we’re over/under-spending and shape a budget strategy for the next year. We get to do market studies, cost-benefit analyses and tons of other number-crunching activities that only us finance-lovers enjoy. Then we get to wrap it up in a pretty package for the CEO and Board. It is ALMOST like the holidays!

While we know that budget prep is often all about the details, it’s our job to step back and look at the big picture and answer this question:

Does your budget reflect your values?

Is it aligned with the strategic plan? Your strategic plan is your road map to achieve your mission over the next 1-5 years. Do you all have one? (I hope everyone out there is emphatically nodding yes!) This should be the document you reference whenever you need a gut check – Is this new project the right thing to do right now? Should we apply for this grant? Maybe we should create a new program? That’s not to say there isn’t room for flexibility – oftentimes opportunities come up that are a perfect fit for the organization and simply can’t wait until the next round of strategic planning – but it helps us avoid mission creep and distraction.

Your budget needs to reflect this plan. If we don’t have money this year to start a new program, then we should wait for funding, rather than jeopardize the health of our current programs. If we’re planning to grow our adult education initiative, have we budgeted the appropriate funds to do so? Think of the strategic plan and the budget as inseparable BFFs.

Does it include enough infrastructure support? I know what you’re all thinking: Is she talking about…overhead? GASP! Yes, I am! Overhead, or infrastructure as I prefer to call it, is vital to the success of your programs. The structure of the current 990 and the mentality of most of the nonprofit world (including donors) is: spend money on programs, not on overhead. But let’s think about what “overhead” includes: financial reporting, auditing, professional development, technology, fundraising, program evaluation, and tools. Irresponsible, frivolous expenses? Not by any stretch of the imagination! I’m often disappointed with organizations that boast 5% overhead rates and their staff haven’t seen a new computer or training class in a decade. I’m simultaneously disappointed at those who fund private jets and lavish employee retreats, but good news – there is a happy medium!

Ensure that you have proper financial oversight and that your staff have sufficient technology and professional development opportunities to do their job efficiently. A happy and healthy organization means an even greater impact on those you serve – and that’s a powerful story to tell your donors.

Now that we’ve got the big picture out of the way, let’s talk details. If you’re lucky enough to be in the trenches of budget preparation, here is a handy budget checklist to keep you on track:

5 months before FY end

  • Begin composing your strategic plan. Engage employees at all levels across the organization for input through all-staff roundtable sessions, surveys or departmental meetings. This stage is crucial preparation and engagement time for the organization – the amount of effort you put in now will directly reflect employee engagement and buy-in next year.
  • Draft your budget template and make it insightful – be sure to include last year’s budget, this year’s projections and a column for the new year’s budget.
  • Ensure budget line items correspond with your chart of accounts – make any adjustments now.

4 months before FY end

  • Finalize the strategic plan draft and distribute to department heads.
  • Distribute budget templates to department heads with clear instructions on filling out.

3 months before FY end

  • Schedule meetings with the department heads to review their budgets.
  • Dig deep and look at the big picture – What’s our cost per program? Cost per client served? Is this level of growth sustainable? Do we have a fundraising plan to support the expense budget?

2 months before FY end

  • Finalize the budget.
  • Get Board approval. The timeline can vary based on your board meeting schedule but please, please, please get board approval on your strategic plan and budget. The level of detail you provide can vary based on what your board wants to see but at a bare minimum, I suggest high-level detail by department (programs, development, finance, etc).

1 month before FY end

  • Begin preparing to close the books.
  • Set up your monthly budget and get it into the accounting system.
  • Distribute the budget to all department heads and communicate it to all employees.

January 1

    • Happy New Year! Let’s execute!

 

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Nonprofit lessons from Mount Everest Base Camp

by with No Comment Featured BlogNonprofitProductivity

Five years ago this month, my husband and I embarked on our honeymoon adventure across the globe to trek to Mount Everest Base Camp. We initially thought we’d go to Belize – I still have the Fodor’s Belize guide on my bookshelf – but once I realized I’d travel to Nepal shortly thereafter for work, it was a no-brainer. We could go to the beach anytime, but an adventure to the world’s tallest mountain? Once in a lifetime.

We flew to India less than twenty-four hours after our nuptials then caught the next flight to Kathmandu where we spent a few days exploring, before flying to the world’s most dangerous airport, Lukla. It’s not exactly how most newlyweds begin their life together (essentially camping for two weeks, sans showers) but it was the perfect leap into marriage for us.

I thought, as a tribute to this amazing trip, I would share a few tidbits from my journal as well as life lessons learned (which are also applicable to the nonprofit world!).

Day 1, Kathmandu to Lukla:

This morning we woke up, ready to brave the flight to Lukla and begin our trek. The domestic airport scene was chaotic but we managed to trail after our guide and make the flight. The plane was tiny – room for only fourteen people – but the airline actually had a flight attendant on board to pass out caramels and cotton balls, presumably to stuff in your ears if the pressure bothered you. The place was rickety and old, many seat belts didn’t work and it was HOT. The flight was relatively uneventful thankfully but landing in Lukla really is as scary as they say, especially when we noticed the thick cloud cover as we approached the airport. The runway is very short and ends in a large brick wall, so if the brakes fail, you’re toast!

Lesson learned: Trust that your leader (the pilot) will forge the right path for your organization.

Day 2, Lukla to Namche Bazaar:

We had to cross many suspension bridges along the path today and I was terrified. I’m not afraid of heights but there’s something about walking across a swinging, shaking football field-length metal structure, hanging hundreds of feet over boulders and rushing, freezing water that makes me nervous. My husband, of course, trotted across them taking pictures left and right while I tiptoed across, scared silly.

Lesson learned: We all approach problems differently but often with the same end result. Respect others’ approaches so together you can be successful.

Day 3, Namche Bazaar:

This morning we rose to the sounds of Lady Gaga at the Liquid Cocktail Bar downstairs around 5:30am. Breakfast was scrambled (powdered) eggs, fried potatoes and toast which my husband loved and talked about for days. After breakfast we hiked outside of town to a mountain village about 350 meters above Namche to check out the world’s highest airport. The word “airport” is a bit generous, as it was really just a massive field, and when we finally huffed and puffed our way to the top, the visibility was less than 50 feet. It was a big disappointment but did make for some interesting photos and decent acclimatization to the elevation.

Lesson learned: Sometimes the journey is more important than the destination. Put forth 100% effort into the trek and you may be surprised by the end result.

Day 6, Lobuche:

The first part of the trek was fairly level, but then we hit it: a very rocky ascent, no clear path, very steep and never-ending. And we were at well over 15,000 feet. It was by far the most grueling part of the entire trip. At the top of this killer mountain, we found dozens of graves and memorials of people who’d died on Everest – the scene of these memorials surrounded by the killer peaks was incredibly serene.

Lesson learned: Get some perspective. For us, this was a quick jaunt to Base Camp on vacation, while for others this was a site of death and memorial. Honor others’ experiences.

Day 7, Mount Everest Base Camp:

Lesson learned: Immerse yourself in victories, large and small. Put down the phone and take time to reflect on your triumph and lessons learned before your next adventure.

 

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Meetings: From Ineffective to Efficient

by with No Comment Featured BlogPeopleProductivity

Ah meetings. Aside from emails, they are probably the bane of any 9-to-5’ers existence. At the beginning of a new job, meetings are a great way to get to know your colleagues and take copious pages of notes to help you learn the ropes, not to mention they fill that empty time when you don’t quite have your own projects yet. Fast forward a few months, though, and you have a full to-do list, an exploding email inbox and not enough time in the day to effectively handle it all. Then, the ever-dreaded meeting request pops into your inbox and you’re one step away from losing it.

Why do we react that way to meetings, groaning to our colleagues as we plop down at the conference table for the fourth time that day?

Because meetings, when not managed properly, are a colossal waste of time and energy. Organizations need collaboration and face-time, but leaders need to work harder at maximizing this time together so everyone walks away feeling accomplished.

For starters, here’s how:

  1. Stop having meetings for the sake of having meetings. I know we get a lot of emails too, but if you simply need everyone’s okay on a decision you’ve already discussed, send an email and be done with it.
  2. Set a time and agenda and stick to them. Unless it’s a strategic brainstorming session, meetings should not last more than an hour and should have defined structure. We tend to repeat ourselves or digress after sixty minutes when we could be back at our desks working on our action items.
  3. Change up your meeting location once in a while. Your office, the conference room, Starbucks and the cafeteria all create different vibes that will keep the group feeling fresh and energized. Caffeinated beverages don’t hurt either.
  4. Close those laptops. I know many people take notes on their computer but it may not always be the most effective. Other meeting attendees can get distracted by the clickety-clack of the keys and the question of whether or not that person is actually listening to you as their face is buried in their laptop. For the note-taker, it can be hard to ignore emails popping up on the screen, especially if you’re not actively engaged in the meeting.
  5. Honor your attendees. As an introvert, I often shut down during meetings filled with extroverts who are thinking aloud and spouting out ideas left and right. I spend those meetings jotting notes and thinking to myself, but my ideas often go unheard because by the time the extroverts are done, the meeting is over. As leaders, we need to honor the different personalities in the room – ask the introverts for their opinions when you notice them thinking quietly, ask the room to silently think for a couple minutes before tossing out ideas.

Bonus: Have you heard about the walking meeting? I have yet to try this but love the concept. We all have heard that sitting is the new smoking but it’s truly hard to avoid. I am a big note-taker so I wonder about the logistics of jotting down ideas for further consideration or remembering action items.

Edited to Add: I found this great article about choosing the perfect meeting venue. Let’s all get out of the office for a meeting this week!

Have you had a walking meeting and what was it like?

What is your favorite, most productive meeting experience? What about the worst or most inefficient meeting you’ve ever attended?

 

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Developing a high-functioning team

by with No Comment Featured BlogPeople

We all know too well the frustration and despair that comes with trying to lead a team that just doesn’t jive well together. People’s motivation, dedication and skill-sets vary, they’re not on board with your strategic vision for the department, or they just flat-out don’t like each other. As the leader, you may end up doing much of their work yourself, not including them in strategic brainstorming sessions, or stopping team meetings altogether, just to avoid your motley crew of a team.

When I think about a great team, I remember a cold winter evening at a corner booth in an Indian restaurant. The five of us had just finished a big project together and as we sat sipping our cocktails, chatting and laughing, I sat back and thought, I really love this team!

But why?Since then, I’ve tried to figure out how to recreate that team, but since cloning isn’t readily available, I thought of some characteristics and best practices for developing a high-functioning team.

Scrap the resume and look for culture fit. I think I just heard an audible gasp from my HR colleagues, so maybe we don’t want to entirely ignore the resume. But once you’ve determined that they have the basic qualifications, look for culture fit. How will they interact with the other team members, the CEO, or the program staff? Are they passionate about the mission (yes, even the finance team should be passionate about the mission!)? Does their attitude and outlook on life fit in with the organization? I’ve seen time and time again where candidates were hired based on the top school, big name work experience or fancy volunteering on their CV but they flopped within weeks at the new place because they just weren’t a culture fit. Please get to know your candidates and ask them what they’re looking for in their next employer’s culture.

Give them a voice. Most  organizations go through an annual strategic planning process with the leadership team and board of directors. CFOs: do you include your staff, even the entry-level accountants? If you want a high-functioning team who’s ready to execute that plan, you must get their input and buy-in from the beginning. I share the prior year’s plan with the group and ask that they come to our next meeting ready to brainstorm and discuss next year. As a finance team, we are so detail-oriented that we don’t often get the opportunity to think big, but in this session we share ideas that contribute to the final draft. Once it’s approved, they already recognize it as part of their work and take ownership over its execution. It is a simple technique that is so often neglected.

Turn them off. No, don’t repulse them by being the smelly lunch eater, but make sure they’re taking vacation or comp time, shutting down computers at a reasonable hour each night, limiting overtime and not checking emails at all hours. Let’s face it – they work at a nonprofit whose cause they’re passionate about so they probably would work 80 hours a week if you asked them. But we should all know by now that productivity will decrease and unhappiness will increase unless our team gets regular breaks from all things nonprofit. As leaders, we need to set the example and the expectations by turning our team (and ourselves!) off at a reasonable time each night. That email will still be there for you in the morning.

Get personal. I love learning people’s stories – their hobbies, families and outside-of-work passions – and in order to build trust I share my story with my team. When I know that Rachel is starting an herb garden or Matt is planning a trip to Sedona or Tom plays in a cover band on the weekends, however irrelevant to our mission as a team, I feel just the tiniest bit more connected to them and our team’s work. We’re not robots, people. Get to know your team.

What was your favorite team like? Were you BFFs or high-efficiency robots or somewhere in between?

 

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Seeing around the corner

by with No Comment Featured BlogFinancial ManagementFinancial StatementsGoal Setting

When I was interviewing for my first CFO role, I had the honor of interviewing with the retired CFO of a Fortune 10 company. I was incredibly nervous and felt so very out of my element – how could I ever stack up to his expectations of a CFO? I ended up getting the job and worked closely with him for several years, almost completely forgetting the anxiety of that first meeting.

One thing I did not forget, however, was his answer to my question: What makes a good CFO? This guy was responsible for the financial health of a major (very successful!) global corporation so if anyone could answer this question, he could. He said:

A good CFO helps the organization see around the corner. This has stuck with me for years. Every time I’m involved in any type of strategic conversation, I imagine myself peering around that metaphorical corner, striving to plan for what’s ahead. Now, I’m no psychic. I don’t have supernatural powers to help me see the future (although, sometimes I think that would be nice – that’s why they say hindsight is 20/20, I suppose). But there are a few practices that can help CFOs lead their organization by seeing around the corner:

Stay Connected. At nonprofits, we wear a lot of hats which can mean CFOs are also doing bookkeeping, HR and IT, plus trying to stay on top of the financials. It can feel nearly impossible to think strategically while you’re completely immersed in the daily operations of the finance department. But to see around the corner, you must stay connected to all parts of the agency. Have lunch with the program staff, meet the development director for a quick update on the annual campaign, go visit a program site and connect with your clients. Staying connected to everyone your organization touches will help you see the big picture of where you are and where you’re going.

Use Your Numbers. We prepare the income statement and balance sheet each month, we explain variances and make adjustments but we’re often only comparing budget to actual, or last year to this year. Two points of comparison don’t often tell a rich enough story. Use your numbers to dig deeper, create 5-year historical analyses and forecast beyond next month. Set aside time on your calendar after each month-end close to dig deep into those Excel spreadsheets and play with your data and I promise you will see farther around that corner than you ever have before.

Be Open to Change. Especially for agencies that have been around for a decade or two, we tend to fall into the same practices, procedures and programs that we’ve always done. When we ask a staffer why we’re doing it that way, they will probably shrug and say, that’s how we’ve always done it. To see around the corner, we have to open our minds to new possibilities. Maybe we need to close an unsuccessful program – take a step back – in order to free up resources to expand another program threefold – take two steps forward. A traditional CFO may try and reallocate resources to make the unsuccessful program better but a seeing-around-the-corner CFO is open to change and can see the bigger picture.

What do you think? How do you see around the corner?Organizations still need help seeing around the corner?

Contact us!