3 Essential Technologies Every Nonprofit Finance Department Needs in 2021

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Technology is constantly evolving — and so is your nonprofit and the roles within it. Do you feel confident that your nonprofit is set up in a way that allows it to evolve with a changing technological landscape while still keeping its mission top of mind? If you prepared for 2021 but haven’t thought much beyond that, you may already be behind the curve.

Past vs Present: Financial Management of Today

When we think about accounting in the past, it was centered around debits and credits, booking journal entries, and a more rearview mirror focus. Teams were looking through financial activity from the past 30 to 90 days by the time the books were closed. The data was so old that decision-making wasn’t a timely event, and, unfortunately, a lot of systems are still operating this way.

Today, nonprofit CFOs are looking for technology to:

  • Boost productivity & streamline processes
  • Supply insight for better and faster decisions
  • Focus resources on their core mission
  • Deliver scale for growth

Financial management is evolving. No longer centered around just transactional activity, it has taken on a future-focused vision, and 2020 raised the bar even more. In a constantly changing environment, the need for visibility and timely information to make decisions faster and better has become imperative – and made the financial team more vital than ever before.

Essential Technologies for Nonprofit Finance

To transform today’s nonprofit accounting systems from systems of record into systems of intelligence for finance teams, leadership, and organizations as a whole, there are a few essential technologies to adopt – Cloud Computing, AI, and Predictive Analytics.

Cloud Computing

  • Greater security, maintainability, and disaster recovery
  • Economical, updated infrastructure
  • Reliability in remote work
  • Rapid advancements in features and functionality
  • System integrations
AI Machine Learning

AI / Machine Learning

  • Continuous monitoring of activities of the organization
  • Automatic detection of potential issues based on prior transactions
  • Continuous audit and security monitoring
  • System recommendations
  • Process automation

Predictive Analytics

  • Time saved with a faster time-to-close process
  • Easier, quicker grant reporting
  • Real-time access to financials
  • Identify trends for more accurate planning, forecasting, and decision making

For a deeper dive into the future of technology and financial management for nonprofits, watch the on-demand video, 4 Essential Technologies that Every Nonprofit Finance Department Needs in 2021.

Future-focused, mission-driven financial management

Interested in implementing these technologies into your organization to achieve faster, more successful results for the mission you support? Let our team of experts help!

CATEGORIES: Cloud Technology, Trends