Your non-profit may not have the budget for a full-time accounting team, but there’s another option that can be customized to your organization’s needs. Fractional services can help organize your accounts, assist with audits, optimize your financial reporting, and develop a sustainable financial strategy that provides your organization with ongoing stability, all at an affordable rate. Here’s how the Barnes Dennig Fractional Accounting and Advisory team stepped in to help a local church organize their challenging financial recording and reporting situation.
The challenge
Prior to the engagement, the finance committee struggled with the accuracy of financial statements, making budgeting appropriately a difficult and time-consuming task.
The church’s financial reports were in desperate need of a cleanup.
Donation income and fund expenses weren’t consistently recorded on the Profit & Loss statement and many times, fund income and expenses were recorded directly to the Fund on the Balance Sheet. When the Fund income or Fund expenses were recorded on the Profit & Loss statement, then the Fund balance wasn’t adjusted on the Balance Sheet. The church’s preschool income and expenses were being tracked separately, which added to the challenge. The church didn’t have an accurate picture of their income, expenses, and fund balances, and it had been like that for years.
The solution
Enter a top Barnes Dennig fractional accounting resource. For five years and counting, they’ve assisted the church with bringing their financial reporting back into line and offering insights that have helped the church optimize their financial strategy and budget with confidence – and much-needed peace of mind.
To start, our fractional accountant and the Church Treasurer collaborated on the month-end close process while sorting out the accounts and investigating past inaccuracies. They found opportunities to streamline the process, saving the church both time and money moving forward. They were also required to conduct an organizational audit, so they worked together to correct the Profit & Loss statement and provide an accurate Fund Balance report.
Then COVID-19 hit. The fractional accountant, alongside our tax team, assisted the church in filing for the Employee Retention Credit (ERC), filing for two Paycheck Protection Program (PPP) loans, and subsequent loan forgiveness. These credits and loans helped keep the church afloat during this historic time of challenge and upheaval.
The church had also acquired some new grants and created additional funds, which meant our fractional accountant had another challenge to navigate. They had to ensure all the funds were allocated correctly and complied with the respective grant requirements. Alongside the Treasurer, they compared current and past grants, creating tentative plans for the budget moving forward.
With the grants sorted out and accounts reconciled, the Treasurer and fractional accountant could focus on optimizing the various processes for recording and reporting.
To continue with this directive, our fractional resource assisted the church in upgrading their accounting software subscription so that payroll reports and tax payments would be filed and remitted automatically. Changing software mid-year can be a rocky road, especially with monthly reporting considerations, but our team provided constant support to ease both the initial migration and another payroll transition years later. During both upgrades, the fractional accountant frequently met with the client and the provider to mitigate potential disruptions and answer any questions the client had.
The results
Having accurate financial data for the first time in many years has allowed the Finance Committee to more precisely strategize and manage their assets, leading to an overall more efficient organization. The Treasurer says that their confidence in their financial management abilities has grown significantly since we started.
Today, the church is operating smoothly, as our fractional accountant continues to provide advice and accurate financial reports. Every month, the fractional accountant attends monthly finance committee meetings, answering any questions about the reports and utilizing their knowledge and experience to advise them on future actions.
The church is running efficiently, their financial statements are accurate, and the team has a high level of confidence in budgeting – making better use of the church’s resources and helping them further their mission in the community. By ensuring all funding is budgeted, used, and reported appropriately, our fractional resource has helped the church stay compliant and utilize all their assets to the fullest extent, expanding their impact to the community even further.
Additional non-profit fractional accounting resources
Does your non-profit need help organizing your finances and polishing your reporting? Fractional services might be the answer. Contact us today for a free consultation with our non-profit fractional accounting professionals.
Have questions about fractional accounting and advisory services? We’ve got answers. Our fractional team developed this list of questions they’re asked most often to help you find the solution that’s right for you. Download the FAQ now! We also have a free Fractional Accounting & Advisory Services toolkit that includes a decision-making framework to evaluate if the fractional model aligns with your situation.