In today's rapidly changing financial landscape, with increasing economic pressures and the shift toward digital solutions, staying on top of financial management has never been more important.
At XP, our finance team (including a certified financial manager) has put together five practical tips to help nonprofit financial leaders strengthen their operations:
- Simplify Your Accounting
- Use Charitable Discounts
- Leverage Xero for Cash Flow
- Go Paperless
- Invest in Financial Management Tools
1. Simplify accounting with financial accounting software for nonprofits
Managing journals each month can be exhausting, especially when you’re shifting funds manually without moving actual cash. By using features like tracking categories in Xero (financial accounting software for nonprofits), you can organise transactions quickly and spend less time on bookkeeping.
Case study: Reducing accounting time by 45%
Independent Living Services (ILS) cut their monthly accounting process from 7 days to just 4 by adopting tracking categories in Xero. This freed up staff to focus on their mission, not their spreadsheets.
2. Use charitable discounts to cut costs
Nonprofits are eligible for discounts on leading finance tools such as Xero, ApprovalMax, and Lightspeed. Taking advantage of these savings is one of the simplest ways to maximise your resources.
At XP, we regularly help clients unlock these charitable discounts through our licensing service, sometimes saving them thousands each year.
Case study: Saving a client $650
ILS was unaware of nonprofit rates for their software subscriptions. We secured discounts across their key platforms, saving over $650 annually.
3. Leverage Xero for better cash flow
Cash flow is the lifeblood of any nonprofit. Xero’s advanced features, from forecasting to expense tracking, help leaders stay on top of their finances. As a partner with up-to-date certifications, we guide organisations to get the best from Xero.
4. Go paperless for smoother processes
Paper receipts and bills aren’t just inconvenient, they slow down approvals and make records vulnerable to loss. A digital-first approach creates faster workflows and better accessibility, especially for remote teams.
Case study: 50% faster approval process
Paralympics New Zealand cut their approval times in half by digitising receipts and bills, reducing the impact of staff absences and improving remote access.
5. Invest in modern financial management tools
Sometimes, outdated systems create more problems than they solve. By investing in up-to-date financial management tools, such as integrated P.O.S. systems or custom approval workflows, nonprofits can reduce errors and increase efficiency.
Conclusion
By implementing these strategies, your nonprofit can enhance its financial management practices, ensuring long-term sustainability and a greater impact on your mission.