How Tech Is Nonprofit's True Financial Tool

This Nonprofit Power Week episode serves up a guidebook on ways to think of tech at your nonprofit!  Embracing technological innovation in accounting and finance in the nonprofit sector, especially as it lags behind other industries in adopting these tools. Nonprofits can reduce errors, mitigate fraud, and make more strategic decisions, ensuring their long-term sustainability.  Host Julia Patrick interviews Ben Hays, a manager with Your Part-Time Controller (YPTC), during Nonprofit Power Week, on the evolving role of technology as a financial tool in the nonprofit sector.  The conversation points to how data and technology are transforming financial processes, creating new efficiencies, and providing nonprofit organizations with the insights they need to thrive.

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Ben begins by boasting about the value of data, noting that it is "like gold" for nonprofits. He outlines a three-step process crucial for leveraging data: gathering it, applying ETL (Extract, Transform, Load) methods to manage it, and finally delivering the information to decision-makers in an accessible format. He encourages nonprofits to embrace technology rather than fear it, underscoring how automation can streamline mundane tasks and allow the staff to focus on strategic analysis. As Ben advises, “Don’t be afraid of technology. A lot of times people say, ‘oh, technology, that’s evil, it can’t be trusted,’ just lean in. It’s time to accept that technology is here and it’s here to make those mundane tasks easier.”

Ben also touches on the increasing role of artificial intelligence (AI) in financial processes. AI, he explains, can automate repetitive tasks like invoice processing and provide insightful financial analysis. By comparing financial trends with similar organizations, nonprofits can identify opportunities for growth and efficiency. However, he cautions against blind reliance on AI: “You need to have some lens of skepticism when you get something back from AI, and ask for its sources.”, which helps ensure the reliability and accuracy of the AI-generated insights.

The lively chat also digs into the importance of data visualization (dataviz), particularly for presenting financial data in a clear, concise manner to stakeholders who may not have a financial background. Ben points to the importance of simple and focused communication: "We have cash available for 88 days" could be an example of a headline in a data visualization, delivering key information efficiently.

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