Implementing policies and procedures to properly maintain your accounts is a necessary task.  What I have found in managing my own nonprofit’s fund accounting, leads me to help us consider some important habits to establish from the very beginning.  Maybe like myself, you have such limited accounting experience that you need some suggestions as to how to keep the accounting running smoothly.  Here are some areas where I have found bad habits creeping in, along with some suggestions to keep you organized and free from potential pitfalls.

1.  Reimbursement Policies

Keep the process of reimbursing individuals who have made purchases for your organization clean.  Create a document (many can be found by googling “reimbursement request template”), have the individual fill this out and attach the receipt.  I strongly encourage only allowing reimbursment of transactions with a receipt.  As an organization grows, the likiihood that reciepts will be lost and not turned in only has the potential to grow.  Establish this policy from the beginning and keep yourself and others accountable.  Set a specific time each month or week, depending on the number of requests you receive, so that individuals you are reimbursing know when to expect their check.  Also, make sure an individual has the ability to be responsible for the amount of the purchase before you impose on their bank account.  Communication is key here.

2.  Bank Deposits

Establish a weekly routine with entering in your donors information (did I mention Aplos does this in the most efficient manner and tracks your information as well?), their check amount, copying the check for your records, and making your deposit.  You want to be timely and not have checks sit in your inbox for weeks at a time leaving your donors wondering when their check is going to clear.  

3.  Entering Contributions from Paypal

Our organization uses Paypal for some of its recurring donations.  These monthly contributions are transferred into our bank account upon our approval.  Just like bank deposits, an established time to enter these donations into our software is needed.  Getting behind here can mean more work later.  We transfer donations twice a month and thus should follow suit with entering them as well.  By entering transactions consistently, we also are able to notify donors of any glitches or clue into missed contributions, if any.

4.  Thank You Notes

Writing thank you notes after donations may seem old fashioned, but I firmly believe your donors needs to hear from you on a personal level.  Keep a system in place that allows you to track whether a note has been written and sent after receipt of a contribution.  Communicating gratefulness for others generosity must never be underestimated.  

5.  Upkeep

Because I am considered a volunteer for our own nonprofit, being consistent has proven difficult at times.  Decide on a day or days that work best for your schedule and maintain the block of time set aside for tasks.  Make a schedule for yourself with the tasks that need to be accomplished.  The orderly upkeep of the receipts, deposits, filing, notes, and entering of transactions will possibly prevent disorder and chaos in your organization.  Establishing good habits now will only serve your organziation well in the future as it grows and takes on more responsiblities.