Unpredictable economic trends have caused nonprofit organizations to worry about meeting their financial obligations. As a non-profit leader, you can have the confidence to plan and take necessary actions by efficiently managing your cash flow.
Cash flow management is more than taking your annual budget and dividing by 12. Effective cash flow management includes analyzing cash inflow and outflows based on the timing of receipts and payments. For example, if your organization manages an annual convention, operational costs may increase during that month, as more staff may be necessary for the event. If your headquarters is located in an area that experiences extreme cold in the winter, costs for those months may increase as extra heating may be necessary.
If your current software does not have any budgeting or forecasting capabilities, you can create a report using a grid, such as Microsoft Excel to give you a visual idea of when you can expect cash inflow and outflow, and will help you predict cash flow more accurately in the future.