Should You Rotate Audit Firms?

The practice of having a routine audit or review of the financial records of a non-profit organization is invaluable.  Especially in this day when fraud is so prevalent.  Being committed to this process provides assurances to both the board of directors of the organization as well as donors.  The audit/review process allows for continued development of best practices by agency staff under the watchful eye of a CPA. Highly successful organizations are those that know how to leverage these practices in their business operation.

There has been some conversation about audit firm rotation within the nonprofit community.  Some organizations have adopted this philosophy thinking that rotation between firms provides same sort of fresh prospective that rotating board members in and out of board positions does.  I would like to suggest otherwise. 

Super Hero Method

What keeps you up at night?  Is it how to make payroll or pay your sub-contractors? Or maybe it is how you are going to be in a financial position to embark on that new service offering.  It comes down to management.  Profit management. 

I would like to suggest that there are two methods for managing profit – one not so good and one super hero good.  The first, I am afraid, is the method that business owners use most often.  Bank balance accounting.  This is where business decisions are made based on the available cash in the bank.  The advent of online banking has made this easier than ever.  Login, check the balance.  Then it’s either party mode or panic mode.  A high balance may cause the owner to become overly optimistic and splurge on those things he might not really be able to afford over the long run.  When the balance is low the owner generally doesn’t think strategically but reacts by finding ways to increase income by any means necessary.  Most often this means not paying themselves.  Business owners that don’t get compensated from their business activity build resentment toward the business they started and love and resentment toward their faithful employees who are getting paid.  Not only that but the ideal client becomes anybody with a check book.  Which can result in long term customer relationships that become cringe worthy and tedious.  This is a recipe for death of a business.

 

 

Plan Your Content

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If you’re considering adding a blog to your site, you’ll want to have a plan beforehand. Planning your blog will help your subject matter remain consistent over time. It’ll also help you determine whether or not there’s enough material to maintain a steady stream of posts.

One pitfall many new bloggers run into is starting a blog that isn’t posted to frequently enough. A shortage of recent posts can give your visitors a bad impression of your business. One may think “I wonder if they’re still in business” or “they may want to hire a writer.”

A blog, like any other customer facing aspect of your business, communicates your brand. If it isn’t maintained and given proper attention, people will notice. Post regularly and keep your content fresh. Give your audience a reason to visit often.

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Categories and Tags

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If you write about a variety of subjects, categories can help your readers find the posts that are most relevant to them. For instance, if you run a consulting business, you may want some of your posts to reflect work you’ve done with previous clients, while having other posts act as informational resources. In this particular case, you can set up 2 categories: one labeled Projects and another labeled Resources. You’d then place your posts in their respective categories.

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