The CFO'S Perspective

Most non-profit organizations rely on gifts from other businesses and the public at large to achieve their goals. These come in the form of both tangible property and personal services (collectively nonfinancial gifts), which are referred to as in-kind contributions. 

Recording these non-cash gifts allows a nonprofit organization to accurately present the types and value of contributions it receives to support its mission. Even though in-kind gifts are a major source of support for many nonprofits, recording and reporting them properly can present some unique challenges.

It's a tough environment for small businesses in the United States, particularly new ones. The Bureau of Labor Statistics reports that almost 20% fail in their first year and only about half make it to five years. The threats are piling up, and they range from failing to find a viable product or service to customer service gaffes and even cybersecurity issues. But some of the biggest problems that small businesses face are financial in nature.

Financial woes can impact a company of any size. 2018 marks the 10-year anniversary of the height of the financial crisis when regulators walked into Seattle's Washington Mutual and shut down one of this nation's largest regional savings and loans for good. Few longtime area residents have forgotten the impact that Frederick & Nelson had on the area's retail scene, before becoming victim to some strategic and financial missteps. Whether a company is large or small, public or private, many of these issues begin at the granular level.

Repeat after me…

Accounting is a team sport."  

This has been my mantra for the past 30 years and it’s as important and true now as it was 30 years ago.  What I have learned in my 30+ years as a CFO is that accounting works best when it is integrated with the management team and you will never be at your best if your accounting team works in a silo.