5d ago in General discussion
5 Must-Track Metrics for Non-Profit Financial Clarity
Are your numbers telling the whole story?
If you’ve ever felt like you’re crunching numbers but still missing the big picture, you’re not alone.
These 5 key metrics can bring clarity to your financial health:
- Days of Cash on Hand: How long can you sustain operations with current cash? Track inflows and outflows to avoid surprises.
- Unrestricted Revenue Percentage: Unrestricted funds = flexibility. Aim to grow this percentage for freedom to spend where it counts most.
- Operating Reserve: Your rainy-day fund for emergencies. Monitor it closely for peace of mind.
- Revenue Diversification: Too much reliance on one source? This metric reveals balance—or risk.
- Current Ratio: The ultimate test of short-term stability. Can you cover near-term bills with near-term cash?
Quick Tips for Accuracy:
- Use dedicated accounting software (e.g., QuickBooks Nonprofit).
- Reconcile accounts monthly for precise tracking.
- Generate regular, timely financial reports to spot trends early.
By keeping these KPIs in focus, you’ll steer your organization toward resilience and success.
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5 Must-Track Metrics for Non-Profit Financial Clarity
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