New Fiscal Year, Now What? A Fresh Start for Your Nonprofit’s Finances

 



New Fiscal Year, Now What? A Fresh Start for Your Nonprofit’s Finances

For many nonprofits, July 1 marks the start of a new fiscal year—a perfect opportunity to reflect, reset, and refocus your financial operations. Whether you're a seasoned executive director or a first-time treasurer, here are key steps your organization should take now to set the tone for a successful year ahead.

1. Close the Books on Last Year

Before diving into new initiatives, be sure last year’s financials are finalized. That includes:

  • Reconciling all accounts (bank, credit cards, grants, etc.)

  • Reviewing all income and expense entries for accuracy

  • Preparing reports for the board and stakeholders

  • Archiving key financial documents

If you're working with an accountant, now's the time to connect and make sure everything is wrapped up properly.

2. Kick Off with a Fresh Budget

Your new budget should be more than a spreadsheet—it should be a roadmap. Review your budget in detail:

  • Are the projections realistic based on last year’s performance?

  • Do you have updated grant or funding commitments?

  • Are you allocating enough for capacity-building and mission-critical initiatives?

Tip: Don’t forget to build in flexibility. Budgets should evolve with your organization.

3. Review Internal Controls and Processes

A new fiscal year is an ideal time to review your accounting policies and procedures. Consider:

  • Updating your internal control manual

  • Reviewing who has access to financial systems and bank accounts

  • Checking that your expense reimbursement process is working smoothly

  • Ensuring your finance team is properly trained in any new systems or tools

4. Set Financial Goals and KPIs

Start the year with measurable objectives. For example:

  • Increase unrestricted revenue by 10%

  • Reduce administrative expenses by 5%

  • Improve monthly reporting timelines
    These goals help your team stay focused and allow leadership to track progress all year long.

5. Prepare for Your Next Audit or 990 Filing

It may feel early, but trust us—future-you will be grateful. Organize documentation and begin gathering materials for your next financial review or IRS Form 990 filing. Consider what feedback you received last year and proactively address any flagged issues.

6. Leverage Technology

Still tracking donations in spreadsheets? Still manually cutting checks? This is the year to modernize. Consider switching to cloud-based accounting software like QuickBooks Online, adopting digital approval workflows, or integrating your donor management system with your financials.

7. Re-engage Your Board

Ensure board members are aligned with financial goals and reporting expectations. Provide a clear calendar of finance meetings, deliverables, and required approvals. A financially engaged board is a powerful asset.

Final Thoughts

A new fiscal year is a clean slate—and the perfect chance to build strong financial habits that support your mission. With a little planning, the right tools, and a proactive mindset, your nonprofit can start the year organized, empowered, and ready to make an even bigger impact.

#NonprofitFinance #FiscalYearPlanning #NonprofitLeadership #NonprofitAccounting #990Filing #NonprofitBudgeting #MissionDrivenFinance #SmallNonprofitSupport #AccountingBestPractices #StartFresh #QuickBooksOnline #NonprofitCompliance #BoardEngagement #CloudAccounting #FinancialPlanning


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