Setting the Foundation for Long-Term Success

Financial health is one of the most critical components of organizational excellence. Without strong financial oversight, you risk spending money you don’t have or running out of funds before you can accomplish your mission. If your organization has identified financial operations as an area for improvement, you’re not alone—many newsrooms and mission-driven organizations struggle with the same challenge. The good news? There are clear, actionable steps you can take to build a stronger, more sustainable financial foundation.

Build a Solid Financial Infrastructure

Financial management is a common gap in struggling newsrooms. Even if your organization isn’t new (or struggling!), taking a back-to-basics approach can help ensure you’re setting yourself up for success.

• Implement professional bookkeeping and accounting software. If you don’t already have a system in place, this is step one. Look into platforms like QuickBooks, Zoho Books, Xero, or FreshBooks and hire a bookkeeper or accountant to manage it.

• Automate bill payments. Using a service like Bill.com or Melio (or one provided by your accounting system) ensures that payments are processed on time and tied directly to your accounting software, and major payments aren’t missed. These systems also can (and should!) connect to your accounting system. This also should allow for proper approval of bills and expenses

• (if you use them) Connect business credit cards to your accounting system. This simplifies bookkeeping and ensures transparency in spending.

• Enter your budget in your accounting system. Your budget shouldn’t live in a spreadsheet—it should be integrated into your accounting tools so that budgeted versus actual spending is always in view.

Support Your Team: Payroll and Contractor Management

A well-functioning financial system isn’t just about numbers—it’s about people. Payroll, reimbursements, and contractor payments need to be seamless, or they become major pain points.

• Ensure your payroll system is integrated with your accounting system. This reduces errors and improves efficiency. You may also choose to pay your contractors through this system too, rather than through your bill pay system. Choose the method that is easiest for you.

• Establish an employee reimbursement process. Having clear guidelines and a simple method for reimbursements keeps your team financially secure and reduces frustration. You also may choose to put controls or expectations into place about what expenses are reimbursed and at what levels.

• Follow compliance rules for contractors. Misclassification of workers can lead to legal trouble. Use the ABC test for contractors to ensure you’re handling 1099 workers correctly.

Build Oversight and Compliance: Prevent Surprises

Financial management isn’t just about tracking numbers—it’s about planning ahead and staying compliant.

• Know your tax deadlines and filing responsibilities. Even nonprofits have tax obligations. Make sure you know who is responsible for filing your forms.

• Monitor cash flow, expenses, and revenue regularly. Set a schedule for reviewing financial health and avoid surprises.

• Find a trusted advisor. Your treasurer, board chair, or another financial expert should help review reports, support you, and hold leadership accountable.

Plan for Growth: Setting Financial Goals

What does success look like for your organization? Financial planning isn’t just about keeping the lights on—it’s about setting your organization up for future growth and stability.

• Define your ‘fully funded’ budget. If everything goes right, what does your organization look like? What roles would you add? What would compensation look like?

• Determine your minimum funding level. What’s the absolute lowest revenue level you can sustain?

• Identify financial contingency plans. If funds run low, what expenses can be cut? Do you have emergency reserves?

• Set a minimum cash reserve. Decide how much cash you need on hand to operate comfortably without making significant budget changes.

• Establish decision points for investments and hiring. At what cash level do you spend that one-time investment. At what level of revenue do you invest in a new tool? When do you confidently hire another staff member?

• Prepare for short-term challenges and long-term sustainability. If revenue declines, what’s your plan for temporary cuts (furloughs, reduced expenses)? At what point do permanent cuts become necessary?

Take Action: Build Your Financial Roadmap

1. Analyze your burn rate. How much are you spending each month?

2. Assess your cash on hand. How long can you sustain current operations?

3. Develop a working budget for the next 12-24 months. Capture both predictable and variable expenses, as well as expected revenue.

4. Review your budget with a financial expert. Your treasurer, board chair, or even a bookkeeper or accountant can help ensure it’s realistic and sustainable.

5. Integrate your budget into your accounting system. This helps track actual spending against projections.

6. **Ask for help.** There are resources, mentors, and advisors available—use them!

Pro Tip: Financial operations aren’t just administrivia—they’re a powerful strategic tool.

Investing in strong financial management gives you control over your organization’s future. It allows you to make informed decisions, seize opportunities, and weather financial challenges with confidence. Getting these fundamentals right now will free you to focus on what really matters—your mission.