The way forward for nonprofit accounting is evaluation. Not bookkeeping.
A Director of Finance at a nonprofit shared this sentiment with us throughout our analysis on the worth of AI in fund accounting. At Blackbaud, we’ve seen the shift from guide information entry to deeper evaluation first-hand. We’ve launched instruments like automated funds and Perception Designer to assist our purchasers get solutions to their questions sooner.
Now, AI-powered accounting performance is to the purpose of being greater than a shiny object. It may create actual worth—once you’ve taken precautions on how the software is skilled.
AI in fund accounting has the ability to drive deeper evaluation and elevated effectivity throughout your nonprofit accounting crew, with the fitting safeguards for accuracy and privateness.
Right here is how Blackbaud is considering AI-enhanced performance for nonprofit accounting.
What Do Nonprofit Finance Professionals Need from AI?
You handle advanced and numerous monetary information. You need to guarantee compliance with varied requirements and laws. And also you want to have the ability to present your group monetary progress towards its strategic objectives.
These finance features require a excessive stage of accuracy, consideration to element, and analytical expertise. And they’re usually rife with time-intensive guide duties.
Based mostly on our analysis and discussions with nonprofit finance professionals, nonprofit organizations see the worth of AI to assist them transfer away from guide duties and time-consuming report era to allow them to deal with evaluation and data-driven decision-making.
They need AI-enhanced instruments to automate repetitive and tedious duties, akin to information entry, bill processing, and reconciliation. They need it to supply sooner and smarter insights, akin to funds evaluation, money stream forecasting, and anomaly detection. They need to get necessary info sooner, utilizing AI to floor info that may in any other case go unnoticed, or prioritize what they should know.
It Has to Be Correct and Safe
“Virtually” or “possibly” doesn’t work in nonprofit finance. For any AI-assisted processes to be beneficial for the finance crew, it have to be correct, perceive the constraints of a nonprofit, and the info it makes use of have to be safe.
Earlier than adopting any AI-enhanced software, finance professionals ought to ask some crucial questions, akin to:
- Is it offering a holistic image? Is it contemplating every little thing I have to reply this query?
- Is it a closed mannequin and solely taking a look at my information? How are you ensuring it’s not pulling from different sources?
- Is it conscious of GAAP and compliance requirements, so it received’t make strategies that don’t align with nonprofit accounting finest practices?
- How is the AI mannequin being skilled, and the way can I make certain it’s not being skilled on confidential information?
- Is that this a shiny object or will it present precise worth for my group when it comes to improved effectivity or accuracy?
- What’s the confidence stage of the mannequin for the info it’s understanding? Is it offering notifications for information it doesn’t fully perceive, akin to the full quantity paid on a crumpled receipt submitted by a program supervisor?
These questions may help finance professionals assess the standard, reliability, and safety of AI instruments, and keep away from potential pitfalls, akin to inaccurate or deceptive outcomes, information breaches, or compliance violations. Finance professionals also needs to search for AI instruments which have a human-in-the-loop method, that means that people can all the time evaluation, override, or flip off the AI performance if wanted.
How Blackbaud Is Approaching AI in Nonprofit Accounting
At Blackbaud, we have now a protracted historical past and deep experience within the nonprofit sector. We perceive the distinctive wants and challenges of nonprofit finance professionals, and we’re dedicated to offering them with the most effective options attainable.
That’s why we aren’t within the enterprise of making AI fashions from scratch. We’re being very selective and strategic in regards to the AI fashions we incorporate into our system, and we’re partnering with main AI suppliers to make sure the very best high quality and efficiency.
We’re additionally leveraging AI to create effectivity throughout Blackbaud merchandise, in order that finance professionals can entry and combine information from varied sources, akin to fundraising, advertising and marketing, and companions. We’re engaged on methods for AI to boost our present performance, akin to automating bill creation, simplifying journal entry reclassification, and operating steady reconciliation with the system notifying you of points.
These options are designed to assist finance professionals save time, enhance accuracy, and acquire insights, whereas additionally sustaining management and visibility over their information and processes.
Utilizing Your Intelligence for Good
AI is doing greater than making your finance crew sooner and extra strategic. There’s a bigger implication throughout all nonprofits, the communities you serve, and the bigger world. Through the use of AI, you’ll be able to improve your mission and affect, and contribute to the better good.
At Blackbaud, we’re keen about utilizing intelligence for good. We’re not solely offering AI-enhanced instruments for fund accounting, but in addition for different areas of nonprofit administration, akin to fundraising, advertising and marketing, and analytics. We’re proud to be a part of a neighborhood of changemakers who’re utilizing AI to make the world a greater place.
AI in fund accounting will not be a distant future. It’s a current actuality. And it is a chance for nonprofit finance professionals to raise their function and affect. At Blackbaud, we’re right here that can assist you navigate the AI panorama and give you the most effective instruments and assets to succeed.
If you’re curious about studying extra about how Blackbaud is approaching AI in fund accounting, and how one can profit from it, try our most up-to-date Monetary Edge NXT Product Replace Briefing, the place we share extra particulars and examples of our AI-enhanced options.
