Financial administration for associations: How do you keep it organized and simple?
Properly managing the financial administration for associations is essential. Why? Bad administration can lead to loss of subsidies, fines, or even distrust among members. Research shows that 65% of the associations have difficulty keeping their financial records in order. However, that doesn't have to be the case!
In this blog, you will learn how to manage your association's financial administration easily and professionally. We'll discuss practical tips, key points of interest, smart solutions and how NIKKI can unburden your financial administration.
How NIKKI can unburden your financial administration
The financial administration of an association goes far beyond just keeping track of income and expenses. It includes:
- Accounting for associations: Processing invoices, purchase and sales entries and keeping track of bank transactions.
- Financial Management: Monitoring the financial health of the association and preparing budgets.
- Tax return: Many associations have to file tax returns periodically, for example for VAT.
- Prepare financial statements: At the end of the financial year, comprehensive financial statements must be prepared.
- Subsidy administration: Subsidies are often an important source of income. An error in the administration can lead to the loss of these crucial resources.
- Cash check: An annual cash check by an independent committee is mandatory under most statutes.
Outsourcing financial administration: Is it worthwhile?
Many associations choose to outsource the financial administration to an administrative office that specializes in associations. Why should you consider that?
- Save time: You can spend more time organizing activities and supporting your members.
- Expertise: Professional offices have experience with complex regulations and can prevent errors.
- Continuity: Even when board members change, the administration remains in order.
For example, NIKKI offers a total package that includes not only accounting, but also tax returns and subsidy administration. With reliable software like AFAS SB+ you will be completely unburdened.
How do you keep an association's accounts?
Accounting can be done manually, but there are far more efficient methods available. Here are three key steps:
- Use the right software
Opt for software that has been specially developed for associations. This saves you a lot of time and prevents errors. A good example of this is the AFAS SB+ system that NIKKI uses. This gives you real-time insight into your financial status. - Automate recurring tasks
Think of automatically processing bank transactions or preparing payments. This keeps your administration up to date without having to worry about it on a daily basis. - Set up clear processes
Make clear agreements within the board about who is responsible for which tasks. This prevents miscommunication and duplication of work.
Best association financial accounting software
Good software is essential for efficient financial management. Here are some features to look out for:
- Usability: It should be easy to understand, even for board members without a financial background.
- Automation options: Think of automatically reading bank statements and generating reports.
- Accessibility: Cloud software offers the possibility to access the administration anywhere, anytime.
It AFAS SB+ system is an excellent example of such software. In combination with NIKKI's services, it offers everything an association needs.
Checklist: financial obligations for associations
A structured approach starts with a good checklist. Here is an overview of the most important financial liabilities:
- Collect contributions: Ensure a tight process where members pay their contributions on time.
- Applying for and justifying subsidies: Keep track of what subsidies are available and ensure correct accountability.
- File a tax return: Think of the VAT return or any other tax obligations.
- Prepare financial statements: This provides insight into the financial situation and is often required for subsidy providers.
- Perform a cash check: Have the cash committee check the financial administration annually.
A comprehensive checklist makes it easier to keep an overview and ensures that you don't miss anything.
What specific administrative services does NIKKI offer for associations?
We offer a wide range of administrative services, including purchasing/selling invoices, preparing payments, processing bank and cash statements, general auditing, drawing up annual balance sheets and reconciliation.
Optional services may also be available, such as: Payroll administration, grant applications, contribution collection and invoice preparation (Sponsor invoices, sanctions and others).
If you have any wishes/needs that are not found on this brochure, you can always feel free to contact us. For other wishes, we will always be able to do internal research to see if we can still unburden you.
Frequently asked questions about NIKKI Admin
What benefits does the cooperation between NIKKI and AFAS offer for the administration of associations?
Our cooperation with AFAS offers your association the advantage of seamlessly managed administration. With the reliable AFAS SB+ system, we arrange everything so that you always have up-to-date financial information. We ensure that the administrative process runs smoothly, so you can focus on managing your association, while we take care of the rest.
How do other associations experience the cooperation with NIKKI Administration?
We are currently conducting a pilot in cooperation with the Municipality of Amsterdam, where the first 10 associations are allowed to test our services for the first time.
We expect the pilot to be completed successfully by the end of next year. By then, we will evaluate the results and, based on the positive feedback we have received so far, we hope to make our services more widely available to other associations.
What are the first steps for an association interested in NIKKI Administration?
The first step is easy: take contact us for an informal conversation. We will discuss your needs and together we will see how NIKKI can best support your association. After this conversation, we will draw up a proposal that is tailored to your specific situation.
How does the contact and communication between associations and NIKKI work?
At NIKKI, we attach great importance to personal contact and open communication. You always have a permanent contact person who knows your association inside out. We can be reached by phone, email and, where necessary, personal appointments. We ensure that you always get a quick and clear answer to your questions.
How does the switch to NIKKI Administration work for an association?
The switch to NIKKI Administration is smooth and personal. We will start with an introductory meeting to properly understand your specific wishes and the current administration. After that, together, we will make a clear step-by-step plan for the transition. Throughout the process, we will assist you, ensure a smooth transition, and answer any questions you may have.
How does NIKKI ensure that directors always have insight into the financial status of their association?
At NIKKI, we ensure that you always have insight into the financial status of your association by giving you a personal login. This gives you access to a clear and up-to-date view of all financial data at any time. This way, you can easily monitor the state of affairs, view reports and make decisions quickly, without having to dive deep into the administration yourself.
Conclusion: Simplify your financial administration with the right support
Managing the financial administration an association does not have to be a heavy burden. By using the right software, automating tasks and possibly hiring a specialized administrative office, you save time and prevent errors.
Wondering how NIKKI can unburden your association? Request a demo and discover the possibilities. With NIKKI, you always have real-time insight, complete peace of mind and the certainty of error-free administration.
Get in touch today and make your financial administration easier than ever!
At NIKKI, we love personal contact and quick solutions. Whether you have a question about our services, want to discuss a collaboration or just want to have a chat, we're here for you.
