Finance & Admin · Cash Flow
Your accounting system shows the past. You need to see 60 days forward.
Thirty-six percent of nonprofits ended 2024 with an operating deficit — the highest in ten years. Fifty-two percent have three months or less of cash on hand; 18% have less than one month. In LA specifically, 58% of nonprofits face long-term sustainability concerns compared to 24% nationally. This is a structural crisis, not an anomaly.
The problem
The reimbursement gap and why accounting software doesn't solve it.
The mechanism is well-understood: nonprofits deliver services, then wait to be reimbursed. Government contracts in LA can take 40–100 days to process invoices. During that window, the organization must cover payroll, facilities, and operations from its own reserves. If those reserves are thin — and for most small nonprofits they are — this creates a persistent cash shortfall even when the organization is technically profitable on paper.
The technology problem is that most nonprofit accounting systems provide no forward-looking cash view. They show historical transactions accurately. They don't show 'we are owed $180,000 in outstanding reimbursements, the earliest expected payment is 45 days from now, and payroll is due in 8 days.' Finance directors build this in Excel, if they build it at all.
- 36% of nonprofits ended 2024 with an operating deficit — highest in ten years
- 52% have three months or less of cash on hand; 18% have less than one month
- LA government contracts take 40–100 days to process invoices
- 58% of LA nonprofits face long-term sustainability concerns vs. 24% nationally
- Most accounting systems show history accurately but give zero forward visibility
How we approach this
AR aging + forward cash projection — built on QuickBooks Online's API.
AR aging dashboard
All outstanding invoices by funder, submission date, expected payment date, and days outstanding. Color-coded by aging bucket: current, 30–60 days, 60–90 days, 90+. Surfaces what needs follow-up today.
Forward cash projection
Overlays grant payment schedules against upcoming payroll dates, rent, and vendor payments. Shows the next 90 days of expected cash position — not just the current balance.
Late payment follow-up automation
When an invoice ages past 45 days, the grants manager gets an alert with the funder's contact information and the invoice details. Logged automatically when follow-up occurs.
QuickBooks Online integration
Pulls invoice, payment, and transaction data from QBO via API. No separate data entry — the cash flow view updates as your bookkeeper works in QuickBooks normally.
Payroll collision alerts
When projected cash falls below payroll obligation in a 14-day window, the ED and finance director get an alert. Early enough to arrange a bridge or accelerate follow-up with funders.
Funder payment history
Tracks how long each funder typically takes to pay by invoice type. Informs future cash projections with historical accuracy — not just the contract's stated payment terms.
Related issues
Managing cash flow in Excel while waiting 60 days for reimbursements?
Book a free 30-minute call. Tell me what your current cash visibility looks like and which funder payment delays create the most pressure. Depending on the complexity of your grant portfolio, a typical build runs 4–6 weeks — I'll show you what the dashboard could look like and scope it to your situation.
Book a free discovery call