What is a common issue when multiple committees in a non-profit have individual accounts?

When multiple committees within a non-profit organization have individual accounts, a frequent challenge that arises is the difficulty in tracking shared expenses. Each committee may manage its own budget and financial records, which can lead to confusion when expenses are shared among committees or when collaborative projects are initiated.

For instance, if several committees are working on a common project but managing their funds separately, reconciling expenses and understanding the total cost becomes more complex. This fragmentation can result in miscommunication, duplicated efforts, or even discrepancies when it comes to financial reporting.

By centralizing accounts or having a more unified financial tracking system, organizations can improve their ability to monitor and allocate shared resources effectively, streamlining the financial management process and enhancing overall operational efficiency.