For many not-for-profit organisations, January brings a rare window of calm.
The rush of year-end activities has passed, funding cycles are stabilising, and many teams are easing back into the rhythm of the new year.
This makes January the perfect time for an NFP Financial Health Check. A strategic review that strengthens your organisation’s finances, governance, and long-term sustainability.
January allows for:
1. A Clean Slate for the Year Ahead
An ideal time to step back and ask the big questions:
- Are your finances structured in a way that supports your mission?
- Are your accounting processes efficient and compliant?
- Is your reporting aligned with what your board and donors need?
2. Strengthen ACNC Compliance Before It Becomes Urgent
Although ACNC Annual Information Statements and financial reporting deadlines vary by organisation, many NFPs wait until the second half of the year to check compliance readiness.
January provides the breathing room to get ahead.
A financial health check helps you review:
- Governance policies and board financial responsibilities
- ACNC reporting requirements
- Grant acquittal deadlines
- Audit preparation status
- Documentation and evidence retention
Proactive compliance doesn’t just reduce stress, it builds credibility with funders, staff, management, donors, volunteers, and the community.
3. Better Visibility Over Cash Flow for the Year
Cash flow is one of the biggest challenges facing not-for-profits, particularly those managing:
- Seasonal donations
- Multi-year grants
- Restricted funding
- Program expansion
- Staffing increases
Hopscotch Accounting’s January reviews often uncover opportunities to:
- Re-forecast income based on previous years’ trends
- Identify funding gaps early
- Adjust spending priorities
- Improve grant tracking
- Separate restricted and unrestricted funds more clearly
A strong cash flow plan in January gives your leadership team confidence and helps avoid mid-year surprises.
4. Align the Board & Finance Team for Stronger Governance
January board meetings tend to be more strategic and forward-focused. That makes them the ideal time to present a financial health check summary.
Clear, reliable financial insights empower boards to:
- Make better decisions
- Set more realistic financial goals
- Review risk exposure
- Support operational teams effectively
- Strengthen governance practices
A January review also helps ensure the board understands your organisation’s true financial position, not just last year’s performance.
5. Prepare Early for Mid-Year Audits or Reviews
For many NFPs, audit readiness doesn’t begin until the quarter before the audit is due. This often leads to pressure, missing documents, and avoidable delays.
Completing a financial health check in January means:
- Systems are already aligned with audit expectations
- Grant evidence is organised
- Reconciliations are up to date
- Policies and procedures are refreshed
- Supporting documents are easy to access
When your mid-year audit arrives, it becomes a smooth process rather than a scramble.
6. Improve Operational Efficiency for the Year Ahead
A well-executed financial health check often uncovers inefficiencies such as:
- Manual processes that could be automated
- Outdated accounting software
- Duplicate tasks across teams
- Reports that take too long to prepare
- Payroll or superannuation errors
- Ineffective cost coding
January is the perfect time to implement improvements before the year becomes busy.
Hopscotch Accounting frequently helps NFPs streamline:
- Xero setups and chart of accounts
- Grant tracking systems
- Payroll workflows
- Budgeting and forecasting processes
Even small improvements can save hours every month, time that can be redirected back into mission-focused work.
7. Build a Strong Foundation for Funding Success
Funders increasingly expect transparency, accountability, and alignment between financial reporting and program outcomes.
A January financial health check strengthens your organisation’s credibility by ensuring:
- Your finances tell a clear story
- Your organisation is audit-ready early
- Funding acquittals are accurately tracked
- Your budgeting reflects program delivery
- Your reporting supports grant applications
Organisations with clean, clear finances are far more likely to secure competitive grants and renew existing funding.
How Hopscotch Accounting Supports NFPs.
Based in Sutherland, NSW, Hopscotch Accounting specialises in not-for-profit financial management. We can assist you in January with a financial health check, which will focus on clear, actionable snapshot of your financial position:
Our reviews typically include:
- Financial systems assessment
- Cash flow and budgeting review
- Governance and ACNC compliance check
- Grant tracking evaluation
- Risk and internal control review
- Audit readiness assessment
- Recommendations for efficiency and transparency
Start 2026 With Confidence
January doesn’t just mark the beginning of a new year, it’s an opportunity to reset, refine, and rebuild your not-for-profit’s financial foundation.
A proactive financial health check now can save your organisation time, reduce risks, strengthen compliance, and set you up for a more successful and sustainable 2026.If your NFP is ready to make this year your strongest yet, Hopscotch Accounting is here to help.
