Though it's understood that accurate, timely financial reporting is a key aspect of financial best practices for nonprofits, why is it so important? It’s important because stakeholders rely on the financial reporting that's provided to them to make vital decisions. Bad information leads to bad decisions. Similarly, accurate information is needed when applying for grants, when complying with funder reporting requirements, to stay within loan covenants and to manage your organization effectively. In this article, we'll discuss financial best practices for nonprofit organizations, specifically financial reporting, and why it's so vital to do so.