Many non-profit organizations don’t have resources to spare and one way to cut those expenses is to outsource their accounting needs to an outside company. Here are 5 tips for non-profits considering this option:
Set Up Your Processes Properly
If you’re organization is new, you’ll want counsel from a professional service to make sure your processes are set up correctly from the beginning. There are legal requirements to keep your non-profit status, and they can help you set up to stay in compliance.
Don’t Wait To Fix Problems
Along with legal compliance, untidy accounting for a non-profit can damage the trust of your patrons and donors. In accounting, attention to details and keeping data up-to-date is critical.
Your outsourced accounting company can only help where they know you need it. You might have questions about daily, weekly, or monthly reporting and entries. Keep an open line of communication with your accountant and make sure you are involved in reporting. You deal with your organization daily, while they may not.
Save Money Where You Can
There are many duties and services that fall under the umbrella of accounting and bookkeeping. While virtual or outsourced accounting might be less expensive than those onsite, simple jobs like data entry can often be done by a properly trained non-accounting worker or volunteer.
Outsource Tax Reports & Filing
The most important jobs that should be outsourced, as opposed to done inhouse by non-profits, is tax filing and reporting. Your financial reporting needs to be done correctly or you risk losing your donors and your tax-free status. Cleaning up after mistakes can be arduous and expensive.
We love working with non-profit organizations. Contact us to learn about how we can help you improve your data tracking and financial reporting.