Nonprofit organizations must track donor-restricted funds, fulfill reporting requirements, and stay compliant to maintain tax-exempt status. Unfortunately, these accounting challenges can overwhelm nonprofits—especially those with limited staff and resources.
This is where outsourced accountants come into play. From streamlining bookkeeping to ensuring you maintain compliance, here’s why nonprofits should consider outsourcing their accounting needs.
Deep Specialization
Most nonprofits operate under razor-thin margins. To manage costs, they typically hire fewer full-time staff than for-profit businesses, which means employees often fulfill multiple roles. In such cases, accounting duties may be handled by staff members who do not specialize in accounting.
This is where costly mistakes happen. Our outsourced accountants have decades of nonprofit accounting experience and take a hands-on approach to your finances, ensuring you:
- Maintain crystal-clear financial statements
- Meet deadlines
- Streamline inefficient accounting processes
- And comply with the latest accounting standards
Cost-Effective Expertise
Outsourcing accounting also saves nonprofit organizations money. Because outsourced services can be scaled up or down, nonprofits do not need to commit to a full-time salary employee. Outsourcing also eliminates many employee-related expenses, including health insurance, paid time off, sick leave, and additional payroll taxes.
Compliance Assurance
Nonprofits must navigate a complex regulatory web with strict reporting requirements and constantly changing rules. Keeping up with these demands is tricky—particularly for cash-strapped organizations with limited staffing.
Our outsourced accountants and fractional CFOs specialize in nonprofit regulations and stay current with evolving standards. We take a proactive approach, minimizing the risk of penalties and allowing your team to focus on their core responsibilities.
Tax-Ready Financials
Many people think tax season begins and ends in April. Not us.
We know that nonprofit tax returns are complicated. While we do not do tax prep work, our outsourced accountants will do all the heavy lifting to ensure your books are balanced and audit-ready. And when tax season rolls around, we’ll even work with your tax prep professional to streamline the process.
Simplified Tracking
Nonprofits rely on grants and donations. To track them, nonprofits need a system for categorizing funds, tracking grant application statuses, and generating reports. Otherwise, they risk misallocating funds, missing deadlines, or eroding donor trust.
Our outsourced accountants excel at setting up airtight tracking systems that ensure your nonprofit stays transparent, maintains its tax-exempt status, and is empowered to make informed financial decisions.
Fresh Outside Perspective
While there are certainly advantages to having an in-house accounting team, experience has shown us that sometimes, an outside perspective is exactly what nonprofits need.
As outsiders, we often spot inefficiencies or missed opportunities that insiders can’t simply because they are too close to the day-to-day operations. Our outside perspective can be invaluable. Plus, we do not take a one-size-fits-all approach. The advantage of working with a team like ours is that we not only have significant nonprofit experience but also take the time to understand your unique needs and goals.
Financial Clarity Starts Right Here, Right Now
Since 2011, we’ve been helping nonprofits achieve the financial clarity they need to succeed. From bookkeeping and payroll to audit prep and fractional CFO services, our team has the knowledge and experience you need to take control of your finances and chart a clear path forward. Ready to get started? Contact us today!
