Bookkeeping and accounting functions are often overlooked at small – midsized not-for-profits. The importance of these functions is buried in the day to day to do-list. If this sounds familiar, you are in luck. Outsourced accounting for not-for-profit organizations can help save time and money, giving you the freedom to help your organization thrive.
Do you regularly check your organizations financial health? Do you know if you have enough to pay your bills? Do you have a budget for the next 12 months? Do you trust what your financial reports say? If any of these questions make you feel uneasy it may be a sign you are ready to outsource your bookkeeping and accounting functions.
Below are 5 reasons a not-for-profit organization should invest in outsourced accounting for their organization:
- Outsourced Accounting for Not-for-Profit Organizations Increases Bookkeeping Accuracy.
Often, staff working at a not-for-profit have many roles and responsibilities. Their main skill set may not be bookkeeping. However, due to a strain on resources they are put into a bookkeeping role. When dealing with an organization’s finances accuracy is extremely important. By outsourcing your bookkeeping you are now working with a team of dedicated and trained professionals who will ensure bookkeeping accuracy and timeliness, balanced financials, appropriate designation of funds, and many other minute details that go into well-established, and accurate bookkeeping process and procedures.
- Less Turnover.
Not-for-profit staff can be overwhelmed by their never ending to do list. As resources for many not-for-profits are often limited, staff takes on a lot of roles and responsibilities. By outsourcing your accounting, you are taking the pressure of managing an organization’s finances off of a staff member. Time is now available for this staff member to work in areas where they will truly excel, that they are interested in, and that will help the organization to succeed.
- Improve Processes & Procedures to Prevent Fraud.
According to the Association of Certified Fraud Examiners (ACFE) published in 2016, over 30% of fraud cases occur in organizations with fewer than 100 employees, and on average small organizations had approximately 49% fewer controls in place to prevent fraud. Outsourced accountants have deep expertise, and understand how an organization’s financial operations should be set-up. They understand the importance, and the process, of implementing strong internal controls. They bring an impartial outside perspective to an organization, and can help reduce the risk of fraud.
- Save Time & Be Consistent.
Consistency in itself is a huge time saver. Often, not-for-profits have volunteers or inexperienced staff helping with the bookkeeping. These people come and go, which means constant training of new staff, and a big chunk of time. You also won’t be scrambling trying to fill a role, especially during tight deadlines. Trying to quickly fill a role can also lead to many costly mistakes. Let’s not forget the huge administrative time savings. Opening up time for employees to focus on achieving the mission of the organization.
- A Great Steward of Resources, Making Donors More Confident.
Accurate bookkeeping allows for better reporting to understand giving trends, donor retention, and the ability to thank people appropriately. This also gives supporters assurance that their donations are being used appropriately, and allows organizations to meet certain grant requirements, plus plan for future growth.
Finding the right firm, and then ultimately outsourcing your accounting function, can feel like another item on a never ending to do list. However, by taking the time now, and thinking of the future cost and time savings, we are confident that outsourcing your accounting functions will lead to well-established financial and overall operations. In turn, helping your organization have the time and resources to spread its mission.