While budget constraints are a reality, offering competitive compensation can attract higher-quality candidates. Ensure that your salary and benefits package is in line with industry standards to attract and retain top talent. A 360 solution to find, hire, onboard, pay, and retain top Latin American talent. Discover best practice to hire or outsource for nonprofit accounting how much of your budget you could unlock by hiring top LatAm talent to grow and fund other projects. Learn how to get donations for a fundraiser and raise more money for your nonprofit.
Access to specialized expertise
Your relationship with the board of directors is one of the trickiest challenges you’ll face as a nonprofit leader. If you have updated financials, you may be able to handle this yourself (it’s not that hard). First, you’ll need updated and accurate (generally audited or reviewed) financials to secure the grant.
- Rather than try to attract experienced accounting professionals as internal employees, you can tap that expertise more easily by outsourcing.
- The approach proved successful, and within months the firm had offshored enough work to India to keep three people there busy.
- If you’re not tracking your payroll by job function, you could be underutilizing your grant funds.
- Let’s uncover the compelling reasons why nonprofits should consider outsourcing their accounting functions.
- The outcome is a clear view of how donations are being used to share with an accountant, board members, or other stakeholders.
Nonprofit Financial Statements
- If your organization is audited, the report confirms the accuracy of your financial records.
- Documenting your long-term strategy will help you see how each year’s finances move you closer or farther from your big goals.
- Nonprofits must prepare well to ensure a smooth transition to outsourced accounting.
While many firms may offer services to nonprofits as a part of their platform, Jitasa stands out because their team dedicates themselves to fund accounting and helping nonprofits succeed financially. Nonprofits may be handling any number of grants, donations and sponsorships at any one time. Separating the funds is also a requirement of nonprofit accounting principles to avoid confusion and to remain legal.
The audit process is seamless, the day-to-day management spot on, and the grant reporting/support is exceptional. With the help of our Hypercare model—designed to provide tailored onboarding and continuous support—Servantex achieved a 69% reduction in labor costs while enhancing overall operational efficiency. Their offshore team became more than just support staff—they evolved into a fully integrated extension of the U.S. workforce.
In today’s fast-paced and unpredictable business landscape, Chief Financial Officers (CFOs) face numerous challenges. There is also added accountability and a level of reporting that can come from using a third party provider, which is particularly valued by the Board of Directors. If you’re interested in outsourcing your accounting, feel free to schedule a meeting with us, and we’d be happy to help.
Outsourced Nonprofit Accounting Firm #6: Profit Matters
Perhaps the most compelling reason to outsource accounting is that it enables nonprofit leaders and staff to stay focused on their mission. Managing financial complexities internally can be overwhelming and time-consuming, diverting attention away from strategic planning, fundraising, and program execution. Outsourcing allows nonprofits to delegate financial tasks to trusted professionals while concentrating on making a meaningful impact in their communities. Non-profit organizations operate under a unique set of financial regulations and accounting standards, making it imperative to hire an accountant who is well-versed in non-profit accounting. Whether you decide to hire an outsourced accountant or bring an accountant onto your staff, here are essential considerations and tips to ensure you find the right fit for your non-profit. Outsourced accounting providers ensure accurate and timely preparation of financial statements, helping nonprofits maintain transparency and compliance with donor and regulatory requirements.
Discover the caliber of talent and cost savings you can unlock
Outsourcing to accounting firms that specialize in the nonprofit domain rectifies this challenge. Specialists employed by such firms remain updated through their engagement with multiple clients and regular training programs. This eases the governance burden on nonprofits and lowers risks of regulatory penalties or loss of public trust due to inadvertent non-compliance. Non-profits are governed by distinct accounting standards, such as the Financial Accounting Standards Board (FASB) guidelines for non-profits. It is crucial that the accountant is well-versed in these standards to ensure compliance and accurate financial reporting. A significant majority of businesses (over 68%) leverage outsourcing to enhance efficiency, cut expenses, and boost profitability.
Software Proficiency
Start by creating and documenting a repeatable process and schedule for entering all your data. Following a process may save you when you’ve got part-time help, volunteers, or even employee turnover (it happens). This allows nonprofit team members to focus more on their own work while avoiding potential disruptions caused by turnover. These insightful reports can then be used by management and their Board of Directors to make important decisions with a greater sense of confidence.
Verify the provider’s reputation and ask for references from other nonprofit clients. Major donors, corporate sponsors, and recurring donors can all be excellent sources of reliable funding. These gifts create a more significant impact that you can account for in your financial plans, but only if donor retention is top of mind. It’s also important to create a degree of separation between your day-to-day operations and your board members.
Outsourcing specialized functions can help nonprofits control costs, update processes, and bring new ideas to the table that facilitate growth. Nonprofits must formally engage the selected accounting firm by developing terms of engagement or services agreement. This legal contract specifies the scope of each service, timelines, responsibilities of both parties, expected turnaround times, budgets, and payment schedules.