Nonprofit organizations must often look for creative ways to optimize resources and cut costs, particularly in today's challenging economy. One potential way in which many nonprofits are doing that is by outsourcing more roles, including those in accounting.
For nonprofits needing to free up funding without sacrificing the quality of their accounting services, turning to a third-party accounting solution may be the answer—and for good reason.
Hiring full-time accounting staff on-site can be costly, especially when taking into consideration the salary and benefits that need to be paid out for these team members. Nonprofit organizations can save a lot of money by turning to a third-party accounting solution, where services can be paid for à la carte and without the need for salaries or competitive benefits packages. Meanwhile, valuable space within the physical office can also be freed up and used for other purposes.
From a time perspective, this also means that team members (such as human resources professionals) can spend less time trying to fill in accounting gaps and more time focusing on their own important work.
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Nonprofit organizations operating in certain industries often face a responsibility to comply with strict regulatory compliance laws and standards. Failure to do so could result in hefty fines, penalties and even legal trouble that could affect the mission of the organization itself. Often times, it is the responsibility of accounting professionals to ensure that nonprofit organizations are operating within industry regulations, AND Grant restrictions—but not all accounting professionals specialize in compliance across all industries.
This is where turning to an outsourced accounting service can help nonprofits not only save money but also enjoy the additional peace of mind and regulatory compliance expertise that comes with these services. Whether the nonprofit operates within healthcare, finance or any other industry, it is possible to find accounting professionals who know the ins and outs of industry compliance requirements.
Accountants play an important role in forging the long-term success of a nonprofit by providing detailed financial and budget to actual reports that can then be used to make important decisions about the organization's direction and future.
By making the switch to an outsourced accounting team, nonprofits can have access to a team of experienced and knowledgeable accountants who know how to apply their unique understanding of nonprofit operations to generate and deliver financial reports and statements. These insightful reports can then be used by management and their Board of Directors to make important decisions with a greater sense of confidence.
Finding and retaining quality accountants is something that many nonprofit organizations struggle with. Unfortunately, high turnover rates can result in disruptions that affect the growth and success of the organization—especially as team members from other departments are forced to fill in accounting gaps until a new person can be hired.
By making the switch to an outsourced accounting firm, on the other hand, nonprofits can enjoy the stability and peace of mind that comes with always having access to experienced and knowledgeable accounting professionals. This allows nonprofit team members to focus more on their own work while avoiding potential disruptions caused by turnover.
Accounting professionals who work with these third-party services can provide nonprofit organizations with expert advice, financial reporting and support to help these organizations achieve their short- and long-term goals. Often, these accountants have specific experience working directly with nonprofits, so they understand the nuances that go into their accounting tasks and how to help them succeed.
The right third-party accounting platform will also have access to the latest technology and advancements that can take a nonprofit organization's success to the next level. Specifically, the use of artificial intelligence (AI), machine learning and other industry innovations can free up even more valuable time while ensuring that an organization's accounting tasks are handled as effectively and accurately as possible.
For nonprofit organizations looking to free up valuable time, save money and leverage the latest technologies to their advantage, outsourcing accounting tasks can be an excellent choice. The key, of course, is selecting a firm with outsourced accounting solutions that truly fit the unique needs and budget of the organization. Ideally, this also means choosing a firm that has specific experience supporting nonprofits with their complex accounting needs.
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