11 Jun Outsourcing accountancy as a non-profit organisation
Managing a non-profit organisation is a challenge. Not only do executives need to ensure the organisation is making progress towards achieving their mission, but they also need to comply with growing regulatory requirements, balance the books and leverage resources effectively, amongst many other things. Yet, most non-profit organisations do not have the resources and skills available to achieve this in-house, which is why outsourcing areas of your entity may prove to be beneficial. This is especially true when it comes to accounting and bookkeeping.
What are the key areas that outside accounting firms can assist with?
• Funder reporting
• Board reporting
• Creating financial reports
• Budget preparation assistance
• Audit preparation
• Preparation of thank you letters and donation receipts
• Managing payroll
• General bookkeeping
• Strategic financial planning
Can non-profit organisations afford to outsource?
A lot of non-profit organisations worry that they will not be able to afford to cover the cost of outsourcing. After all, they don’t generate the profit to cover such an expense. However, one of the key benefits associated with outsourcing your accounting commitments is that you will reduce expenditure. It will require an initial outlay, but in the long-run, it will save you a considerable amount of money. This is because you won’t need to hire anyone in-house to take care of your bookkeeping, and so you won’t experience the associated employee expenses, from paid leave to payroll taxes. Not only this, but an expert accounting firm will be able to ensure your organisation is running as financially efficient as possible. They will alert you to tax breaks that you may not be taking advantage of at present.
Benefits of outsourcing your accounting
There are many benefits non-profit organisations can gain by outsourcing their accountancy. As mentioned above, you can reduce your long-term operating and capital costs, however, there are many other advantages to consider too. You will shift liability, for example, with payroll and you can improve your organisation’s ability to focus on your mission. Instead of being bogged down with figures and paperwork, you can concentrate all of your efforts on your cause. By outsourcing to a quality accounting firm, you will also gain access to insights, skills and technology not otherwise affordable or available, as well as improving management flexibility and effectiveness, enhancing organisational impact and boosting revenue.
As you can see, there are many reasons to consider outsourcing accountancy as a non-profit organisation. For more information, please do not hesitate to get in touch with SQK Accountancy today.