Back to main

Blog: Top 4 Reasons Tax-Exempt Organizations Should Outsource Accounting

Top 4 Reasons Tax-Exempt Organizations Should Outsource Accounting

There is no one-size-fits-all type of association, professional society, or not-for-profit organization. Entities in the tax-exempt space come in different shapes and sizes, complete with different departments, resources, and personnel. One variable that maintains its relevance in every entity is accounting. It is a function that permeates throughout any organization, helping to tie multi-tiered budgets to mission-oriented strategy all the way down to processing accounts payable and accounts receivable (AR/AP).

Because it is a layered and multidimensional function, accounting requires skilled workers with the aptitude and experience to complete organizational needs. For the tax-exempt community, it is especially beneficial to work with a team that is scalable, specialized, supportive, and privy to modern technological solutions.

Scalability

There are many unique scenarios that Vault is accustomed to undertaking. Senior Manager, Jessie Bradshaw names a few, “we have clients come to us for a variety of reasons: special projects for a couple of months, a 6-month-contract to help implement new strategies, or to assist with transitions between upper-level management.”

Other instances could be when an organization that already has an AP/AR team in place needs higher-level insight on financial planning, or an organization with a chief financial officer who really needs the support of an accounting manager to help maintain internal controls, produce financial statements, reconcile accounts, and keep the accounting department running smoothly.

We are able to see the big picture and communicate that to clients, while not losing an understanding of the details.

Jamie Saylor, Principal & CEO

Bradshaw recollects how some client engagements started with something small like payroll processing and later turned into partnerships to reach strategic objectives.

Although it is not uncommon that some organizations only need assistance with special projects, such as integrating payroll to streamlined platforms or assisting with audit preparation, most Vault clients leverage the executive-level financial services available to them.

Organizations are encouraged to discuss their needs on the frontend. “That’s part of our engagement and proposal process. We are meeting with clients, and we have open conversations about how things are functioning, what systems are in place, along with addressing efficiencies and inefficiencies,” highlights Bradshaw.

Specialization

Before making recommendations, Vault undertakes a robust contextual understanding of an organization’s financial situation. Vault observes and learns a great deal during the first few weeks of a new engagement. Thereafter, they sit with organizational leaders to make suggestions based on their findings and industry expertise.

The value is being able to pool in how financial operations work in multiple types of organizations. We have a breadth of experience that can be applied to new partnerships.

Wes Tomer, Principal & Managing Director

The executive team’s experience goes beyond the client roster they have generated in the past five years as Vault. Managing directors have functioned in executive roles for multiple clients within the tax-exempt community for 20 plus years.

Supportive

Having such a deep-rooted relationship with the tax-exempt community, Vaulters are particularly empathetic to client missions. “Budgeting for nonprofits is important because many of them are using contributions that are restrictive, and/or federal funds that need to be precisely accounted for. They have to budget and track funds to make sure they’re using the funds appropriately. We help with their budgeting, projecting, and accounting to help support their missions. We keep them on target,” shares Bradshaw.

We want to see organizations succeed—and help them see the information that we provide as a commodity that they can use to make decisions that advance their missions.

Meredith Vogt, Principal & Managing Director

Organizations also lean on Vaulters to apply their technical expertise towards gathering the appropriate data for informational returns (i.e. 990s) and relating technical accounting jargon to professionals in multiple industries. The Vault team works in tandem with organizations to get their boards up to speed with financials. Organizational leaders can sit side-by-side with their consultants to get a vivid picture behind a projection and report back to their board of directors with confidence. Likewise—Vault can present those reports directly to BODs.

Solutions

The Vault staff is up-to-speed with cutting edge technological advances on the accounting front that streamline accounting processes and house information originally stored on multiple platforms.

We embrace technology to create a more efficient operating environment for our team and our clients.

Amy Horner, Chief Operating Officer

The outsourced accounting team is well-versed on budgeting tools, apps, cloud-based online disbursement systems, and more. The Vault team leverages their IT staff to help consultants migrate organizations’ data and transition accounting functions to remote-capable electronic processes.

Want to Learn More?

Contact us @ Info@vaultconsulting.com