Nonprofits often struggle deciding on how to devote the resources necessary to properly manage the organization’s finances while still delivering and focusing on their mission. While “keeping the books” is one small part of management’s responsibility, implementing appropriate accounting and financial controls, processes and reporting can prove more challenging to organizations, regardless of size. Leaders must often focus on other important organizational and strategic issues and accounting can quickly get forgotten. Unfortunately, accurate and timely financial reporting and forecasting is a critical aspect to the continued success of every organization.
Outsourcing to a qualified outsourced accounting firm offers numerous benefits over handling an organization’s accounting in-house. The following are just a few of the most important reasons organizations should consider hiring an outsourced accounting firm in 2019.
Frees Up Management Time
It takes a lot of time and expertise to manage an organization’s finances. This is especially true for nonprofit organizations that struggle to find room in the budget for full time accounting resources. When you hire an outsourced accounting firm, you have the peace of mind that you have retained experts whose full time focus is your organization’s accounting and financial needs. Additionally, the time devoted to your organization’s accounting by an outsourced firm is time that the organization’s management is free to spend focusing on the nonprofit’s mission and its stakeholders.
Cost Effective Use of Resources
Outsourced accounting firms can ideally match the strengths of their staff with the needs of the organization by providing fractional assistance at various levels of experience and expertise. Often nonprofits don’t need a full-time CFO resource. However, they are often locked into hiring a full-time resource at that level. Outsourced accounting firms can provide resources whose experience and expertise precisely meet the needs of an organization. The nonprofit is only paying for the hours it needs rather than a full-time salary. Thus outsourced accounting firms can provide a much more cost effective use of a nonprofits limited resources.
Provides Professional Oversight
Outsourcing provides third party oversight over your organization’s finances. One of the biggest risks to a short-staffed organization is the segregation of accounting and financial processes. Outsourcing some or all of your accounting function to a firm provides the ability to easily segregate the most critical accounting functions that might otherwise prove challenging to smaller organizations. Outsourced accountants are experts in their field. When you choose an outsourced accounting firm that also has a specialized market focus, your increase the benefit of receiving premier accounting consulting with the particular industry knowledge and insight. Experienced service providers can identify areas for improvement within an organization and implement industry best practices.
Provides Peace of Mind
Not knowing where your organization stands financially can be stressful. With outsourced accounting, you always know your finances are in order. Outsourced accountants provide regular financial reporting and can assist with cash management. This provides peace of mind and enables leaders to make smart, informed decisions.
Is It Time to Outsource?
Accurate accounting and financial reporting is crucial to the growth and success of nonprofit organizations. Outsourcing arrangements can work well for any sized organization. However, moving to an outsourced firm often makes the most sense when accounting is not your core competency, when you want to help lower overall operational costs and when you want to access talent and resources that are not available on staff.
Vault Consulting offers outsourced accounting and financial management for nonprofits and associations. Our team works directly with your organization to evaluate your needs. This allows us to provide a customized solution. Please contact us for more information about our outsourced accounting services.
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