Bookkeeping is the process of noting, analyzing, and interpreting an individual’s financial transactions or business. The nonprofit organization oversees many organizations that generate a large amount of annual revenue and provide full-time jobs to over a million people.
The role of an executive director is to handle the budget, carry out accounting and fundraising tasks. Organizing and managing nonprofit finances plays a significant role in good administration in keeping an eye on the organization’s finances and paving its future.
Navigating a wide range of accounting and financing tasks faced by nonprofit organizations without assistance leads to dissipated resources, risk, and errors in financial decisions. Bookkeeping comes into action here to keep track of everything. Here are the key reasons why you should opt for professional bookkeeping outsourcing services.
1. Freeing up valuable resources
By giving bookkeeping work to a professional bookkeeping outsourcing services agency, you can free up your money and time for the organization. They organize and manage your bookkeeping process. The nonprofit organizations need to create a yearly budget meanwhile track and report requirements like
- Expenses for fundraising, program services, management activities, etc.
- Income from sponsorships, donations, etc.
Many directors work with limited funds or take a disorganized approach to their daily bookkeeping tasks. It leads to poor management of records.
The bookkeeping outsourcing services include tracking of organization’s income and expenditure. They even
- Optimize the bookkeeping process to check their efficiency and consistency.
- Synthesize the bank accounts
- Provide error-free reports that help you monitor financial activities
- Help the board make better choices for the organizations
These activities performed by the bookkeeping outsourcing service agency create more time for you to work on your mission.
2. Offset risk
Working with a nonprofit bookkeeping outsourcing service expert enables you to check on the organization’s accounting process and the central problem fields. Outsourcing allows you to automate many bookkeeping duties, which helps reduce data entry and errors while processing. Working with a bookkeeping outsourcing service that supports advanced cloud-based practices lets you store or regain data of your finances with trusted data security.
A nonprofit must be accountable to the public, committee, and board regarding monetary management. In other words, it must be transparent. In terms of the organization’s financial health, the decisions and actions taken by the directors on behalf of the organization must be the biggest problems faced by nonprofit management seniors in bookkeeping are:
- Tracking all the revenue sources and proving time to time that it is being used only for the company’s mission.
- Ensuring that the funds are spent in favor of the funder or donor.
- Satisfying legitimate obligations like handing over payroll deductions to the CRA
- Executing internal controls that hinder fraudulent transactions inside the organization.
If you are under the burden of keeping your nonprofit answerable to strict CRA regulations, persistence and thoroughness must be maintained. The nonprofit bookkeeping outsourcing service professionals know all about the standards that apply to your organization and are well versed in the time to time reporting financial regulations on your organization.
4. Making better choices
By putting the precise information on finances before your board members, they can use the financial insights to make a budget and even decisions. Keeping the custom financial reports ready by the end of every month by a bookkeeping outsourcing service with proven nonprofit experience can
- Make your team be updated with the revenues and expenses
- Assisting board members in making budgets
- Give you clarity on the programs which are more financially viable
- Guide the committee with data that can be used to spawn more and more funding effectively.
By outsourcing the nonprofit’s bookkeeping and back-office functions, you will be able to collaborate with your stakeholders, make new partnerships, and be involved in fundraising activities. It will strengthen the organization with financial insights that are more effective.
Bookkeeping outsourcing services help your organization grow rapidly and consistently. It helps you build a robust organization. It won’t let you lose your projects and clients.
Bookkeeping outsourcing service helps your organization reduce the risk of losing staff suddenly. It even improves productivity and work quality and provides your clients with better quality service. The bookkeeping workload is never stagnant. Through outsourcing, you can quickly increase or cut staffing based on your business requirements.