Tag Archive for: services

When to Look for Expert Nonprofit Accounting Services

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When you are a nonprofit organization, finding expert nonprofit accounting services may not be high on your to-do list. Surely there are more important things to focus on instead of focusing on accounting, especially because your organization’s goal is not to make more profit?

In reality, nonprofit organizations can benefit a lot from nonprofit accounting. This article will go through the scenarios when you would need to look for expert nonprofit accounting services.

1. You Need to Consider COVID-19 Implications

The pandemic has resulted in a lot of changing regulations and greater overall uncertainty regarding the finances and accounting requirements of a firm. The Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was passed in March 2020, affects nonprofits as well.

For organizations with less than 500 employees, you can have access to small business administration (SBA) loans or loan forgiveness. You can also access emergency economic injury disaster loans (EIDL) grants and employee retention credits.

For larger organizations with more than 500 employees, you can only access employee retention credits and EIDL grants.

The eligibility criteria and the need to report benefits from the CARES Act will mean that you can benefit from having expert accounting services providing you with greater insight. They are a lot more knowledgeable on how the CARES Act will change what you report on your statements, and they will ensure that your financial reports will accurately reflect the adjustments while complying with regulations.

At the same time, other COVID-19 considerations can cause an accounting headache for your nonprofit. For instance, you may experience modifications in the number of liabilities you have or will need some guidance with the ongoing financial concerns of your nonprofit.

The COVID-19 pandemic is an unprecedented situation, and responding to accounting rule changes can be a challenge for everyone. By relying on an accounting service, you can rest well knowing that your audits and bookkeeping are all up to par.

2. You Find it Hard to Manage Cash Flow

Managing cash flow in a nonprofit can be more difficult or unstructured than a typical company. At the same time, it’s an important thing to consider, because you need that money to keep your organization going. You will therefore be able to benefit from nonprofit accounting, which aims to both manage and improve your cash flow.

A common challenge that nonprofits face is that their greatest cash flow only happens in certain seasons or months in a year, which means they will have to allocate this money throughout the less profitable months. By taking the time to properly plan your cash flow and ensure your balances will remain positive, you will need to spend a lot of time evaluating your finances and your budget.

An accounting service can analyze the existing financial information to understand where you get most of your revenues and benefits, and whether this is enough to sustain operations for a certain period of time. They can also pinpoint risk areas, where you may be spending too much or where you may be liable to losing a lot of money.

The information they gather will allow you to make well-informed decisions regarding your cash flow.

3. You Need Better Staffing and Payroll Strategies

Payroll management is a headache for any company, and it is a particularly challenging aspect of running operations for a nonprofit. Nonprofits are usually motivated by passion, so matters of staffing changes or payroll requirements can be a bit awkward to focus on. What happens, for instance, if there are some incredibly loyal staffers who are also becoming financially burdensome?

An accounting service can provide some insight into this area by identifying cost-effective strategies and the financial impact of having a certain amount of staff members. While it may not be the easiest thing to consider, expert accounting services will be able to pinpoint areas where you will have to cut costs to ensure that your organization can succeed in its endeavors.

At the same time, you will benefit from speaking with an accountant before hiring someone new so that you can understand how this will impact your financial position in the long run.

4. You Have Difficulty Tracking Revenues

As a nonprofit organization, the way you receive revenues will be very different from the orthodox method of selling products for profit. Your revenue will come from donations and grants more than anything else. The accounting process will be different for you, but it is just as important so that you can manage cash flow and understand your company’s financial position.

By having nonprofit accounting services helping you out, they will be able to maintain accurate and updated financial records which track all the revenues you receive. This ensures that you have a sound knowledge of how well your company is doing, and also prevents the possibility of you presenting inaccurate data in your financial reports.

Tracking this information will also be important in ensuring you continue receiving grants in the future.

Situations When You Need Nonprofit Accounting Services

As a nonprofit, you can benefit a lot from accessing nonprofit accounting services. Your accounting needs may be unique, and you may not be profit-motivated, but managing your finances is essential to ensure your organization survives.

Nonprofit accounting services can provide assistance if you need help with COVID-19 considerations, if you find it hard to manage cash flow, if you need better staffing strategies or if you have difficulty in tracking your revenues.

Contact us today for expert accounting services for nonprofits.

How Nonprofit Accounting Services Can Help You Succeed

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Did you start your nonprofit because you love number-crunching?

Or was it because you have a passion for helping those in need and serving your community?

Most nonprofit directors wish they could focus on relationships, not finances. However, professional accounting help can seem intimidating at first. How do you know when it’s time to transition to professional accounting?

Are you wondering whether nonprofit accounting services are worth it? If so, this article is for you. Read on to learn how specialized accounting services can help your nonprofit succeed.

Lets You Focus on Your Nonprofit

If you founded or joined a growing nonprofit, there are likely many ways you want to give your time. You’re busy hosting galas, networking with your supporters, and doing charity work.

As your organization grows, its finances grow too. Success makes your nonprofit more complex. That means you’ll need to devote more time to financial administration.

Does the financial work take your attention away from your organization? If so, it may be time to seek professional accounting support.

After all, a professional accountant can look after the books. Only you can lead your nonprofit.

Choose the Services You Need

There are two main types of financial administration. Your organization will need both: bookkeeping and accounting.

As a nonprofit, you may be able to fill one of these roles with volunteers. You may find someone to donate their skill to cover a few of these tasks. Every nonprofit has unique resources, and unique needs as well.

That’s why nonprofit accounting services are flexible. They allow you to decide whether you need to outsource some or all of your financial management. This makes professional accounting more affordable as well.

Bookkeeping Services for Nonprofits

A bookkeeper manages the daily financial interactions of your organization, including:

  • Accepting and recording donations
  • Paying out bills
  • Managing banking deposits
  • Allocating and recording expenses
  • Executing payroll

Many nonprofits manage these tasks in-house. This works well if they don’t overwhelm your time. You may even divide these tasks among your employees for convenience.

However, as your organization grows, your daily financial tasks increase as well. You may find that they put increasing demands on you and your staff’s attention.

Don’t overlook the dangers of assigning bookkeeping to financially untrained staff. Innocent bookkeeping mistakes can reflect badly on your organization.

If your staff is spending its time on financial tasks instead of charitable work, it’s the right time to seek professional accounting services.

Accounting Services for Nonprofits

Accounting involves analyzing your organization’s financial health. It gives an in-depth look at your nonprofit’s transactions and financial history.

CPA services (chartered professional accountants) include:

  • Making sure your expenses and income stay in balance
  • Planning an annual budget
  • Analyzing expenditures
  • Preparing your year-end financial report
  • Evaluating your organization’s overall financial wellbeing

Some of these services can be conducted in-house if you have accounting-trained employees (or volunteers). However, they are time-consuming, especially for non-professionals.

A specialized accountant can administer your accounts faster and more accurately than non-professionals. You will need an independent accountant to perform your mandatory yearly audit (see more below).

Navigate Nonprofit-Specific Issues

Nonprofit organizations have different financial inner workings than businesses. They face unique financial challenges and unique financial requirements as well.

A nonprofit accounting service understands these differences. It can help your organization navigate the special financial requirements you will face.

Nonprofit Audits

Most United States nonprofits are required to have a yearly financial audit. This audit must be conducted by an independent party. Some states require proof of a financial audit before granting registered nonprofit status.

A transparent yearly audit assures donors that your nonprofit is financially responsible. It gives the stamp of integrity to a charity.

However, nonprofit finances are different than for-profit businesses. Their financial audits have to be conducted differently as well. That’s why it’s essential to choose a nonprofit auditor who can analyze your nonprofit finances.

Nonprofit Taxes and Tax Reports

Keeping track of revenue in a nonprofit is always a challenge. Nonprofit revenue streams can include:

  • Personal donations
  • Fundraising drives
  • Honoraria
  • Membership fees
  • Public grants
  • Private foundations
  • Monthly contributions

With such diverse income streams, nonprofits often struggle to account for their income.

Your organization needs to report your income accurately. Otherwise, you could incur penalizations.

You may also need professional help when it comes to registering for your 501(c)(3) tax-exempt status. Professional accounting services can help in both these areas.

Are Nonprofit Accounting Services Worth It?

Nonprofits often start very small. When is the right time to spend money on outsourcing your accounting tasks?

First, think about how much time your staff currently spends on accounting and bookkeeping.

Time is money, even in the nonprofit sphere. If your staff spends excessive time on finances, you are already spending money on accounting.

Second, think about the quality of your financial management. Do-it-yourself solutions may seem attractive in the short term. In the long term, however, inexpert bookkeeping can make your organization seem unprofessional.

Most importantly, consider the quality of your charity work. Is your staff so busy with administrative work that they don’t have time for your mission? When you spread yourself too thin to do your charity work, it’s time to get accounting support.

Accounting Services For Your Nonprofit

Your nonprofit may have started small. However, it may quickly outgrow your financial administration abilities. If your finances need more time than you can give to them, it’s time to get a professional solution.

Is your organization ready for nonprofit accounting services? Contact us today to schedule your free consultation.

Crafting an Online Presence: A Guide to Nonprofit Social Media

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More than 72% of adults in the United States have at least one social media account. These aren’t just people—they’re millions of opportunities for your nonprofit to have an impact on most of the country’s population.

If you’re looking to generate revenue for your nonprofit or spread awareness about a certain issue, you’re in need of nonprofit social media guidance.

We’re here to share exactly how to harness your nonprofit’s ability to make tangible progress using social media.

Nonprofit Social Media: The Basics

Before you even decide which platforms to use, you need to do two things:

  • Decide your goals (revenue, starting conversation, event attendance, sharing information)
  • Identify your audience

While your goals might be a combination of the above, and your audience may have a large demographic or age range, it’s important to strategize your social media before diving right in.

Below are a few categories your posts should fall into.

Hot tip: create a content schedule that posts different pieces of content. For example, you don’t want seven days in a row of community building posts. Mix it up by integrating informational posts, too!

Promoting Awareness

At the core of each nonprofit’s mission is education. Without sharing crucial information about the issue you’re combatting, your audience won’t see the value in the work you’re doing.

To get your audience engaged in the purpose of your organization, use statistics and infographics on Twitter or Instagram.

Build Community

Another way to generate a following on social media for nonprofits is to build a virtual community. Your followers want to feel like they’re a part of your movement, so let them in!

Do this by hosting live Q&As on Instagram or virtual forum meetings. Ask your followers to comment with a friend’s name or share their posts for more engagement.

LinkedIn is a great place to cultivate social networking for nonprofits, too, so try posting information there to gain a professional following. The cost of social network marketing is really just your time, so take a leap!

55% of the users who follow nonprofits on social media take action to benefit that organization. Considering some people use social media infrequently or just to share personal information, that’s a pretty great conversion rate!

Share Impact

Lastly, your followers want to know how your work is going. Be transparent and share statistics or stories with them!

Tell them how their donations are making your work possible. People respond well to stories, so get creative in how you share the information. Maybe have a volunteer of your organization or youth participant in your programming share the news!

Ideas for Nonprofit Social Media

Now that you have a sense of your goals and your audience, it’s time to get to it! Here are the top ideas for engaging social media posts that will get your nonprofit some well-deserved attention and donations.

 

Add Donation Buttons

Especially on Facebook and Instagram, it’s important to make it easy for your followers to donate to your nonprofit. Use Facebook’s charitable giving platform to show that you’re open to donations and encourage users to fundraise for you if they’re able.

Use Hashtags

Hashtags are the best way to get an organic following on social media, no matter the platform. Hashtags are like coding your content to get to the right people.

For example, if you’re sharing something for Giving Tuesday, use the #givingtuesday hashtag to show up in the feed. For more niche topics, use specific hashtags to get recognized, like #artmuseum, #omahaarts, or #donatenow.

Share Videos

If the rise of TikTok taught us anything, it’s that people love short-form videos. Some nonprofits have been taking advantage of this, and TikTok has even responded by adding certain features to support nonprofit fundraising.

Even if you’re not on TikTok, your nonprofit can still make short-form videos to educate the public on your mission.

For example, a museum can make a short video going through an exhibition or touring the building. A nonprofit focused on poverty alleviation can share statistics and footage from donation events or services they offer the community.

There are endless opportunities!

Develop a Style Guide

Using social media solidifies your brand. To build trust among your followers and any new communities, you have to have consistency across the board.

Even if you only have a couple of people managing your social media, develop a style guide with all the information someone new would need to create your content.

This could have a list of your researched hashtags, approved colors, and graphics, or resources for posting techniques. This will ensure that your voice and branding is cohesive for your followers.

Pro tip: Use a free design platform like Canva to keep everything branded and stored!

Use Stories

While many people enjoy perfectly curated content, it’s important to shake it up a bit by using stories on Twitter, Facebook, or Instagram.

Use stories to show the day in the life of an employee or use engaging stickers like polls. This allows you to learn more about your audience and create fun content!

Keep up With the Times

Even if you use a content calendar to schedule content ahead of time, make sure that you’re keeping up with your platforms in between. Like, comment, and engage with other content and accounts you follow.

This helps the algorithms in these platforms see you as a contributor to the platform in multiple ways, instead of just posting.

As the events of 2020 and early 2021 have proven, it’s crucial that you keep up with what’s happening in the world. You don’t want your content to seem insensitive, so make sure your calendar is easy to adjust and that you’re flexible in what you post.

Going All-In on Social Media

If your nonprofit social media is ready to take off, congratulations! Using social media to get people interested in your work and cultivate new donors is a huge step towards furthering your mission as an organization.

When you’re ready, use these nonprofit social media marketing tips to gain new followers and keep them inspired by your work.

If you’re looking for more information on how to make your nonprofit successful, check out the rest of our blog.

We help nonprofits strategize their operations and services to be as efficient as possible. Check out our services and contact us for more information!

The Complete Guide to Nonprofit Startup Funding

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We have created a complete guide to nonprofit startup funding. The guide is for both those looking for seed money to start a nonprofit and existing organizations that need additional funding. The topic is overwhelming to many,  but considering the best nonprofit startup funding strategies is important.

Your dream can become a reality.

Funding is a key step for any charity, but this does not happen overnight. This blog will help you learn how to raise funds for your nonprofit so you can help your organization grow.

4 Types of Funding 

We’ve covered four broad types of initial funding (or for existing nonprofits)

1. Start With Your Community for Nonprofit Startup Funding

What do nonprofits do? Nonprofits serve their communities. If you are looking for funding options, start in your community. Work colleagues, friends, and neighbors might see the potential benefits your startup could bring. Don’t be afraid to post calls for help on your social media, too!

Businesses or Community Leaders

Established businesses have cash to spare if they believe your idea can bring something positive to society and be profitable. Also, community leaders tend to be well-connected. They could assist you in reaching out to other people who will likely be interested.

You can present your startup to these leaders and ask them to become board members. This way, they can represent more active stakeholders in your organization. This action will also increase your access to individual donations. Residents are likely to trust these leaders, so they might donate more.

Other Organizations

You can also contact other organizations who provide similar services, or who would be interested in the benefit your startup will bring. For example, churches are likely to find interest in funding food relief centers or homeless shelters. Food providers might also potentially willing to donate some of their own stock to supply your nonprofit. It never hurts to ask.

Friends and Family

You may find it awkward to approach your loved ones for money. But, reaching out to them will give you a good starting ground. They are more likely to understand how passionate you are about the organization. They might be willing to share a stake in the success of your creation. Even if they don’t, they will be more open to sharing your initiative with their circle of friends, thus expanding your reach.

2. Access Grants for Nonprofit Startup Funding

As a nonprofit, you cannot finance your startup in a traditional way. You don’t get to sell items and use the additional money to uphold your organization, so accessing nonprofit grants is a great way for your startup to flourish. However, nonprofit startup grants are a possible option.

What exactly are nonprofit grants, and what do they do?

Nonprofit startup funding is important for your charity.

Well, when it comes to grants, the earlier you receive them, the better. Instead of waiting until you’ve officially started your organization to begin applying, make sure you have a plan. Start reaching out before your organization becomes fully operational because this will prevent future instability. It will also enable the eventual success of your nonprofit.

Here are two prominent types of grants:

Government Grants

There are many government grants out there. This fact will benefit you because there’s no end to the applications you can send out to finance your startup. That being said, make sure to go through the different grants and see which ones will suit your organization the most. To have a better understanding of available grants, you can look through grants.gov.

There are differences between federal grants and state grants. So, make sure to research the ones that are applicable in your area. Keep in mind that there are requirements to meet and contracts to negotiate. You should expect some initial hurdles!

Foundation Grants

Private foundations also provide nonprofit startup grant funds. It may be difficult to know where to begin, but focus on your state and start researching the available private grants in the area.

You may also need to approach the foundation and give them details about what you plan to do with your nonprofit. This will include your projected budget and the specifics of your business plan. If all seems to be suitable, they’ll happily finance your organization.

Note: Business grants are a possible fundraising strategy. Many for-profit businesses create corporate programs, grant options, or scholarships, available to nonprofit organizations. A different type of corporate funding, if you will.

3. Individual Donations for Nonprofit Startup Funding

Did you know that several nonprofits exist by relying on individual contributions from the public? For example, individual donations are the major driving force for the World Wildlife Fund.

To access public donations, set up fundraisers or auctions. Don’t be afraid to get creative. That’s what will draw people in. Fundraising is also a great way to tell people what your nonprofit is all about. This could improve the chances of more donations or public support. Events like bake sales to full-on carnivals, in a post-COVID world, would be useful.

4. Offering Memberships

Providing membership options is a suitable method to earn a fixed amount regularly. People who sign up will contribute to your nonprofit on a recurring basis. You won’t have to worry about finances drying up.

Offering memberships do not apply to all forms of startups. If you have an idea about what to provide to your members- for example, exclusive access to events or information — then this may be a viable funding option.

Tips for Finding Funding Sources

There are several ways to show your organization is ready for funds, improving your chances to bring in more (and do more for your cause).

  • Compile relevant programs: Doing the research work of gathering all relevant programs (nonprofit grant programs, for example) helps determine the possibilities.
  • Clearly convey your nonprofit projects: Whether it’s through memberships, individual donations, grants, or other funding methods those giving will want to know about your track record and how the fund will be used.
  • Show transparency: Keeping accurate track of how dollars and donations are utilized gives people a sense of trust. Accurate financial record-keeping also mitigates issues with governance. Working with a qualified team, experienced in nonprofits, helps immensely.

Nonprofit Startup Funding Can Be Easy

It may seem scary at first. But, you have many options to access nonprofit startup funding. From grants to memberships, you will benefit from researching. You will also benefit if you try out as many options as possible.

Why should you believe in your dreams? If you are compelled to start a nonprofit, use this as your selling point. Helping your community is a great mission to guide your organization. There will always be others who see the potential in your charitable acts.

For more nonprofit help and outsourced bookkeeping assistance, check out our services. This is also a very popular topic in a Modern Nonprofit Facebook Group, which you can join TODAY.

The Importance of #GivingTuesday in 2020

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Despite the cold temperatures, themes during the winter months are warm and optimistic. For example:

  • Thanksgiving: A holiday focusing on gratitude and appreciating what one has.
  • Christmas: A time spent feeling grateful for being with and giving to others.
  • Giving Tuesday: wait, you might ask, what is that?

It’s completely okay if you don’t know the specifics, or haven’t heard of, Giving Tuesday!

Giving Tuesday is a “global generosity movement unleashing the power of people and organizations to transform their communities and the world,” according to its website. And everyone can get involved! If that’s by donating to a charity, volunteering for a nonprofit, or performing random acts of kindness, you can do good this year.

Giving Tuesday is very important for nonprofits because it is a time for charitable donations and significant contributions from the greater public. We at The Charity CFO are proud to work with hundreds of nonprofits every day, and you can view our scope of work on our website here.

This Giving Tuesday, give if you can to the organizations that help make our communities great. With the COVID-19 pandemic, there has been no greater need for nonprofits to continue to help those who may be struggling.

Is your nonprofit hoping to find financial balance after Giving Tuesday? Schedule a time to talk with The Charity CFO and book a FREE STRATEGY SESSION here.

How to Hire a Freelancer as a Non-Profit

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Are you looking to hire a freelancer as a non-profit?

If so, you probably have a lot of questions. You want to hire someone who will be a good fit for your business and produce high-quality work.

Indeed, there are many qualified freelancers out there. But there are also those who won’t be as great a fit for your company.

How do you tell the difference? We’ll go into some tips below.

Keep reading to learn more!

Why Hire a Freelancer?

If you’re a non-profit, you know the struggle of trying to decide when to hire a full-time member of staff.

The advantages of hiring a freelancer are well documented. It could help you save money, reduce your risk, and access specialized talent and skill sets that you wouldn’t be able to afford otherwise.

After all, you want as much money as possible to be able to go to your cause. In addition, most donors don’t give to your office administration fund. This often doesn’t leave you with endless funds to add people to your payroll.

Yet, you still need to get the work done. If it’s not something you can do yourself, you might find yourself at a bit of a loss.

This is when you should hire a freelancer.

What Are Freelancers?

Freelancers use their professional expertise to help a variety of clients.

Yet, instead of working for a company, they work for themselves, setting their own hours and prices.

This can have a variety of advantages. For one, freelancers offer you the flexibility to only pay for the services you need, when you need them. Frequently, freelancers and companies develop long-term working relationships.

Yet, you are under no obligation to use a freelancer more than once. This means you don’t have to keep them on your regular payroll when you’re finished using their services.

Are There Any Cons to Hiring a Freelancer?

For all of the positives there are to working with a freelancer, quite a few negatives also exist.

Chiefly, these pertain to variances in professional experience. These days, anyone can create a profile on places like Upwork or ProBlogger and market themselves as a freelancer.

So, how do you ensure you’re finding a true professional who will work well with your company?

Follow the steps below for a better freelancer hiring experience!

1. Identify Your Needs

A successful hiring process always begins with you.

Before you start searching for freelancers, identify what type of work you need done. There are many different types of freelancers, and you don’t want to hire a freelance social media manager when you really need a freelance writer.

Be as specific as possible, outlining the length and any other pertinent details.

Work out a budget as well. Do some research into what the average freelancer charges for this service and make sure you can afford it.

Compile all of these aspects into a list and allow anyone who will be over the freelancer or their project to contribute to it. The clearer you can be with yourself and your team, the higher the chances of hiring well.

2. Create a Job Ad

Using the information you just gathered, write a compelling job ad.

In order to attract freelancers, tell them as much information about the project as possible. For instance, if you want to hire a WordPress freelancer to help you with your website, emphasize how they’ll play a crucial role in your web development.

Then, inform them of any benefits they may receive, including what you’re willing to pay or the possibility for continued work. If you’re willing to discuss pay with them, take note of that as well.

Last, if your project is urgent, write that in as well. This will let the freelancer know that they should have a decent chunk of time in their schedule if they plan on working for you.

Require your applicants to send you their resumes and references. That way, you can see their professional experience and ask previous clients if they were satisfied with their work.

After you’ve finished creating your job ad, post it on a job site! Freelancers often visit certain sites, such as Fiverr, Upwork, and ProBlogger, to look for jobs, so make sure yours is there!

3. Search Freelancer Websites

As mentioned above, many freelancers go on freelancer job boards quite often.

Did you know that many of them also have profiles on these sites?

Usually, these profiles contain information on the types of work they do, how to contact them, as well as client reviews. If you’re looking for a specific type of freelancer, simply go on one of these sites and search for a particular service.

This should pull up a list of top-rated workers. Peruse through their profiles until you find a person you believe would be a great match. Then, reach out to them and pitch your project.

4. Pay Them for a Test Service

Do you have a specific freelancer in mind but don’t know whether or not they’d be right for you?

Offer to pay them for a test service. This test can be anything you’d like it to be as long as it showcases the skills necessary to complete your project. To save yourself money, make it shorter than your actual work order.

Once they return the test to you, evaluate it and see what you think of their work.

5. Ask to See a Portfolio

Most freelancers keep portfolios of their work to show potential clients.

Before hiring someone, ask to see their portfolio or other examples of their finished past work. This will give you an idea of what this person sees as a professional level of quality.

Want to Take Control of the Money You’re Spending?

If you decide to hire a freelancer, you are making a very good financial choice for your non-profit.

After all, freelancers often get the work done without giving you the additional burden of putting a full-time staffer on your payroll. They also often provide professional-level experience for a lower price.

Want to better manage your non-profit’s finances? See how we can help!

The Insider’s Guide to Bookkeeping Services For Nonprofit Organizations

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Bookkeeping includes invoicing, employee payroll, financial reporting, and more. Is your nonprofit interested in using bookkeeping services? You’re in the right place.

Affordable bookkeeping services for nonprofits are crucial for ensuring financial stability and accuracy. Keep reading to learn exactly how nonprofits can benefit from outsourcing bookkeeping.

What Are Bookkeeping Services?

Bookkeeping and Accounting may be used interchangeably, but they’re very different. Bookkeeping is focused on cash flow for an institution while accounting is basically analyzing all of that data. This helps assess the overall financial health of the organization.

Nonprofit organizations have many financial needs like any business. They have to file complicated taxes, certify for tax-exemption status, and report out. They also have to track donations! This can be a lot for a small staff to handle.

Bookkeeping services are handled by a team of professionals who have experience in the field with nonprofits. Many of these experts have worked with religious organizations, foundations, and even museums. They use software and knowledge of financial trends to help your nonprofit succeed.

Why Should I Use Bookkeeping Services?

There are many reasons to outsource bookkeeping. In addition to being safer and more secure, it enables you to focus on your organization’s mission.

Get Auditing Assistance

Nonprofits typically undergo an annual audit, unlike many other industries. This is time-consuming for the bookkeepers and accountants at the institution.

Save time and money by using bookkeeping services. These services can ensure that your organization is reporting accurate information to the Internal Revenue Service. They can also ensure that your institution is in a state of financial health.

Auditing involves a complex analysis. It also involves finding records of all transactions and donations for an organization. Some nonprofits choose not to do this because of the workload. However, completing annual audits shows donors that your staff is committed to transparency. This can help secure future funds and help with grant applications.

Avoid Fraud

No one wants to talk about the possibility of fraud, but it can happen within the nonprofit world. Embezzlement is also a risk, especially with multiple employees in the finance department. If there aren’t checks and balances in place, tracing money can be difficult.

Luckily, outsourcing bookkeeping services can ensure integrity for your nonprofit. These highly-skilled bookkeepers know exactly what to look for to avoid fraud and can easily identify issues. That way, the issues are caught before they become harmful to the organization.

For example, bookkeepers can see double payments or cash from a new vendor. Maybe they see a sudden increase in payments. They can even comb through documents that appear to be backdated or have questionable signatures. These can be indicators that something fishy is going on at the organization.

Since they manage all documents, data, and cash flow, professional bookkeepers add a level of security to the institution. As a third-party entity, bookkeepers can help your organization stay safe. This ensures security for your nonprofit.

The typical organization loses 5% of it’s annual revenue to fraud. That can be a lot if your organization is a multi-national nonprofit. Avoid lost revenue by using an outsourced bookkeeper.

Get Tax Filing Assistance

For nonprofits to earn their 501(c)(3) status and tax exemption, they have to be transparent. This means complete accuracy with the IRS on all financial matters. This includes strategic and accurate bookkeeping to provide easy filing when it is needed.

Nonprofits can have many revenue streams, including tax-deductible donations, membership dues, and even ticket admissions. Getting everything organized for tax season can be really complicated.

Bookkeeping services are useful because they use software that organizes all records perfectly. These professionals can also help identify areas to lower expenses for your organization. That way, you can reap the most benefits of the money your organization receives.

Using a dedicated bookkeeper absolutely makes this a seamless experience. This reduces stress during tax time for the nonprofit staff. Instead, it gives you the time to work on your mission and serve the community.

Save Time and Money

Instead of spending time organizing receipts, invoices, and payroll, handoff those duties to an expert. Your staff can then spend more time executing your mission.

In 2013, nonprofits paid $634 billion in wages. Hiring and training new employees, even if they’re very talented bookkeepers and accountants, can take a lot of time and energy. Instead, spend that manpower and resources on finding an outsourced financial services business.

Once your outsourced bookkeeper is set up, it requires very little management on the nonprofit’s side.

Bookkeeping Software Is More Accurate

Your organization might not have the funds to have a full-time bookkeeper and bookkeeping software. Luckily, an outsourced bookkeeping service has those resources for you to benefit from.

Bookkeeping software makes everything much more accurate. There is so much room for error when a team handles financials by hand or in a simple Excel sheet.

Avoid that hassle by investing in affordable financial services.

Ready to Outsource Bookkeeping Services?

Now that you know the many benefits of using an outside service, request a meeting with us to get started.

Pretty soon, your nonprofit’s bookkeeping services will be a breeze.

Our dedicated and experienced team works with an array of nonprofits. Many of our clients have been able to expand their impact on the community due to our financial help.

Check out our blog for more information on how our nonprofit financial services could work for your organization.