Small to mid-sized businesses and nonprofits tend to default to having one person control all of the business’s accounting functions, known fondly as “the bookkeeper.” Oftentimes this bookkeeper ends up being the company’s owner or nonprofit organization’s executive director. Aside from the capacity challenges of a high-level employee managing the books when they should be focused on managing the progression of the organization, having only one person performing the accounting can open doors to the potential for fraud.
Navigating the year 2020 showed all of us how working from home can become a successful business model and it also showed owners and nonprofit directors how outsourcing services can save resources and time, especially with outsourced accounting/controller services. Not sure you’re ready to commit to fully outsourcing? Here’s how you can keep your bookkeeper AND help them by outsourcing business controls.
Fractional Controller/Accounting Services
With limited budgets, nonprofits would benefit greatly from having a part-time accountant or fractional controller. While your bookkeeper would continue crunching the numbers, your part-time accountant can perform these higher-level services:
- Payroll review
- Coaching and process recommendations
- Budget and audit prep
Outsourced accounting services are growing and so are niche accountants focused specifically on certain businesses. 45% of small businesses don’t have in-house bookkeepers, and that number rises exponentially for nonprofits. In-house accountants can cost anywhere between $53,000 to $90,000 plus benefits. That’s not to mention all of the other cost savings organizations enjoy by bringing in outsourced services:
- Reduced office overhead expenses
- Less time spent on staff recruitment and personnel training costs
- Maintaining current accounting technology – software and IT support
Turning to an outsourced accountant that focuses on nonprofit needs will cut costs down significantly. Plus, this fractional, focused accountant understands the ins-and-outs of constantly changing nonprofit accounting regulations.
Questions to Ask When Looking for an Outsourced Nonprofit Accountant
Consider these questions first before moving forward with outsourcing outsourced accounting services:
- Do you need a licensed CPA?
- How many hours will the outsourced accountant require to accurately and thoroughly manage the services you need?
- Which accounting tasks can continue to be handled in house?
- Do you want to hire a local or national outsourced accounting firm and how much can you afford
- What is your budget for these services?
Numbers 4 Nonprofits can help your nonprofit with all the outsourced accounting and business controls services you need to keep your mission moving forward.