Most, if not all, nonprofits need to work within a tight budget. Programs, salaries, capital projects, building maintenance – none of these line-items are free. Many executive directors and board members are trying to find ways to decrease expenses, but tightening your organization’s purse strings in the areas of accounting assistance and bookkeeping may end up costing you more in the long run. Here’s how.
Nonprofit Accounting is more than Plugging Numbers
Oftentimes nonprofit directors, especially those of small or new organizations, anticipate they or someone on staff will have the ability to handle a simple spreadsheet noting money in, money out. Unfortunately, there can be legal ramifications if directors and/or board officers handle your organization’s finances improperly. Financial mismanagement can appear in many different forms and having a dedicated nonprofit accountant can greatly lessen this risk.
Even with the implementation of financial software tools like QuickBooks, a staff or board member may not catch the warning signs of upcoming strain on your organization’s finances. A practiced accountant will look ahead to try and anticipate risks such as financial instability and cash flow issues. An accountant who specializes in nonprofit accounting has industry perspective on the potential challenges and successes that lie ahead. Many nonprofits don’t see the same amounts of revenue each month and sometimes rely too heavily on fundraising events or grants. An accountant specializing in nonprofit finances is crucial in guiding your nonprofit through the ebbs and flows of the strong and lean months.
Finding an Accountant for Your Nonprofit
Numbers 4 Nonprofits specializes in nonprofit accounting. We are passionate about the work our nonprofit clients do in the community and take great pride in sharing a small piece of the success of your nonprofit through reliable, accurate financials. If you question whether your current situation is the best fit for your organization, we would welcome the chance to speak with you.
Remember, an outsourced accountant pays for itself by saving you time and stress, digging into financial management issues, and providing dependable financials so you can be confident when reporting to your board. Numbers 4 Nonprofits is here to help manage your money with mission. Tell us your story today!