Non-profit organisations make our communities' gathering places more tolerable, whether they be places of worship, youth organisations, or local business meetings.
As a result, they rely on reserves from commitments, participation contributions, programme incomes, fundraising events, open and private rewards, and venture salaries. Non-profit organisations do not have company owners.
Every stage of development and every size of non-profit organisation faces accounting issues. This includes new NGOs that need to move away from Excel all the way up to existing businesses that have the necessary tools in place but are having trouble with employee churn and inconsistent financial management. Any accounting issue increases the likelihood that your non-profit won't be able to expand, regardless of the stage of the organisation or its size.
Why Do Non-profit Organisations Need Outsourced Accounting at Different Stages?
Startup NGOs must carefully manage their funds as they acquire momentum and move into the growth stage.
The main obstacles are compliance with laws and regulations, internal control, and financial reporting.
It is impractical to expect a volunteer or professional in-house bookkeeper to successfully do all necessary activities with insufficient supervision, putting the organisation at undue risk. As a result, outsourcing becomes a practical substitute.
Growth brings complexity and fresh difficulties in doing business and handling funds.
The organisation demands good financial reporting and analysis, strong internal controls, high performance of routine accounting activities, and strategic planning.
An organisation also needs a controller, a "nuts and bolts" accountant, and occasionally a CFO.
It's difficult to find one or two persons who possess all of these qualities. As a result, outsourcing all or part of the work might offer the necessary capabilities and guarantee continuity as a non-profit grows.
How Especia Can Help in Accounting Outsourcing services for non-profit organizations
Here are just a few ways our non-profit outsourced accounting helps organisations:
- Comply with Regulations: Especia provides thorough compliance services as a component of our accounting management system, ensuring compliance with regulatory and auditing authorities.
- Enhance Efficiency: By automating or outsourcing crucial accounting tasks, managed accounting services enhance efficiency by freeing up people to concentrate on leading and improving the organisation.
- Accuracy: Supported by a team of experts, Especia's' top-choice accounting programme for charities generally increases accounting accuracy in formal analysis and reporting.
- Enhance Reports: Managed accounting solutions for non-profit organisations include data analyses and reports that assist them in learning more about their finances, contributions, dues, and other important factors. This aids in cash flow management and company decision-making.
Advantages of Outsourcing your NPO’s Accounting
- Give your non-profit's mission more time
Any thriving organization needs administrative responsibilities to function. Even though they might not be the most enjoyable or lucrative aspects of running a non-profit, failing to meet their demands is not an option.
Therefore, the time spent on administration is not time spent on the mission. Consider how much time you devote to keeping the books for your company. Think about using that time for fundraising, donor relations, or grant writing! You can invest the time you would've spent on accounting back on achieving your objective if you outsource the accounting duties to experts. Invest more time making a difference in the world and less time practising something you're not very good at.
- Reduce the Risk of Your Non-profit
Like any business, non-profits are subject to fraud and improper money handling. The risk is considerably greater for you because there are so many smaller NGOs that volunteers and part-timers run.
Trusting inexperienced employees to save money might cost you in the long run if your books are incorrect and current, even though this detrimental behaviour is frequently unintentional. Your non-profit can have a seasoned, unbiased professional keep track of your funds and assist in reducing the possibility of fraud or false reporting with an outsourced bookkeeping contract.
- Deliver State and Federal Filings Correctly
By this point, it should be abundantly evident that keeping timely and accurate financial records is essential to the success of your non-profit. The long-term effects of negative books are one reality that is frequently disregarded. Your accounting records must always be accurate to avoid improper reporting to federal and state entities.
This frequently happens with clients who come to us after handling their own books and filings for a while, or having someone else who is not a professional handle them. Bad books result in erroneous, unreliable filings. This compounds more and more as time passes.
- Expert Counsel and Advice
Working with a third-party expert has several benefits, one of which is their capacity to counsel your non-profit on crucial financial matters that affect it. Your bookkeeper may come across transactions or financial activity that warrants caution. It might be a chance to perform tasks more effectively. Your outsourced specialist is there to help you if, as is frequently the case, our client has queries about how to proceed in accordance with compliance best practices.
- Reduce Labour Costs
There are numerous expenditures involved when a non-profit's bookkeeping obligations expand to the point where a part-time or full-time bookkeeper is needed. The addition will affect the software and hardware budget, the training budget, and, let's not forget, the squeeze on office space, in addition to increasing the agency's administrative cost. Along with an hourly wage or salary, these expenses will also consist of the following:
- Finding, selecting, appointing, training, supervising, and keeping the employee
- Medicare, Social Security, and unemployment taxes
- health insurance and additional perks
- Time off for illness, holidays, and other reasons
A non-profit can eliminate the guesswork in calculating its annual expenses using an outsourced bookkeeping firm.
They begin establishing a monthly payment schedule for services, improving their capacity to make annual budget plans.
Consistency in expenditure is crucial for the bulk of organisations that operate on constrained and occasionally decreasing resources.
Compared to hiring internal staff, businesses that outsource their bookkeeping typically see total cost savings.
These cost savings might enable the company to increase compensation for present employees or hire more, which would help cut down on turnover costs.
Why Choose Especia?
- We Utilise New Technology
To assure financial savings for our clients, Especia stays up to date with the most recent advancements in accounting technology and solutions.
- Timely Actions
Our staff of highly skilled financial advisors puts forth a lot of effort to answer your concerns and consistently provides reliable, fast solutions. No matter how difficult the situation, we are used to working under pressure and providing prompt, correct solutions.
- Monthly Fixed Charges
Our clients at Especia have the choice of set monthly invoicing. We base this on three pricing tiers that consider the size and makeup of your company. You are always aware of the total cost upfront since we use fixed prices rather than hourly fees. No unforeseen costs!