For many nonprofits, finance and accounting aren’t core competencies. Trying to fulfill those duties takes up time that could otherwise be spent on program services. Outsourcing your accounting functions can be an effective strategy for ensuring financial accountability and compliance while you concentrate on mission-related activities.

Here are the advantages of outsourcing accounting services for nonprofits:

  • Cost-effective financial management. Many nonprofits will save money on training, payroll, and other costs by outsourcing CFO, controller, and accountant roles. Nonprofits need these functions, but often not on a full-time basis. Outsourced accounting benefits also include access to technology and processes that boost efficiency.
  • Agility and flexibility. When you outsource accounting, you avoid the negative effects of staff turnover and shortages, and you retain the flexibility to dial these services up or down as your needs and operating environment shifts.
  • Access to specialized expertise. Sound financial management—the kind that results in clean audit opinions and stable finances—requires an accountant with nonprofit-specific knowledge and experience, such as how to account for conditional and donor-restricted funds.
  • Stronger internal controls and compliance. Separating responsibilities, such as those who handle money and those who account for it, and filing all regulatory and grant reports on-time may be difficult for smaller nonprofits with very few employees.
  • Support and training. When your key finance person is learning on the job and needs support, or your staff need training on new accounting software, outsourced accounting can be a helpful solution.
  • Mission-focused investment. Nonprofit leaders need to be strategic about allocating limited resources. Often when an organization is growing, it’s best to focus spending on roles and technology that raise funds or deliver program services.
  • Trust and transparency. With the support of outside nonprofit expertise, you can rest assured the financial reporting you provide to the board and other stakeholders will be accurate, thorough, and understandable.

Outsourcing provides an opportunity to get flexible finance and accounting support—whether you have short-term challenges such as succession planning, unplanned transitions, or special projects, or need a long-term solution to supplement your existing team or serve as your full finance function.

Outsourced finance and accounting services, through firms like Your Part-Time Controller, provide nonprofit leaders with the peace of mind that their finance department is being run efficiently and effectively.

By working with YPTC, you can confidently navigate financial management, strengthen compliance, and invest more energy in advancing your nonprofit’s mission.

Interested? Contact us. We’re ready to help you get the job done. 

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