Whether your organization is new or has been around for a while, it might be time to hire a not-for-profit accountant. There are some benefits to hiring a non-profit accountant. Learn more about the difference between non-profit and for-profit accounting at PorteBrown.com. This article will explain the differences between the two types of accounting and why you should consider outsourcing to a non-profit accounting service.
Benefits of hiring a not-for-profit accountant
Not-for-profit organizations often hire team members to do their bookkeeping and record-keeping duties. Hiring a certified public accountant is an excellent way to ensure that these areas are handled correctly while freeing up the team member to focus on their passion. This accounting service is ideal for organizations that want to maximize the revenue they generate from donors while maintaining accurate records.
An accountant can act as a manager for your business when necessary. They can oversee the operation of other employees and compile financial reports. The services of an accountant can be especially valuable for startup companies. Your business plan must include a financial section essential for obtaining financing. It can help you focus on the rest of your business. You don’t want to lose sleep over your finances as a business owner.
Non-profit accounting is different from for-profit accounting.
You might have heard of non-profit accounting before but are still confused about how it differs from for-profit accounting. While both types of organizations must track financial transactions, prepare financial statements, and maintain supporting documentation, non-profits use different accounting processes and terminology.
Generally, non-profits focus on transparency in their financial statements. Disclosures regarding donor restrictions, net assets, board designations, liquidity, and more are part of non-profit financial statements. A non-profit will often have fewer assets than for-profit entities. To keep track of its assets, it will need to maintain a higher level of disclosures than a for-profit entity. Non-profit accounting differs from for-profit accounting because non-profits must disclose more information to avoid conflicts of interest.
Outsourcing to a non-profit accounting service
When you outsource your accounting needs, you’ll have more options than you could imagine. Instead of hiring internal staff, you’ll get a team of experienced professionals who can easily respond to your business’s needs and handle any crises. They can scale up or down as needed, and they’ll be familiar with non-profit organizations’ intricacies.
A full-service accounting firm provides strategic financial advice that helps non-profits save money and fulfill their mission more efficiently. Hiring an outside vendor reduces the risk of fraud and theft. And because accounting departments are not the same for every organization, it’s important to have segregated duties. Outsourcing is an affordable way to accomplish this. Outsourced accounting firms also provide audit support. Outsourcing accounting to a non-profit is smart if you have staff members with the necessary skills and experience. While non-profits may not need a CPA firm, their accounting team can handle some simple transactions, such as tax preparation. But if your accounting needs are more complicated than handling the books, it’s worth considering a professional for help. For example, if you’re worried about your company’s financial health, you may consider outsourcing to a not-for-profit accounting service.
Cost of hiring a not-for-profit accountant
Hiring a not-for-profit accountant can be a valuable asset for non-profit organizations. These experts not only help ensure audit and tax readiness but can also give valuable insights into financial drivers. For example, non-profit organizations aren’t necessarily focused on generating the most revenue but rather on continuously improving their operations and bolstering fundraising. With such insights, non-profits can better determine which metrics to focus on and how to increase those metrics.
The cost of hiring a not-for-profit accounting firm varies significantly based on various factors, including the size of your organization, its life cycle, the number of employees, the number of expense accounts and credit cards, and your organization’s reporting needs. In addition, the experience of the person you choose is important. A skilled and experienced accountant will be able to provide you with the services you need while saving you time and stress.