Outsourced Accounting For Nonprofits: Will It Help Your Mission?
Why nonprofits outsource accounting tasks
Many communities depend heavily on the help of nonprofit organizations, which is why these institutions need to ensure zero disruptions in their internal processes.
But some internal processes, like accounting and bookkeeping, can be complex enough to take away the focus of the organization from its core mission.
While nonprofits are mission-oriented organizations, the risk of having problems, especially in compliance with tax exemption policies, is high when finance is not properly managed.
Nonprofits cannot afford to halt operations due to some fiscal management hiccups, which is why outsourced accounting for nonprofits is the solution of choice for many industry leaders.
Contrary to what many believe, the practice of outsourcing, especially on the financial side of the business, is fairly common with nonprofits.
By outsourcing accounting functions, a nonprofit organization can depend on a team of experts to do the books for them without breaking the bank.
Benefits of outsourced accounting for nonprofits
Get certified professionals
Having certified professionals doing the books for your nonprofit organization will allow you to submit more accurate filings on time. The consequences of having bad books can be costly and disruptive but having experts in the field would ensure all the books are good.
By outsourcing accounting tasks, you also get a group of professionals to keep an eye on the compliance of your organization with changing state regulations, particularly on tax exemptions. With an outsourced team, you get expertise and experience in the financial side of the business.
Moreover, outsourcing providers source talent from countries with very low labor costs, allowing you to get certified professionals at very low rates, compared to building an accounting department solely on your own.
When you outsource accounting professionals, you also get access to the enterprise-grade technologies and software that they use to make your books more accurate. These tools can be expensive when you build an accounting team on your own, but with outsourcing, it comes with the package.
Offset nonprofit risks
The people involved in nonprofit work, especially the smaller organizations, are mostly volunteers and part-timers, which increases the risk of mishandled finances. With an outsourced team focusing on your books, the risk goes down dramatically.
By partnering with an outsourcing provider, you also ensure that there are always professionals managing your books, instead of worrying about how the usual high turnover rates may affect your accounting department.
Stay consistently accountable
With good and accurate books done by certified professionals, you get to show the board committee, public financial institutions, and donors that your nonprofit organization is accountable. In the process, you get to keep your status as a charitable organization.
Focus on your mission
Perhaps, the biggest upside of outsourcing accounting functions is having the peace of mind that your finances are safe and compliant with state regulations. This will allow you to focus more on improving aspects of your work as a nonprofit organization.
With outsourcing, the amount of time and resources that you save can be allotted to the expansion of your projects. These huge savings will also allow you to help more people from the communities you serve and tap more donors to help you fulfill your mission.
Outsourcing to the Philippines
If you are interested in outsourcing your nonprofit’s accounting tasks, you may want to consider outsourcing accounting to the Philippines. Not only can you get talent for very low rates, but you can also be sure that you get top-quality professionals.
The Philippines produces nearly 200,000 certified public accountants every year. These accountants are college and university graduates, whose study involves global practices as well. Most CPAs in Manila have experienced working with agencies that serve clients around the world.
Filipino accountants adapt easily to foreign cultures and are quick learners when it comes to the various financial and tax regulations of different countries. Expect Filipino accountants to quickly learn how your operations work.
Companies that outsource to the Philippines mostly laud the communication skills of Filipinos, especially their impeccable English. But what you would like to understand is that Filipinos have a deep culture of charity and helping their fellowmen.
Having lived through the strongest typhoons and earthquakes, Filipinos know the value of giving, and they will surely understand your mission as a nonprofit organization. When you have accountants who understand the values of your nonprofit, you know that you have found something quite rare.