By Mandy Potts, MBA
A common headache and time drain for growing nonprofit entities is how they manage their accounting and financial functions. Trying to find and maintain reliable, timely, and trusted employees to handle bookkeeping and some higher-level accounting services can be difficult if not impossible in a competitive workforce.
As agencies and the need for supporting systems grow, the workload and responsibility often falls to one person, which can lead to a financial control crisis. A considerable amount of time needs to be spent managing people, processes, and procedures, in order to promote a quality financial structure. Luckily with today’s technological advances, significant benefits and efficiencies can be gained by outsourcing the financial function in part or in whole.
But how do you know when it’s time to consider making an investment in financial services?
Below are 3 indicators to consider when deciding whether to outsource financial services:
1. Business is Outgrowing Staff
Often the workload falls on one person to manage the entire accounting and financial function. In a world where transparency is demanded, stakeholders want to see separation of duties and fraud mitigation. As the business grows, it is important to employ qualified staff that can keep up with the volume of financial transactions, as well as provide timely and relevant financial information. Perhaps your organization only needs to hire a part-time financial professional to handle the higher-level tasks such as budgeting, compliance, and strategic planning. Outsourcing those tasks could be just the answer to relieve some pressure on the bookkeeper and add another layer of oversight.
2. Finances have Become More Complex
If the organization is successful and growing, likely the finances are growing and becoming more complex. Especially in nonprofit organizations, managing grants and tracking expenses by funding source becomes a major challenge. Funders require specific reports during specific periods of performances to ensure their money is being well spent. Hiring a nonprofit grant financial management expert can assist with more difficult financial issues and ensure revenues and expenses are recorded accurately.
3. Organization is Modern, Thinks Outside the Box, and is Environmentally Conscious
Beyond handling the obvious financial reports, outsourcing financial services can also bring innovative gains to your organization. A modern approach to business that reflects the methodology of your organization such as telecommuting, virtual meetings, paper saving, file sharing, and cloud-based technology solutions are within reach.
If any of these indicators ring a bell, your organization might be ready for outsourced accounting services. Contact Rising Business Consulting today for a free 30-minute consultation.