Outsourcing your nonprofit’s accounting functions is an important decision and is one NFP Partners can provide guidance on. In this article, we will discuss questions to ask both your organization and any prospective outsourcing provider.
Q1. What is our nonprofit we good at?
Accounting functions can encompass a wide range of jobs and duties including bookkeeping, payroll, and financial analysis. Similarly, accounting functions also cover budgeting, strategic planning, auditing and grant management, and compliance. Some of these jobs require a small amount of training and can be handled with minimal support. However, as nonprofits grow and finances become more complex, it may become time to bring in outside assistance.
Your nonprofit can either hiring a consultant to assist in reviewing current processes and implementing new ones or outsource those duties. On the other hand, perhaps an organization employs a highly skilled accountant that would prefer to do higher level job duties, but they can’t focus on these tasks because of the daily bookkeeper managing that requires immediate attention. Either way, take a deep look at the performance of the accounting functions and identify the strengths and challenges.