There are over 1.5 million nonprofit organizations operating in the USA – National Center for Charitable Statistics.
In my accounting tenure, I’ve witnessed the struggles nonprofits face when financial hiccups disrupt their vital operations and programs. The misallocation, poor reporting, and mismanagement of funds deprive them of the resources they desperately need. The common ground of these challenges is the lack of financial transparency and resources.
61% of donors claim to choose which nonprofits to support based on how “well” the organization utilizes its funding- source
Financial transparency is the beating heart of nonprofit accounting. It provides deep insights into program spending, nonprofit fundraising efforts, and grants received, instilling unwavering confidence among stakeholders and attracting increased funding for your mission.
It goes without saying – nonprofits are all about their mission-critical activities. But that doesn’t mean you can afford to neglect critical operational needs like accounting and bookkeeping. Striking the right balance between mission and finances is the key to unlock the nonprofit’s full potential. Let’s break barriers, shatter limitations, and forge ahead together.
Redefining Possibilities: How NPOs Eliminate Accounting Challenges to Drive Mission Forward
Are you tired of juggling endless funding requirements and restrictions while trying to manage cash flow and keep your books accurate? It’s a nonstop balancing act that diverts your focus from your noble mission. Fortunately, the solution is within reach.
In a world brimming with uncertainties, leaders of educational, charitable, religious, sports, and public-benefit organizations strive to drive their missions forward. But the constant influx of cash donations, classified as restricted and unrestricted grants, demands complex financial reporting to track funds and manage programs effectively.
What if there’s a way to handle these accounting complexities without investing in a full-service in-house team? Outsourcing nonprofit accounting is your golden ticket to success! With this game-changing solution, you can double down on mission success, leading your organization to new heights.
General operating support represents a vote of confidence in your grantees, frees their time to focus on mission rather than supplemental fundraising, and helps to decrease burn out among their leaders
NPOs Taking a Bold Move to Balance Mission & Financial Needs
Embracing undeniable benefits of outsourced accounting partnerships means nonprofits like yours can “think big” and take bold moves to close the gap between aspirations and where they are today. Shifting to outsourced accounting empowers NPOs to:
Leverage Accounting Best Practice
After recording day-to-day financials, your nonprofit bookkeeping partner swoops in, expertly reviewing entries, performing account reconciliations, and conducting month-end closing reviews. The result? You gain crystal-clear insights to make the best financial decisions, propelling your nonprofit to unparalleled mission success.
But that’s not all, your partner helps to set-up and provide access to the virtual environment and document sharing.
Crack the Code of Accurate Financials
Being an NPO leader, juggling manual data entry and deciphering complex spreadsheets can make you feel like navigating a maze. Accuracy is everything – from receipts and invoices to donations, expenses, and payroll. This information is crucial to stay prepared for what’s coming next and running.
Certified professionals generate accurate financials that you need to show the board members, public financial institutions, and donors where funds are being spent. With this invaluable insight, you can make informed decisions on fundraising, grant allocation, and risk management, ensuring you’re always one step ahead.
Strengthen Financial Control
In the pursuit of noble missions, trust is paramount. You must safeguard charitable assets and establish robust financial control to inspire credibility and win stakeholders’ trust.
Weak Financial Control = Broken Trust
“After all, what’s the point of tireless efforts without funding?” Why bother? You don’t need unicorns! A reliable outsourced accounting partner helps establish internal controls to ensure financial integrity and meeting compliance requirements.
Effective Cash Flow Management
Keeping a watchful eye on cash flow trends is a must to prepare for new or unexpected events and programs. Being a nonprofit leader, you are not unknown to ups and downs in cash flow. Mostly, the timing of grants and disbursement doesn’t match.
However, business intelligence enables nonprofit leaders to develop and maintain cash flow projections that look forward 24 months. Endowments, restricted funds, and cash reserves are best tracked through this brilliant solution.
Improve Financial Transparency
Stakeholder disclosure – it sounds simple, but it’s no walk in the park for nonprofit accounting teams. The pressure to adhere to the best accounting standards and deliver timely financial reports can lead to burnout.
With the right outsourced accounting partner in your corner, month-end reports, cash flow statements, and balances become seamless. A monthly financial review showcases how your nonprofit’s funding fuels its mission, painting a vivid picture of success.
Visualizing and measuring the impact of initiatives unlocks the key to handling restricted and unrestricted grants more efficiently in the future. As a result, donors, communities, and stakeholders gain clarity on where contributions end up, boosting trust and confidence.
GuideStar published a study that showed “transparent nonprofits received 53% more in contributions” compared to those that did not.
Eliminate the Accounting Brain Drain
You no longer need to drag your team through complex grant tracking, cash flow management, and preparation of financials, accrual-based accounting and monthly reconciliations.
With outsourced accounting, you get the best of both worlds – timely, expert service that’s also cost-effective. This is why you have much needed peace of mind as your partner carries out monthly reconciliations, internal control evaluation, grant reporting, fund accounting, financial statements, customized reporting and more…
“I have been working with the PABS team for three years now. I have been extremely satisﬁed with their services. The support of the team and the information they provide has been integral to the ﬁnancial workings of our operation. I would highly recommend their services.”
Owner, NapaSport SteakHouse and Sports Lounge
Tax-Exempt, Nail 990 to Stay Compliant
Being tax-exempt doesn’t mean tax preparation headaches disappear. NPOs still need to file 990 to maintain their status. Outsourced accounting service providers ensure accurate tax preparation by reliably maintaining your books and records of donated gifts, multi-year contributions, exchange transactions and unconditional contributions. With their expert guidance, you effortlessly stay compliant with regulations, laws, and revenue recognition rules around funds with and without restrictions.
More Time to Focus on Mission While Staying Operational
Yes, it’s possible with the power of outsourcing accounting. Embrace it, you liberate your team from bookkeeping and financials. You can channel this time towards nonprofit fundraising, grant writing, or donor relations.
Unlock the true potential of your mission with outsourced accounting as your secret weapon. This transformative approach enhances financial transparency, doubling down on your mission’s success. If you are still clueless about how outsourced accounting helps to improve financial transparency and maximize mission success – Watch Webinar!
“Don’t just dream it – live it!”