Why Outsourcing Your Bookkeeping is Right for Your Nonprofit

Nonprofits faced more financial challenges than ever before in 2020. Shutdowns, rising demand for services, and new modes of operating have put already-strapped organizations in even more challenging circumstances. For many nonprofits, their energy is likely focused on meeting their mission and providing services to those in need—not on administrative tasks. However, areas like bookkeeping are an integral part of running a nonprofit and, when not handled correctly, it could spell financial trouble for the organization.

That’s why many nonprofits turn to outsourced bookkeeping services. Instead of hiring an on-site bookkeeping expert or expecting a staff member—who may not be well-versed in the intricacies of the job—to take on bookkeeping responsibilities, outsourcing allows organizations to rely on help from a trusted, knowledgeable resource. This approach offers a range of benefits for the organization—from supporting its bottom line to protecting its financial future.

Benefits of Outsourced Bookkeeping

1. Save Time
   When nonprofits work with an outside bookkeeper, staff members do not have to invest time into learning and managing the complex financial landscape of the organization. They can instead focus on operations and fundraising, setting the organization up for a more successful future. Also, there is no need to go through the time and expense of hiring, training and supervising an on-staff bookkeeper.
2. Proper Oversight
   Outside bookkeepers, like the experts at Paisley Solutions, have the experience to ensure your organization is maintaining accurate financial records and the insight needed to detect any red flags. By implementing certain procedures to minimize the potential for fraud, misuse of money and improper expenses, outsourcing your bookkeeping is a strategy that can save nonprofits big in the long term. Additionally, a professional bookkeeper can take the lead when it comes to reporting financials to board members, and maintaining continuity as staff, volunteers, and leadership change.
3. More Focus on the Mission
   With better money management, nonprofits can funnel more of their funding directly to their mission. Outsourcing bookkeeping tasks also frees up staff and allows the organization to go the extra mile for the communities they serve.

How to Choose an Outside Bookkeeper

Nonprofit organizations have a responsibility to their donors to choose vendors with care. When hiring to outsource your bookkeeping, look for an experienced bookkeeper that is bonded and insured. Ask the bookkeeper or firm for references – it will help to choose an outside bookkeeper that has experience working with nonprofits so they can understand your needs.

Nonprofits frequently serve as a source of trust for their clients and supporters, which is why their staff and leadership should be confident that the organization is on strong financial footing. Working with an experienced outside bookkeeper can help organizations enjoy the peace of mind that their finances are in expert hands. Contact Paisley Solutions today for a free consultation!