Accounting services not for profit

An internal finance department is a necessary cost centre for most organisations. The Not For Profit sector is no different in this respect.

Not For Profit providers are focused on delivering their mission and making a significant contribution to the sector they serve; however quality requires a high level of fiscal management. This ensures programs can be delivered, expenses are covered, and the organisation maintains a sustainable future with measurable growth projections.

Managing all these objectives is a complex balance of timing money in and money out. Many NFPs grapple with needing a dedicated internal financial division or outsourcing this function to a professional team.

In this article, we look at the benefits of outsourcing and how our team can assist you.

Outsourcing has become a popular strategy for many NFP organisations that seek to optimise their operations and focus on core competencies and missions.

While traditionally associated with areas like marketing, logistics, human resources (HR), and information technology (IT), over the past decade, outsourcing financial divisions has become more mainstream.

The value of outsourcing a financial department can be substantial, offering a range of benefits beyond cost savings to include access to expertise, enhanced efficiency, and the ability to scale operations effectively.

The principles driving outsourcing of areas such as marketing and HR apply to the financial department, and the rationale is simple. It saves the organisation considerable costs while enabling access to specialised expertise.

One of the more challenging elements of financial management for NFPs is reporting. Financial reporting requirements to the ACNC and stakeholders can be complex and fluid. For many of our clients, this element of financial management is resource-draining for their in-house teams.

By outsourcing to a firm specialising in financial services, NFP organisations gain access to professionals with deep knowledge of NFP accounting standards and regulatory compliance. At Accounting For Good, we implement robust financial recording systems that feed the necessary reporting requirements, enabling NFPs to be audit and acquittalready without the unnecessary burden of allocating resources when the deadline creeps up.

Outsourcing also offers scalability. As an NFP grows, its financial and reporting needs become more complex. At Accounting For Good, we scale our services to match NFP growth, adding or reducing services as needed. This flexibility is critical for NFPs who don’t have the resources to hire a full-fledged financial team.

Cost savings are a significant advantage. Maintaining an in-house financial department can be expensive, with costs including salaries, benefits, training, and software. Accounting For Good can reduce these costs, allowing the organisation to pay for only the services it needs when it needs them.

Outsourcing also ensures that personnel gaps are efficiently and appropriately covered. Accounting For Good’s team of bookkeepers, assistant accountants, accountants, and managers ensures that if any leave is taken, skilled team members can step in to hold the fort until their colleague returns. The same cannot always be said for an in-house financial department.

While outsourcing the financial management of the NFP benefits cost savings and scalability it also offers collaboration with sector specialists who possess a deep understanding of the sector’s specific challenges.

When NFPs partner with an external financial service provider, such as Accounting For Good, they are not just outsourcing routine tasks but gaining access to a team of professionals who live and breathe the sector. Our specialists are well-versed in the latest trends, regulations, and economic factors impacting the sector, enabling us to provide strategic insights beyond standard financial management.

Our team can identify potential risks and opportunities that might take time to be apparent to an in-house team. We can offer tailored advice on everything from cash flow management to revenue strategies. Our network has the potential to provide valuable resources that can further support the NFP’s mission and financial objectives.

As discussed in this article, outsourcing various functions within an NFP is not a new initiative, and for most organisations, the process makes a significant contribution. Outsourcing key financial functions, including accounting, budgeting, reporting, compliance and risk management, and bookkeeping, is of strategic benefit to NFPs. Outsourcing saves money and resources and helps ensure an NFP is allocating its resources where it can do the most good.

Making a choice to outsource the finance functions of an NFP can be daunting, and we acknowledge that it can be a significant cultural change to an organisation.

Reach out to our team to discuss whether it is the right fit for you—we are always happy to chat.