Nonprofits and Growth: Why hiring an Outsourced CFO is key
Without Not For Profit (NFP) organizations our communities struggle with vital and fundamental resources. In order to serve their communities, they need adequate funding.
Typically nonprofits need more funding and staffing. Their employees are often wearing so many hats that they can’t bear the responsibility of an additional task. Outsourcing accounting services can help in-house employees focus on the mission. Rather than asking underqualified people who are already stretched thin due to funding constraints.
Many nonprofits underestimate the importance of accounting. Just because they are not for profit does not mean that money doesn’t matter. In fact, it’s second in importance only to the mission of the nonprofit. Having a proper accounting team is vital. The numbers help tell a story, woo a donor, receive a grant, pinpoint inefficiencies, plan for growth, and protect the organization’s reputation.
Outsourcing their accounting streamlines the process takes it off the hands of an overworked employee and helps an internal accounting team to learn the most efficient accounting for their industry. A streamlined process helps staff to free up time to focus on their other goals, stay engaged with funders, and program development including preparing for future growth. Outsourced accounting services may become more necessary/imperative when the nonprofit outgrows its in-house finance team.
Nonprofit accounting is not your typical accounting. It requires a different set of skills and knowledge. They operate under standard 117, which is governed by the Financial Accounting Standards Board. The FASB requires that they show expenses based on the functions they serve. Their numbers must be analyzed and reported regularly to meet funding requirements and restrictions as well as improve overall productivity.
As with all businesses, Accurate accounting is key!
Seemingly small mistakes can skew the data and can make the nonprofit look sick. Grants can be lost and donors can walk away. At the very least, a minute mistake can make the nonprofit appear underprepared and underskilled. Donors need to see that their money is being well spent and well managed. Any inaccuracies can cause damage to the sustainability of an org. Outsourced accounting services can help reduce inaccuracies and keep the donor engaged.
Hiring for an in-house finance position can be difficult due to a lack of applicants with the appropriate skillset. It can also be incredibly stressful as nonprofits are subject to fraud and embezzlement. Even a rumor of mismanagement of funds can take down a nonprofit. Outsourcing is the way to best ensure that you are getting a qualified & honest individual.
Key finance roles and what they can do to ensure the success of a nonprofit:
Outsourced CFOs are skilled at risk-management methods, cash flow planning, tracking operational metrics, preparing and reviewing budgets. They are an integral part of the success of a nonprofit as they help to ensure every dollar is spent wisely. They help instill trust in donors and make sure government requirements are met. They can work with an internal accounting team to help make their process more efficient. All of which are required in order for the nonprofit to grow.
Outsourced Controllers collect data for financial reports and supervise budget planning. Some outsourced CFOs can also fill the role of the controller. However, more robust/complex nonprofits call for both CFO and controller. Outsourced controllers are able to assist with improving in-house financial processes. As well as taking on the checks and balances role in order to provide a clear picture with the most accurate financial data.
An Outsourced Bookkeeper tracks and manages the day-to-day financial transactions as well as keeps a record of the regularly occurring financial changes. Even bookkeeping is unique for nonprofits. A minor error at this level can have a significant impact. Outsourcing can really free up internal staff from this tedious task and allow them to focus on the mission.
Outsourcing accounting services can help in-house employees focus on the mission, rather than asking underqualified people who are already stretched thin due to funding constraints.
Here at RTA outsourced financial services are what we do best. Our mission is to provide you with qualified individuals or a team who have experience in the nonprofit sector. They can help save time, increase productivity, increase accuracy, help streamline processes, decrease funding issues, and increase funding potential.
Here at RTA outsourced financial services are what we do best. If you are having trouble filling a position or just don’t know what to look for when hiring for your nonprofit we are here to hold your hand throughout the process. We have highly qualified individuals and teams that are ready to jump in and help you reach your nonprofit goals.
Your Full Outsourced Finance Team Solution!
Request a custom quote or more information about a service we offer. Call (833) 578-2477.