Accounting is generally the nonprofit weakest link. Recently on a webcast hosted by Nonprofit Quarterly the following five areas were identified as links in a nonprofit’s shared financial management model:
1. Documentation of spending
2. Authorization for purchases
3. Recording and allocating expenses to the correct accounts and programs
4. Reporting accurate, timely data needed for decision making
5. Monitoring variances and developing action plans for course correction
At any given point in time, any (or all) of these could serve as a bottleneck for the organization – nonprofit weakest link.
It might be that you simply don’t have the human resources – there just aren’t enough people to task with the duties. Or, it might be that the organization doesn’t have the technology infrastructure to support the implementation of nonprofit accounting software to automate some of the procedures (approvals, electronic payment, generating monthly financial reports, for example).
Savvy chief executives are turning to outsourcing to address both the people portion (talent and expertise) and the technology portion (nonprofit accounting software) of the nonprofit financial management equation. And, they’re seeing great success.
Outsourcing their nonprofit accounting solves both problems and rockets them forward with the power that comes from up-to-date reporting with which to make strategic decisions.
Eliminate Nonprofit Weakest Link
The great thing about outsourcing your nonprofit accounting is that the transformation can happen within a month or two – and it’s so easy! As the executive leader of your nonprofit, you can focus on the strategic concerns of the organization knowing you’re equipped with the most current and accurate information for your decisions. You will be better able to:
• Communicate the financial dynamics of the organization
• Understand the status of grant funds – what’s spent, what’s committed, what’s available
• Protect against fraud, mismanagement
• Deliver transparency and accountability to the board, donors, the community
All of this can be accomplished quickly and, typically, at the same cost of bringing a full-time employee on board.
Let’s talk about the needs of your organization and see if outsourcing your nonprofit accounting is right for you.
Rocky Davidson Macon, GA
