Nonprofit organizations, like for-profit businesses, rely on effective financial management to thrive. Hence, accounting and bookkeeping are equally vital and demanding parts of daily operations, requiring more resources due to their complexity, time consumption, and potential for errors. That’s why many nonprofits are outsourcing these tasks.

Is it time for your nonprofit to consider this option? Answer these questions to find out:

Q: Do you have someone on your team with enough accounting experience to handle all the nuances and specifics of nonprofit accounting? 

If you’ve already got a full-time accountant on your team, that’s great. But it’s likely time to outsource if that person cannot give it the full attention it needs (especially if this is you). Doing so lets you and your team focus more on your primary goals and gain a more streamlined operational structure.

Q: Does your existing software accommodate nonprofit accounting solutions?

If yes, then you might be in good shape. If not, you’re likely hindering your organization’s progress. Sure, your old software has worked “okay” for years. But as your nonprofit changes and grows, you’ll need a system with the ability and agility to flex with your organization. An antiquated accounting system often does more harm than good.

Can you instantly access real-time data and reports? Upgrading to a cloud-based accounting solution gives you that ability. It also optimizes your financial procedures, increases accuracy, and helps detect opportunities that can enhance and strengthen your organization. When you outsource your accounting, you also gain access to top-notch software, making it a valuable investment.

Q: Does your accounting person fully comprehend how to utilize nonprofit accounting software and how to get the most benefit out of it? 

Kudos if you’ve already got such a valuable resource on your team. Otherwise, it’s time to take another look at your existing capabilities. What’s the learning curve for your accounting person to get completely competent on your software? Moreover, can your software be customized? Are there dashboards? Internal controls? Instant access to real-time financial information? The ability to do fund accounting? Grant tracking and billing? Most importantly, does it have a rock-solid audit trail? Outsourced accounting providers can give you solutions tailored to your organization’s unique needs. Plus, they have exposure to various other nonprofit structures, giving them the unique ability to offer more innovative solutions, insights, and best practices, which could better optimize your financial processes and decision-making. Can your accounting person do that?

Q: Do you have backup support for your accounting person? What happens if there is an emergency? 

When you outsource your accounting, you don’t have to worry about anyone taking vacations, sick days, disability leaves, or unexpected exits. Outsourcing eliminates staffing issues because you’ll have ready access to your accounting staff all year long.

Q: Will you still need to hire a professional outside your organization for more complicated accounting and financial tasks?

By leveraging on-demand accounting professionals, your nonprofit can save on overhead costs associated with hiring a full-time tax expert. Plus, outsourcing providers are well-versed in regulatory requirements, ensuring nonprofits adhere to legal and financial standards. This assurance adds a layer of trust and credibility, which is vital for nonprofits seeking to maintain a transparent and responsible image.

Q: If you added up all the costs for accounting staff, software, hardware, time, etc., how much would that be? Now, compare that to the cost of outsourcing.

Alternatively, you may wonder how much it costs to outsource your nonprofit accounting and what you get for that price. At Qbix, we offer outsourced, remote, accounting services at affordable rates for all types of nonprofits, big and small, tailored to their unique needs, and working with the team they have in place.

Our Fixed-Price Agreement includes a dedicated team of full-time, US-based accountants. Many clients report savings of over 40%, and we frequently handle an entire nonprofit’s accounting and bookkeeping within the budget equivalent to just one full-time employee’s salary. Plus, our month-end closes are completed by the 15th of each month 96% of the time. Does your internal accounting team meet those standards?

There are so many benefits to outsourcing your nonprofit accounting. Why wait? If you’re toying with the idea of outsourcing your accounting, consider working with Qbix. Let’s discuss the possibilities — schedule a free consultation call with us today.

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