Managing a nonprofit organization comes with unique financial challenges, especially during reporting season. Nonprofits, while focused on their mission, must also ensure meticulous handling of their finances to maintain transparency, donor trust, and compliance with regulations.
Outsourcing bookkeeping for nonprofit organizations can be a strategic solution for nonprofits to stay in the clear on their finances, offering numerous benefits tailored to the specific needs of nonprofits. Let’s delve into why outsourced bookkeeping is not just a convenience but a necessity for many nonprofits to keep their books tidy and ready for tax season.
Global Hola's Connection to Nonprofits
Our founder and COO Nick Canfield is a former Peace Corps Volunteer and worked at 3 financial service nonprofits:
We know what it’s like to work in nonprofits and how to keep them lean and efficient with processes and finances. That’s why we created Global Hola to help businesses and nonprofits succeed by getting access to great talents and people from around the world.
What do outsourced bookkeepers do?
An outsourced bookkeeper does more than just manage your financial accounts and transactions; they play a crucial role in preparing your business for tax season. They ensure that all financial transactions are accurately recorded, categorized, and ready for when tax time rolls around. This level of detailed bookkeeping is essential for accurate tax filings.
The Philippines, in particular, has emerged as a leading destination for finding excellent outsourced bookkeepers for US small businesses.
Why should nonprofits hire an outsourced bookkeeper service?
1. Specialized Nonprofit Financial Expertise
One of the key benefits of outsourcing bookkeeping for nonprofits is gaining access to financial experts who specialize in nonprofit accounting. This sector has its own set of financial rules and regulations, including fund accounting, grant management, and specific tax compliance issues. Outsourced bookkeepers who are experienced in the nonprofit sector bring a wealth of knowledge in these areas, ensuring that your organization’s finances are handled accurately and in compliance with all pertinent regulations.
2. Stay Cost Lean
For many nonprofits, operating on a tight budget is how they’ve always done things. Hiring a full-time, in-house bookkeeper or developing an internal accounting department may be financially impractical. Outsourced bookkeeping services offer a more cost-effective solution. You pay for the services you need, when you need them, without the overhead costs associated with a full-time employee.
3. Increase Financial Transparency and Accountability
Transparency and accountability are crucial for nonprofits, especially when it comes to maintaining donor trust and securing funding. An outsourced bookkeeping service can help ensure that your financial records are accurate, up-to-date, and readily available. This transparency is critical for board meetings, grant applications, and donor reporting, reinforcing the integrity of your financial management.
4. Focus on Mission-Critical Activities
Outsourcing bookkeeping allows nonprofit leaders and staff to focus on what they do best – advancing the organization’s mission. It frees up valuable time and resources that can be redirected towards program development, fundraising, and community engagement, rather than being tied up in the intricacies of financial management.
5. Scaling and Flexibility
As nonprofits grow and evolve, their financial management needs can change. Outsourced bookkeeping services offer scalability and flexibility to accommodate these changes. Whether you need additional support during peak fundraising seasons or require more comprehensive services as your organization expands, outsourced bookkeeping can adapt to your changing needs.
6. Access to Advanced Technology and Tools
Outsourced bookkeeping providers often utilize the latest accounting software and tools, which might be cost-prohibitive for many nonprofits to acquire and maintain on their own. This access not only streamlines the bookkeeping process but also provides deeper insights into financial performance, budgeting, and forecasting.
Outsourced bookkeepers from countries like the Philippines are great at Quickbooks, Xero, and other popular accounting softwares. When we vet bookkeeping talents at Global Hola, we also make sure that they’re experts in advanced Excel techniques and financial problem solving methods.
7. Reduce Your Audit Risk
With an outsourced team of bookkeeping professionals, the risk of errors – whether unintentional or not – is significantly reduced. These experts are trained to spot irregularities and ensure that all financial transactions are recorded accurately, providing an additional layer of security and peace of mind.
Our Bookkeeping Success @ Global Hola
At Global Hola, we’ve placed a lot of accountants and bookkeepers with small businesses in the United States. Take for example Lion Bookkeeping LLC and MSV Financial Services.
MSV Financial Services,
Lion Bookkeeping LLC,
Should I Hire an Outsourcing Agency to find my outsourced bookkeeper?
In short, yes, unless you have significant experience navigating foreign talent markets outside the US. Maximizing your benefits with outsourcing requires a strategic and proactive approach and a deep knowledge of how to find talent from around the globe. By picking an outsourcing agency, you can reduce your hiring risk and find great talent quickly to start realizing the cost benefits of outsourcing your accounting needs.
Embrace a mindset of outsourcing as more than a cost-cutting tactic, and recognize its potential to enhance the overall performance of your business. With thoughtful planning, collaboration, and the right outsourcing partner, businesses can harness the full cost savings of outsourcing.
Find your nonprofit business bookkeeper
Contact us at Global Hola to see how outsourcing your bookkeeping to the Philippines with an expert bookkeeper can be a great opportunity for your nonprofit organization.