Nonprofit Resources
Supporting Your Organization’s Potential: Client Accounting Services for Nonprofits
While some nonprofits have an in-house financial operations or accounting team with the necessary capacity and skill, others may need assistance. One potential solution is outsourced client accounting services provided on a contract or retainer basis.
Outsourced client accounting services allow your nonprofit to use as much help as you need, with the specific skills, expertise, and insight you require. It’s a truly custom approach tailored to your organization’s specific circumstances.
This article provides four insights about outsourced accounting services to consider and four questions to ask as you assess the potential benefits for your organization. Now let’s take a closer look at how nonprofit organizations are using and benefitting from outsourced client accounting services.
What types of client accounting services can nonprofit organizations benefit from?
Nonprofit client accounting services can range from basic accounting tasks to more advanced services that provide data and insight.
CapinCrouse provides outsourced client accounting services to dozens of nonprofit organizations every week. Nonprofits reach out to us for assistance in a variety of areas, including:
- Audit preparation services as well as liaison services in which we serve as the point of contact with your auditor
- CFO coaching
- GAAP accounting and best practices
- Tracking government grants
- Reviewing software needs and assisting with solutions
What are some common accounting and financial reporting challenges nonprofits often need assistance with?
Many times, nonprofits have bookkeepers who work hard to use the organization’s accounting systems effectively but lack the time, resources, or experience to deliver the financial information the organization needs to make informed decisions. We can help these organizations objectively assess their current processes and how they can reach their goals.
Another common issue we see is nonprofits focusing on irrelevant details in their accounting processes, which can cause them to overlook the bigger picture. One symptom of this is a bulky or redundant chart of accounts, which we can advise accounting services clients on to help them simplify.
Ensuring the accounting team applies the necessary software updates and participates in the training their software companies provide is another frequent challenge. These updates and training resources can help organizations access timely information that is crucial to making forward-looking decisions. We can help clients assess whether they are using an up-to-date version of the software and assist them in streamlining processes, freeing up time clients can use to participate in training and become more proficient operators of their systems.
When should nonprofits consider outsourced accounting functions?
Your organization may benefit from outsourced client accounting services if:
- You are unable to get sufficient financial information to make informed decisions
- You have manual accounting processes that you could automate to save time and money and increase accuracy
- Your accounting team is short-staffed, or you need to augment your team’s expertise
- Your team is so busy with day-to-day work that they don’t have time for important tasks like preparing for the audit or keeping up with bank reconciliations
- A team member has left, and no one has been trained to manage their responsibilities
- Your organization is rapidly growing and outpacing the capabilities of your current systems and talent
- You are having a hard time finding qualified staff
How can nonprofits benefit from outsourcing?
Here are some of the top benefits many nonprofits see when they partner with an experienced outsourced client accounting services firm, especially one that specializes in working with nonprofits:
- More efficient and effective financial functions
- Less time and resources spent on recruiting, training, and managing employees, which is becoming increasingly complex in our technology and data-driven world
- Access to professional insights, best practices, trend analysis, strategic planning, and more to help the organization grow and become stronger
CapinCrouse has been exclusively serving nonprofits for over 50 years, and we have a deep understanding of the unique challenges you face. Our clients have access to our experience performing accounting functions for organizations across multiple sectors, including churches and educational institutions.
In addition, as a national CPA and consulting firm, we have access to extensive knowledge from various specialties across the firm. If a client question or situation merits further research or discussion, we can use the expertise of our colleagues specializing in nonprofit audit, tax, cybersecurity, and other relevant areas so that you benefit from industry-leading knowledge.
You can learn more about how CapinCrouse can help your nonprofit with outsourced client accounting services here. Please contact us with questions or if you would like to discuss your organization’s specific needs.
Authors: Courtney B. Gregory, Partner and David J. Gunter, Partner
Additional Resources:
Could Outsourced Accounting Services Benefit Your Organization?
Navigating Church Finances: The Benefits of Client Accounting Services
Building Efficiency and Success: Client Accounting Services for Educational Institutions
