In Pursuit of Profit
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Do nonprofit organizations need the same level of accounting support that for-profit entities do? Absolutely! Accounting and finance support is critical for nonprofits looking to receive funding because it increases their likelihood of both securing funding as well as utilizing that funding to drive organizational growth afterwards. Let’s explore the many ways in which accounting support can benefit nonprofit organizations looking for funding! Demonstrate Transparency One of the most obvious benefits that accounting support for nonprofits can offer is transparency. Using an outsourced accountant will likely result in more accurate reporting, which subsequently leads to greater financial transparency. This is something that donors and grantors will absolutely want to see before offering their support! Support Strategic Financial Management Furthermore, having more accurate financial data means organizations are more likely to make good financial decisions now and into the future. That kind of strategic approach increases their likelihood of success, which in turn makes them more appealing to donors and sponsors. Funders want to know that their investment is going to help the organization succeed because everyone wants to be a part of a winning team! Achieve Stability Similarly, the added financial stability that arises when organizations have a firm understanding of their finances makes them more attractive to other organizations who may want to partner or share funds to collaborate with them. A fellow nonprofit organization is going to guard their budget closely to ensure they are being good stewards of their finances, so they are likely only going to take a chance on working together if they believe that doing so will be a step up for them instead of a gamble. Offer Credibility Nonprofits that have an accountant or accounting team on staff also appear more credible, and that added legitimacy can help them secure funding. Unfortunately, due to budgetary constraints, smaller nonprofits often think that ongoing accounting support is out of their reach. This is where an outsourced accounting service can be extremely helpful, because working with a third-party accounting team can provide the same credibility boost at a fraction of the cost of hiring the same staff in-house. Mitigate Risk Any good accountant, whether internal or outsourced, will work hard to implement internal controls where they are lacking and uphold them where they already exist. Internal accounting controls are an organization’s best defense against financial malfeasance and fraud. Taking these kinds of precautions assures donors, sponsors, and partnering organizations that their investment in an organization is going to be protected instead of falling into the wrong hands. Aid in Regulatory & Grant Compliance It’s no secret that nonprofit organizations have considerable compliance standards and requirements to uphold. This reason alone often necessitates utilizing specialized accounting help to handle the uniqueness of nonprofit bookkeeping and accounting. Furthermore, grant management has its own special accounting requirements, which means that having an experienced nonprofit accountant to handle these activities is often a necessary component of securing and maintaining grant-based funding. When you need nonprofit accounting help, reach out to us! Our team of accountants have the experience needed to help get your finances in order so your organization can receive the funding it needs to achieve its mission. Contact us today for more information about outsourced accounting for nonprofits!
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7/8/2024