Benefits of outsourcing your bookkeeping for NFPs
Accounting and bookkeeping for your Not-For-Profit can be pretty stressful, especially if accounting or even bookkeeping isn’t your forte. You have a small, but dedicated team who keep the organisation humming and the donations flowing in. You also have budgets to adhere to, payroll to pay, even day to day expenses just to keep the organisation afloat and accountable.
Then there’s the monthly submissions to the tax office – GST, PAYG – perhaps tax at the end of the year, and then there’s single touch payroll? Accounting software? Who will take responsibility for this function when all staff are stretched? Will an unpaid board member do this job with enthusiasm if it takes more than 5 hours a week? Maybe not.
“the stress of payments and lodgements and allocations and even invoicing will be taken care of by a professional”
Off the bat, a benefit of outsourcing your Not-for-Profit’s accounting and bookkeeping is for a small monthly fee, the stress of payments and lodgements and allocations and even invoicing will be taken care of by a professional. Monthly management reports will be produced, even some commentary so the users of the reports are better informed and can make decisions.
“The size of the not-for-profit organisation will depend on whether audited accounts will need to be submitted to the commission”
Is your organisation registered with the ACNC (Australian Charities and Not-for-Profit Commission)? The size of the not-for-profit organisation will depend on whether audited accounts will need to be submitted to the commission, but regardless of size, financial reports will still need to be submitted to the Commission. Is the organisation a reporting entity? Do I prepare General Purpose Financial Reports or Special Purpose Financial Reports? What is an Annual Information Statement? What are the differences? What is cash accounting, and what is accrual accounting?
“An accountant will be able to guide your organisation through these questions and reporting criteria”
An accountant will be able to guide your organisation through these questions and reporting criteria. An accountant will also be able to analyse the financial data within your organisation and make suggestions for efficiency and cost saving measures.
Keep in mind that this is general information and should only serve as a guide. As such, it should not be taken as specific advice.
Managing your not-for-profit on a day to day can be exhausting – and that is taking into consideration
every other responsibility that does not encompass your financial record-keeping.
Written By: Stacey Giannopoulos
Immersed in the entrepreneurial world since she was a child, Stacey has always been an advocate for small businesses and the good that contribute to their local community. As a professional accountant, she focuses her skillset and expertise in aiding not for profits because she firmly believes that all business owners should love what they do and most importantly – be able to focus on what they love doing most.
“Businesses regardless of size are always vulnerable without an accountant they can trust. “