Outsourced bookkeeping for a nonprofit

Today, outsourcing is a crucial component of doing business and dismissing it as an unnecessary risk puts organizations at risk of falling behind their rivals. Outsourcing bookkeeping will allow an organization to free up staff members for more high-priority projects and activities that support its mission. Jitasa’s tax specialists have filed more than 4,000 tax returns for nonprofits of all shapes and sizes.

As a nonprofit leader, you naturally want as much of your resources to go toward furthering your mission as possible, but of course, keeping a nonprofit’s operations in motion doesn’t just happen for free. Surrounding yourself with a team of experts is how successful businesses succeed. Following the completion of all financial choices for the month, you will be able to view the specifics of your transactions and outlays. The average annual Independent Bookkeeper salary as of November 2022 is $56297. The majority of independent bookkeeper rates or salaries range between $35500 to $61500 per year. Opinions expressed on the pages of this website belong to the author and do not represent the views of companies whose products and services are being reviewed.

Looking for a Nonprofit Bookkeeping Solution?

Outsourced bookkeeping rates are typically priced by volume or number of transactions, and therefore, pricing needs to be customized to fit your business’ unique needs. https://www.bookstime.com/ In general, most bookkeepers fall within a range of $50-$100 per hour for their services. Many small business owners outsource their bookkeeping to an accounting firm.

For example, employees’ salaries in a two-dimensional accounting system will be recorded as salaries expense on a certain date. In a three-dimensional accounting system, you must also capture the functional expense and categories in which the salaries are to be recorded. This requires the accountant to allocate the salaries expense based on a variety of factors across various functions including fundraising, administrative, program 1, program 2, etc. This can get very complicated and time-consuming and is mostly unique to nonprofit accounting. Finally, board members are personally liable for their custody of the nonprofit organization’s assets. You want to ensure your back office is run smoothly and efficiently to ensure the errors & omissions policy that protect you is always paid up and that your financial reporting is handled accurately and compliantly.

Accounting Services For Your Nonprofit

However, don’t downplay your contribution and knowledge throughout the price process. The majority of the above-mentioned employee-related costs can be reduced or even completely eliminated by outsourcing accounting services. By lowering these expenses, you may create the capacity and time necessary to expand your practice in addition to financial savings. Selecting an accounting service provider is a critical decision that can significantly impact the financial health of your business. So, find a firm with experience and expertise in your industry, check their credentials, and review testimonials from past clients. Then, consider the exact services they offer, their technology, and their prices.

We will reconcile your bank accounts to prepare your balance sheet, income statement and other financial reports upon request, as well as advise you on how to read your reports. Outsourced bookkeeping for non-profits allows you to focus on your organization’s mission, and you can rest assured that your books are kept up to date. Instead of spending every night worrying about the numbers, spend your time on bookkeeping for nonprofits the betterment of your non-profit organization. However, even non-profit organizations have processes and procedures that are both necessary and time-consuming—even if they’re not directly tied to the overall mission. When you go for a bookkeeping firm, you get some additional assurances not provided by solo bookkeepers. For example, a bookkeeping firm may hire professional bookkeepers with certifications.

How Much Does Outsourcing Bookkeeping Cost?

While most companies are looking into bookkeeping services, some non-profits also opt for these services. All of our bookkeepers are US-based, Quickbooks ProAdvisor certified, and experts in nonprofit accounting. Essentially, you should view bookkeeping as the financial oversight process that’s necessary for operating your nonprofit daily. For example, bookkeeping ensures your nonprofit uses its revenue wisely and maintains its tax-exempt status. Accounting, on the other hand, is using that information to provide a detailed analysis of your finances.

For some industries, revenue may be one of the key indicators of scope for pricing. The more revenue you have, the more work your accounting team will need to perform. With decades of proven experience in accounting and HR, Milestone is standing by to support you and help your business grow. Contact us today to discuss your bookkeeping needs and get started with Milestone. The entry should contain information such as the donor’s name, the amount of money, and the date.

Predictable Costs for Easier Management of Funds

This statement provides insight into how much a nonprofit owes, what it owns, and how much money is left. Unlike for-profits, nonprofits don’t have equity because they don’t have owners, and that’s the biggest difference between a balance sheet and a statement of financial position. Some are unrestricted net assets and some are considered restricted net assets.

• Bookkeeping for a nonprofit is the process of entering, recording, and classifying an organization’s finances.
• To do this, you’ll need to set reasonable expectations for your income, expenses, and financial goals.
• Most also provide ongoing support and adjust your services based on your changing needs.
• It may be a situation where your bookkeeper notices transactions or financial activity that is concerning.

Now is the perfect time to use nonprofit bookkeeping services to ensure your financial records and policies are set up correctly. Plus, since you likely have a limited team, it helps to outsource your bookkeeping so you can focus on growing your organization and never get behind. A nonprofit with $5m+ in revenue should delegate more to an accountant than a nonprofit with $1m in revenue.