Don’t just repurpose the existing templates you use in hiring onshore workers. Make sure to include specific technical skill requirements, software proficiencies, language requirements, and industry knowledge essential for the role. In building your offshore team, be transparent about what the onshore and offshore teams will do, how they will collaborate, and when and where there is overlap. For example, AICPA & CIMA offshoring tools include a list of holidays and an offshoring vendor due diligence checklist. With this information in mind, you can make quality decisions and build your recruitment plan accordingly.

• Internal staff will need training on using the new systems and cooperating with the accounting team.
• These insightful reports can then be used by management and their Board of Directors to make important decisions with a greater sense of confidence.
• You can also ask for advice from nonprofits in your community or hire a nonprofit accounting or consulting service to help you identify your needs.
• And many CPAs or general accountants aren’t familiar with the specific challenges that a nonprofit faces.
• This trend continues into 2025 with accounting leading the way due to its high potential for automation and global talent integration.
• They understand the specific reporting standards, compliance regulations, and tax implications that affect nonprofit organizations.

This is particularly so in the accounting and bookkeeping sector, with several countries particularly invested in nurturing such talent. Outsourcing is a tried and tested resourcing strategy that typically sees businesses identify repetitive and time-consuming tasks and assign them to third-party team members in another location. With many aspects of finance and accounting fitting the bill as transactional and/or rules-based, such jobs lend themselves to outsourcing and, in turn, ease the pressure on small and medium-sized businesses. Five years in, the firm has set up an office and offshore infrastructure and is managing staff fluctuations on its own. With 5 former auditors on staff, we know exactly how to prepare you for a successful audit. Your books will always be audit-ready, so there’s never any catch-up to do when you need to write a grant or run financial statements.

Instead, program managers and executives can channel their efforts into strategic planning, project management, fundraising, community outreach, and impact assessment. This enhances nonprofits’ focus on their pioneering roles with more responsiveness, skill, and community engagement. They return to their purpose of driving positive social change rather than struggling with financial paperwork.

Top Fundraising Resources:

To maintain their credibility, nonprofit organizations have to be financially responsible. Nonprofit accounting differs from for-profit accounting in many important ways. That means you can be sure the professionals doing your bookkeeping and accounting work understand exactly what your organization needs—and have a proven track record of getting it right. Outsourced accounting services can be tailored to meet the specific needs of a nonprofit, whether it’s basic bookkeeping, payroll processing, grant management, or full-service financial oversight.

• This team will help drive profitability and growth by digging deeper into your financial information in search of actionable insights for improvement.
• The AICPA & CIMA offshoring tools include communication channels for outsourcing success.
• Donor management software can complement your financial strategy by helping you retain donors.

Start your nonprofit in 3 days—for free.

Nonprofit organizations use a fund accounting system centered on their accountability to donors and stakeholders. For-profit organizations are focused on profitability as the primary measure of success for their board members, customers, and investors. Nonprofit organizations have tax-exempt status with the IRS and operate in the best interest of their communities. That comes into play when we examine how nonprofit accounting differs from the best practices a for-profit organization might follow. It’s common for leaders to feel intimidated by nonprofit accounting, which has many nuances and regulations. We aim to help you better understand how to introduce compliant and efficient practices that support your organization’s growth with this nonprofit accounting guide.

Factors to consider when choosing an Outsourcing firm for non-profits

This means dividing up financial tasks—so no single person is responsible for everything. Nonprofit organizations can save a lot of money by turning to a third-party accounting solution, where services can be paid for à la carte and without the need for salaries or competitive benefits packages. Meanwhile, valuable space within the physical office can also be freed up and used for other purposes.

What financial and accounting roles can be outsourced?

Many small nonprofits invest in Kiwi Partners for a period of time until they have the capacity to hire their own full-time bookkeeper and accountant. Medium-sized nonprofits turn to their services if their own accounting department is under a lot of best practice to hire or outsource for nonprofit accounting additional stress from external circumstances or internal changes. Not only do they help nonprofits with their accounting needs, but Quatrro also helps with payroll and HR tasks, ensuring all of your internal financial needs are taken care of and well-managed. In an increasingly digital profession, data security has become one of the most critical challenges facing finance and accounting professionals today. Stay up to date with practical guidance to help you mitigate these risks and strengthen your security posture. For example, offshore employees doing tax work gather and organize data from clients’ documents, begin the initial preparation, and perform a self-review.

Want the Easiest Solution to Your Nonprofit Accounting Challenges?

With an outsourced provider, nonprofits gain access to a level of expertise that might otherwise be unattainable within a limited in-house budget. Professional accounting firms provide timely and accurate financial reports, which are crucial for transparency and accountability. With outsourced nonprofit accounting, organizations can present clear and comprehensive financial statements to donors, grantors, and board members, fostering trust and credibility.

The value of donor management software

Clean and organized account procedures ensure every donation is accounted for and goes to the best place to make a significant impact. They also provide accountability to the donors, board members, and community members who make your mission possible. In addition to ensuring security and safety of financial information, CBIZ helps nonprofits remain compliant with tax regulations by assisting in the preparation of completing your Form 990. Outsourcing is an excellent way to reduce costs and increase efficiencies but it is essential to partner with a provider that is right for your business and that starts by ticking a few key boxes. Whether you’re a startup aiming to minimize overhead costs or a seasoned enterprise seeking to focus on core competencies, outsourcing finance and accounting offers a myriad of benefits. The firm’s team members, who were used to working virtually, understood the importance of setting up workflows, processes, and controls before pushing tax return billable hours offshore.

Most outsourcing firms deploy powerful cloud-based accounting and reporting software for the sector. This spares nonprofits’ hefty up-front license costs and uncertainty around optimal tool selection. Advanced payroll, audits, budgeting, and mobile access features are available. Digital solutions boost speed, accuracy, and insights into organizational performance to aid well-informed decisions that benefit stakeholders. It is essential that the accountant has experience managing these funds, ensuring compliance with donor restrictions, and preparing accurate financial reports for grantors.

The goal is to lower costs, improve management efficiency, and boost quality. Fiscal outsourcing can be helpful to a nonprofit that finds itself ill-equipped to manage these and other financial risks alone. But before outsourcing, nonprofit leaders must first prepare to mitigate risks that may arise from outsourcing. Nonprofits must also establish clear channels to monitor turnaround times on Requests For Information, receive monthly or quarterly reports on time, and assess the quality of work periodically. Handling concerns promptly and cooperating fully with audits shows the nonprofit’s commitment.

Hiring local accounting teams comes with high salaries, operational costs, and compliance risks. It’s also becoming a strategic move for accessing specialized talent pools globally, especially in high-growth markets like the Philippines—a proven destination for outsourced accounting roles. But you’ll need to learn to conquer at least the most common nonprofit accounting challenges if you’re going to set your organization up for growth. With the right tools, strategies, and support, you’ll be able to manage your organization’s finances confidently and make sure every dollar is spent wisely. Work with our highly skilled accountants to strengthen your nonprofit’s financial foundation, so you can continue to make a lasting impact on your community.