Why not-for-profit organizations should consider outsourcing their accounting office

Why not-for-profit organizations should consider outsourcing their accounting office

In recent years, an increasing number of not-for-profit (NFP) organizations have been exploring ways to supplement their staff or replace their accounting function with an outsourcing solution. Many organizations opt to engage an outsourced accountant due to unexpected staffing challenges or turnover. Taking a proactive approach can help organizations better understand their unique needs before issues arise, avoiding rushed searches for accounting support that may result in suboptimal outcomes.

The decision to outsource an NFP organization’s accounting office is also driven by the following key factors:

  • NFP expertise: Not-for-profits are complex and compliance-heavy, meaning there is a need to attract qualified talent with specialized industry knowledge and experience who understands the unique needs of mission-based organizations and the industry.
  • Staff turnover: A decrease in accounting graduates and individuals taking the CPA exam nationwide combined with the many accountants approaching retirement has contributed to an accountant shortage. As one can imagine, this is wreaking havoc on organizations trying to hire qualified accounting staff.
  • Technology: Due to complexity and compliance requirements, many organizations are transitioning to sophisticated cloud-based technology solutions to better manage their accounting and required reporting. Rapid advances in technology can create knowledge gaps and change management concerns. Outsourcing allows NFP organizations to work with specialists who understand the intricacies of not-for-profits and best-in-class accounting and reporting software.
  • Resource constraints: The candidate shortage is driving up salaries and wages, making it difficult for not-for-profits to find qualified candidates within their budgetary constraints.

Finding the right support for your NFP accounting needs

Baker Tilly, a trusted advisory and outsourced accounting firm, specializes in guiding not-for-profits in managing their accounting back office. Our NFP-dedicated team offers the following value:

  • NFP specialization: Experienced professionals possess in-depth knowledge of not-for-profit operations and accounting. We understand the unique challenges NFPs face and can provide tailored solutions.
  • Compliance management: Navigating compliance requirements can be daunting. Baker Tilly’s team helps your organization remain compliant with regulations, freeing you to focus on your mission.
  • Stability and continuity: With Baker Tilly, you gain a consistent level of support. Staff turnover and disruptions due to employee absences are no longer a concern. We manage our team seamlessly, so you don’t have to.
  • Fractional staffing solutions: Our Client Accounting Services (CAS) model equips organizations with a fractional team that encompasses every role needed to round out the accounting office without spending hours vetting through candidates, hiring and onboarding. Baker Tilly staffs most engagements with a fractional team of staff accountants, senior accountants, controllers, managers and/or CFOs, as needed.
  • Financial reporting: Our CAS team members apply their understanding of your organization and reporting requirements with our NFP industry knowledge to deliver timely and relevant financial statements.
  • Long-term relationship: We offer more than just CAS. We’re committed to ongoing collaboration and guidance, supporting your organization’s mission, growth and sustainability.

Baker Tilly can help

In summary, outsourcing your accounting functions with Baker Tilly can transform the way you manage your back office, allowing you to concentrate on your core mission.

Ready to take the next step? Consider engaging us for a CAS assessment. The assessment’s objective is to help identify areas for accounting automation, time savings, risk and workflow standardization opportunities across your organization.

For more information, or to learn more about how Baker Tilly can help your NFP organization, explore our outsourced accounting solutions or contact our team.

Brenda Jacinto
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