Urgent Reasons To Outsource Accounting Services For Your Non-Profit Organization
If you have a cause that you are incredibly passionate about, you could be deliberating on starting a non-profit organization so that you can raise awareness among the general public about this cause while also raising funds to support it. As a result, you end up focusing your attention on persuading donors to finance your non-profit, applying for grants, and so on.
But one aspect of running a non-profit that you should never take for granted is the accounts. Finances are particularly sensitive in the non-profit world since you will be relying on other's people money to finance programs that are supposed to be for the greater good. Hence, rather than run the risk of having this funding revoked, check out the following urgent reasons to outsource accounting services for non-profits.
Accounting services for non-profits ensure you are always prepared for an audit
Simply because you are passionate about a cause does not mean that donors and lenders will assume you are employing the funds you receive appropriately. As such, you will be audited occasionally for an array of reasons. Most commonly, both donors and lenders will want to be guaranteed that you are being financially responsible with the money that is being invested in the non-profit.
Secondly, depending on the status of your non-profit, your books should be able to prove that you are not funneling any money for personal gain, whether it is to fund a political campaign or personal reasons. If you do not have previous bookkeeping experience, there is a high chance that your accounts will have gross errors and missing information, which would make your donors and lenders think you are misappropriating funds. To make sure that you are not at risk of losing your non-profit status, you should outsource accounting services for non-profits, which ensures you are always prepared for an audit.
Accounting services for non-profits keep tabs on grant applications
One of the more tedious aspects of running a non-profit is applying for grants. Provided by government agencies, large corporations, and more, approval of these grants can prove indispensable when it comes to keeping your non-profit afloat without having to worry about paying back the money that has been provided. Therefore, it is not uncommon to find non-profit organizations applying for multiple grants at a time.
Problems arise when you cannot keep track of all the various grants you have applied for because they may have varying requirements at different stages before you can receive approval. Instead of running the risk of losing out on these grants because you did not follow through with the requirements, you should outsource accounting services for non-profits. The professional accountant will only keep tabs on grant applications but will also help uphold the financial security of the non-profit organization by knowing which grants have been approved, those pending, and those that have not.