As you’ve probably learned by now, taxes are an inevitable part of doing business in the United States. While most focus generally lies on federal and state income taxes, there’s also a third aspect—payroll taxes. Before you engage our services, we put some time and effort into learning about your organization, personnel, mission, and programs.
You’ll receive a higher level of accounting expertise and redundant staff without adding one or more full-time salaries. There are many reasons why a nonprofit organization benefits from outsourcing their accounting needs. This selection of articles uncovers the many benefits of turning to a https://www.bookstime.com/ trusted outsourced partner to focus on your accounting challenges while you focus on your mission. To deliver accurate financials, nonprofits are held to a higher ethical standard. Given the importance of adopting internal controls, many nonprofits opt for outsourcing their finance processes.
The longer it takes to produce the financials and complete the audit, the more expensive the process becomes. Failure to meet audit compliance requirements can also create liability issues. At Jitasa, our mission is to improve the effectiveness and efficiency of nonprofits.
To learn more about outsourced nonprofit accounting, visit our Ultimate Guide to Outsourced Nonprofit Accounting. By purchasing the building, the nonprofit utilized grant money to offset depreciation expenses. Had they remained tenants, they would still be incurring rental costs today — likely at a rate higher than their initial payments. Having successfully paid off the loan and gained ownership of the building, they can now redirect those funds to expand services and initiate new community programs. In addition to our outsourced accounting services, we help with a variety of tax concerns and tasks. This includes preparing and filing your Form 990, helping you retain your tax-exempt status and navigating unrelated business income (UBI).
Benefits of Outsourced Accounting Services and Nonprofit Outsourced Accounting Consulting
Are you processing your own checks but overwhelmed by other accounting functions? And while we discussed state income tax in a previous article, you should also remember local income taxes. These are sometimes assessed in large urban areas (think New York City, San Francisco, etc.). There are 14 states that allow local governments to collect an income tax. That’s right—payroll taxes aren’t solely the federal government’s domain.
It demonstrates compliance with IRS regulations and informs the public about your programs, expenditures and compensation. This important information allows you to tell your financial story to current and potential donors — and strengthen your case for funding. These can cover programs like short- and long-term disability, workers’ compensation, paid medical or family leave and more. The term “outsourcing” can have negative connotations, but for many nonprofit organizations it can be an effective tool to help move the organization forward.
Year-End Tax Moves to Boost Your Practice’s Health
Your organization would be partnering with accountants who provide Nonprofit outsourced accounting firm services with extensive nonprofit government grants experience. The Organization would receive access to the best-in-class technology tools, to allow timely, accurate and transparent financial reporting. The type of reports O&S generates provides the executive team visibility into both financial and operational metrics. This allows them to make better decisions about programs, fundraising, staffing, and growth initiatives. CAS refers to a variety of outsourced client accounting services for nonprofits, such as bookkeeping, payroll, reconciliation, and audit compliance.
Learn about the responsibilities and best practices of a properly functioning nonprofit board. We serve clients throughout Florida and the United States, and we’d be pretty tired if we went to each and what is outsourced accounting every one. Whether you’re across the street or across the country, we can help your nonprofit. Learn how we recovered $100,000 in grant money for one client by getting them a higher indirect cost rate.
On the other hand, because our services are tailored to each client’s needs, there can be some uncertainties that need to be settled before going to a fixed fee. Because of such, for the first few months, we would bill you on a time and materials basis with the intent being transitioning to a fixed-fee arrangement when mutually agreeable. Working from our review, we’ll provide clear and actionable recommendations for improvement related to your particular processes, software, and systems. Ensure your financial reporting compliance for federal, state and foundation funding. Any accountant can do your books, but The Charity CFO is more than just a nonprofit CPA. Get the accurate reports you need and expert insights into what those reports mean for your nonprofit.
- We’ve helped many businesses reduce their tax liability and ultimately become more profitable as a result of working together with us to manage their finances more efficiently.
- The goal is to reduce general and administrative costs to make a bigger difference in the community they serve.
- Not many firms can offer both day-to-day accounting work and high-level strategic planning assistance—especially when both need to be tailored to nonprofits’ needs.
- Before you engage our services, we put some time and effort into learning about your organization, personnel, mission, and programs.
- When you partner with us, a dedicated service team works with you to immediately modernize and automate your accounting systems.
Furthermore, we have designed our services to meet your needs with respect to the dynamics and culture of your organization. When you work with us you’ll save money by only paying for the services you need. We offer a wide variety of outsourced CFO and Controller services to all kinds of small businesses. Outsourcing is a contract with a third party to perform services which are normally done in-house. These services typically are provided by companies who specialize in the field.