How Outsourcing Your Nonprofit Financial Services Can Be Beneficial
Finances power your business, and ensuring you’re making the most of your resources is key to staying competitive. However, the cost of both for-profit and nonprofit financial services can rise significantly over time, and costs keep rising as your business grows. Fortunately, there is an alternative to hiring your own bookkeeper, accountant, controller and CFO: outsourcing. I know the word can be scary to some, but we are not talking about offshore or sending your data afar. We are talking about experienced and licensed CPA’s that act as your virtual accounting resource. Here are a few benefits of outsourcing your financial services.
Take Advantage of New Technology
Accounting and financial software is advancing quickly, and new tools can save a considerable amount of money. However, new technology is expensive, and many companies simply can’t afford to pay for new tools. Because financial services companies focus exclusively on the financial aspects of business, they can afford to invest in cutting-edge technology and provide it to their clients.
Hiring new employees is part of the business growth process, and companies that hire full-time financial service employees will have to hire more over time. Furthermore, the financial needs of companies change as they grow, and internal employees might not have the experience needed to handle finance-related tasks at larger companies. Because for-profit and nonprofit financial services providers typically have extensive experience with companies of all sizes, organizations that hire them can enjoy smooth scaling as their financial requirements change.
Saving on Labor Costs
When businesses are just starting out, it’s sometimes worthwhile to delegate financial tasks to employees. As your company grows, however, employee time is almost always better spent on other tasks. For-profit and nonprofit financial services providers develop efficient systems that let them more easily complete tasks, and these savings are passed on to the clients. Even at enterprise size, most companies can benefit from financial services outsourcing.
Running a business means dealing with financial issues and accounting. However, outsourcing nonprofit financial services is becoming more popular every year and is expected to grow by a compound annual growth rate of 7.46% between 2016 and 2020. Before hiring financial employees, consider if outsourcing your financial services and accounting is right for your company.
Feel free to get in touch if you have any questions at all! AccountingX offers free consultations to nonprofit organizations.