4 Outstanding Reasons To Hire Accounting Services
Accounting is one of the major pillars that support and facilitate the survival of nonprofits. But, sometimes, it can be a burden and take up lots of crucial time, especially when the paperwork piles up faster than your team can handle. Besides, having an in-house accounting team is associated with various issues, including spending considerable sums on recruiting talent and wages and underutilizing some accountants during off-peak seasons. Fortunately, you can now avoid these by hiring accounting services for your non-profit. Some of the reasons to do so are discussed below.
1. Transparency
Non-profits primarily rely on donors for funding. And, to retain them, the organization must show unquestionable levels of financial transparency. A donor feels safer contributing to a nonprofit with transparent leadership and operations because they are assured their money will go into projects that make the world a better place. You can use accounting services to facilitate prompt, timely, and accurate transaction entry, boosting accountability and transparency. That makes you trustworthy in the eyes of your donors. Plus, professional accountants help you comply with the law by preparing and availing the nonprofit's application for tax exemption and recent annual information returns upon request, something that, according to authorities, proves your commitment to transparency.
2. Tracking grants
As a leader in a nonprofit, one of your primary duties is preparing grant proposals that help you seek contributions from government agencies, corporations, and foundations. Many people consider pursuing grants a noble endeavor because it often enables nonprofits to receive generous funding and boost credibility and visibility. In addition, once your organization has received one grant, chances are high more will come in the future. However, applying for grants goes hand in hand with tracking them. And that can be a messy and confusing affair, especially if you are pursuing many grants. But nonprofit accounting services handle all the tracking for you to ensure grant tracking isn't the reason your nonprofit slips into financial instability.
3. Financial data security
Accounting is often compromised by several security issues, including data breaches, remote data access from unauthorized personnel, use of outdated software, and protecting sensitive files with weak passwords. An in-house IT (information technology) department can tackle and prevent most of these. However, experienced accountants still need to monitor your financial information to detect suspicious detail changes. Besides, working with a dedicated nonprofit accounting service provider limits the number of people with access to sensitive financial data and information.
4. State-of-the-art tools
Hiring an accounting service gives you access to various essential tools and equipment. The reason is, dedicated accountants have access to up-to-date software for bookkeeping functions, donation management, customer relationship management (CRM), email marketing, etc. Plus, nonprofit accounting companies regularly train their employees to ensure they are at par with recent developments. That better positions them to keep up with trends like cloud computing, blockchain technology, optical character recognition, and machine learning, which are vital in accounting.
Contact a company like Leaf Point Solutions to learn more.
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