Article
Why not-for-profit organizations should consider outsourcing their accounting office
May 22, 2024 · Authored by Brenda Jacinto
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.
