Our approach is true collaboration, working side by side with you to help your business be as successful as possible. Once you start talking about using services, you may start seeing dollar signs and be worried about how much this will cost you. Let’s take a look at how much these solutions really cost and how they could potentially pay off for you and your business. When you outsource your non-profit’s bookkeeping, nonprofit bookkeeping the organization scales with you. Outsourced bookkeeping companies have entire teams devoted to ensuring that client bookkeeping is done efficiently and effectively no matter how much growth is involved. An in-house bookkeeper at a non-profit may need to get used to software that isn’t up to par with other bookkeeping software used elsewhere, whether it’s a lower price tier or simply inefficient software.

Plus, full-time bookkeepers are experts in the field that can generate more thorough reports and documents that take some pressure off your back once tax season hits. Outsourced bookkeeping services are a symbiotic relationship between your business and a third party that will balance your books. Though the process might look different for small vs. big businesses, the steps will generally be the same. Having a professional manage your account means they’ll have up-to-date records and can provide insight into your financial position. Up-to-date financials let you anticipate cash flow, reduce costs, and better your organization’s financial position.

Our Accounting Services

No matter what that mission is, it’s important for everyone within the organization to devote their time to accomplish this mission. Earlier in the https://www.bookstime.com/ article, we discussed different ways to outsource bookkeeping. Here’s a more detailed overview of the 2 main ways outsourced bookkeeping works.

They’ll take it from there, generating financial reports, ensuring your ledgers are up to date, and tracking money that goes both in and out of the company, among other essential tasks. Jitasa’s experienced nonprofit accountants will set your organization up with a cloud-based accounting system and chart of accounts to guide the financial aspects of your daily operations. We’ll also handle a variety of analysis and reporting tasks, such as reconciling accounts, compiling financial statements, and issuing 1099s. Just like any other freelancer, freelance bookkeepers work for themselves and provide bookkeeping services for clients. Freelance bookkeepers can be a good option if you understand bookkeeping in depth, and are able to be the second set of eyes for your books.

Pro: More Time to Focus on Your Business

We provide data processing back-office support, increased efficiency and accuracy, and more. This information will be used later to produce financial statements (and report your financial information to the IRS), so you should thoroughly and accurately detail each transaction your nonprofit makes. It’s also important to recognize that bookkeeping is not a part-time job. Adding this responsibility to an existing staff member’s to-do list will likely overwhelm your employees, and your books won’t get the undivided attention they need.

That way, you’ll identify potential bank errors, help track cash flow, and prevent fraud. There are a few decisions to make when outsourcing bookkeeping—most notably, local vs. virtual and freelancer vs. firm. All options have pros and cons that depend on what you’re looking for from your accounting service. Having all of your bookkeeping together throughout the year will make tax season much easier. Up-to-date reports will be provided monthly throughout the bookkeeping process, giving you a good idea of how much you’ll owe when tax season hits. Bookkeepers can also help with tax preparation and can help you navigate your tax returns.

OSYB Can Manage Your Non-Profit’s Bookkeeping

Outsourced bookkeeping for non-profits gives you access to all of the latest software and programs designed to handle your books in the most effective way possible. For some companies (including OSYB), your bookkeeping records are kept using cloud-based software, meaning that you can always keep tabs on what’s happening. You can get in touch with professional bookkeepers for virtual bookkeeping through an online account.

• Your budget for bookkeeping should fall within the general $250-$2,000 per month, but there are outliers in that range due to the many variables.
• Working with an accounting professional who understands nonprofits issues can help you avoid this cascading nightmare.
• An outsourced accountant has experience implementing strong internal controls, and because they’re impartial, they can help reduce these risks.
• Bookkeeping is often billed at an hourly rate, so the more transactions a business has the more it’s bookkeeping will cost.
• Let’s look at a couple of services and how they can differ between accountants.

Your outsourced service will be handling your financial records, so you might feel like you have less control over them. But with the right provider, you can be as involved in the process as you’d like to be. We’ve created a table providing ranges to give you an idea of what to expect based on revenue (ecommerce) or employees (professional services). One of the primary advantages of partnering with an outsourcing accounting company as they can dial in the exact level of skill set for each role you’ll need at any given time. As your accounting needs ebb or flow, we can ramp up or down each level on the fly.

Correctly tracking income for each designated purpose lets you generate reports to see giving trends. It also lets you monitor donor retention, create donation statements, and welcome new supporters. An outsourced accountant has experience implementing strong internal controls, and because they’re impartial, they can help reduce these risks.

That’s why your first step in the bookkeeping process should be finding a bookkeeper (and evaluating your outsourcing options). In other words, effective bookkeeping practices will accurately record and monitor your financial activity throughout the fiscal year. When the time comes to report your financial activity or make a budgetary decision, you’ll be equipped with precise and thorough information. That way, you can be sure that your nonprofit maintains both its 501(c)(3) status and the trust of its supporters. Our clients are provided a complimentary subscription to the leading, cloud-based accounting software platform available, Quickbooks Online.

Outsourced Bookkeeping Services vs. Hiring an In-House Bookkeeper

If you decide to hire and manage a bookkeeper, you’ll also have to decide whether the position is part-time or requires a full-time, full-charge bookkeeper. The cost of living in different parts of the US varies, and this can also affect the cost of bookkeeping services. When it comes to managing the financial health of your business, enlisting the services of a US bookkeeper is often a wise choice. These financial experts play a crucial role in maintaining accurate records, ensuring compliance with tax regulations, and providing valuable insights into your company’s financial performance. You must establish a safe and secure data exchange method with the outside accounting firm, preferably a modern cloud-based approach. That way, the accountants can quickly pull the necessary information without wasting your time and resources.