Bookkeeping is an essential component of any company, including nonprofits. Quality bookkeeping services keep financial records up to date, accurate, and useful. For many businesses, the question of how to approach the need for bookkeeping services is a daunting one. Is it better to have in-house bookkeeping, or to outsource? To answer this, organizations must evaluate the costs and benefits of the two options and make an informed decision on which approach better suits the organization’s specific needs and concerns.
The budget allocated to bookkeeping will vary from business to business, depending on the time and resources each organization has available. For nonprofits, overall budgeting for such services might be more limited.
Outsourcing can be less expensive than hiring an in-house bookkeeper. The size of an organization and the complexity of its transactions will be a significant factor in this determination. Hourly rates for outsourcing may be higher than the hourly rate of a staff member, but in-house staff come with additional overhead costs. Non-profit accounting also has unique complexities related to grant and donor restriction tracking, and other considerations that differ from a corporate business. Outsourcing bookkeeping to professionals with specific nonprofit experiences is often key for effective and accurate bookkeeping for nonprofit organizations.
Nonprofits might consider the following practical questions when evaluating whether to outsource bookkeeping services:
- Does bookkeeping take up too much time, or more time than can be afforded?
- Despite best efforts, are the books not usually accurate or up to date?
- Do current staff possess the expertise required for adequate bookkeeping services?
- Would outsourced bookkeeping lead to greater overall benefits for the organization?
Nonprofits might also consider the following operational questions:
- Are sources of income varied and/or complex (e.g. restricted, grants, etc.)?
- Do specific reporting requirements or stipulations exist?
- Are donor classifications in net assets properly managed?
- Is compliance being met to retain current statuses (i.e. tax-exempt)?
In summary, some of the key potential benefits gained from outsourcing bookkeeping are listed below:
- Lower overall cost for bookkeeping services
- High-level advisory (and/or specialty) assistance
- Increased knowledge of business opportunities and growth
- Greater availability
- Reduced fraud and error attributed to increased separation of duties
Please contact the professionals at Gilliam Bell Moser if you have any questions.
The size and complexity of an organization’s transactions will be essential factors in determining its bookkeeping requirements. My friend is planning to hire a bookkeeper for her flower shop business. She can’t handle all the posting and financial computation alone.
Hmm… since my wife will be working alone at her office throughout this week, I wonder who’s gonna look after the company’s financial record. Thanks to you, I now realize that compared to hiring an internal bookkeeper, outsourcing can be a more economical option for smaller businesses. I guess this is the kind of alternative she should consider by contacting an accounting agency for more info.
Thanks for telling me about outsourcing bookkeeping services through this article which is very helpful for me. For the past 1 week, I am looking for something related to this and now I got it.
This article gives an in-depth examination of the benefits and drawbacks of hiring an outside firm to handle your bookkeeping, as well as suggestions for deciding whether or not this course of action makes sense for your business. The author offers advice on finding a reliable bookkeeper and discusses themes including reducing expenses, maximising productivity, and minimising errors.
Thank you! Glad you enjoyed the article.
I found it helpful when you said that the key to effective and accurate bookkeeping is by outsourcing bookkeeping to professionals. This is a good tip for small business owners who need to dedicate more time to other business matters that require their attention. I could imagine how they could save time when they hire a bookkeeping service since they won’t have to deal with bookkeeping tasks that they may be unfamiliar with.
Thank you for the feedback. Glad the article was helpful.
My husband will be working by himself at his office for the entirety of this week, so I wonder who will be in charge of maintaining the business’s financial records. Due to you, I now understand that outsourcing might be a more affordable choice for smaller firms than hiring an internal accountant. I suppose he should research this sort of solution by getting in touch with an accounting firm.
What caught my attention is when you said that compared to hiring an in-house bookkeeper, it is less expensive to outsource a bookkeeper. This is a good tip for business owners who need to get help in handling the finances of their operations. I could imagine how they could follow your tips to ensure that they could keep everything within the budget while their financial records are being taken care of.
You got my attention when you highlighted that you will spend less on outsourcing a bookkeeper compared to hiring an in-house employee. Many business owners will find this tip helpful, especially when they need to hire a bookkeeper while keeping everything within a budget. I could imagine how they could partner up with a bookkeeping team of experts to ensure that they would be provided with quality services.
You caught my interest when you mentioned that hiring an internal accountant would cost more money than outsourcing one. This advice will be useful to many business owners, especially when they need to engage a bookkeeper while staying within their budget. I could see how they may collaborate with a team of bookkeeping professionals to guarantee that they would receive high-quality services.