As a nonprofit, your time and resources are limited. As a result, you need to focus on your mission and serving your community, not on administrative tasks. Did you know that farming out some of your financial processes can help you free up time and energy to focus on what you do best? In this post, Bayou Bookkeeping & Tax Services reveals the four most common financial processes nonprofits outsource.
Bookkeeping is one of the most common financial processes nonprofits outsource because it can be time-consuming, and requires attention to detail. Accurate and timely bookkeeping is the foundation of sound financial management. Bookkeeping tasks commonly outsourced include:
- making bank deposits;
- sending donation statements;
- entering and paying bills;
- creating journal entries and categorizing transactions; and
2. Financial Reporting
Financial reporting is another necessary financial process that nonprofits often outsource. This process can be complex and time-consuming. Moreover, many donors want to see that the organization’s leadership effectively stewards its money. Financial reporting tells that story, and many nonprofits publish the information to demonstrate transparency. Therefore, nonprofit leaders who aren’t skilled in financial reporting should use a professional financial services company to perform these types of tasks:
- Prepare financial statements
- Analyze financial data
- Ensure compliant reporting
3. Human Resource Management
Nonprofits don’t always realize they can outsource human resource management. Moreover, they don’t always view it as a financial process. Nevertheless, while human resource management involves people, it also involves a significant financial component. For instance, administrative time costs money. Also, donors like to know what percent of expenses goes to salaries, wages, and other administration.
Outsourcing human resource management to a professional services company gives you confidence. Specifically, you can trust that financial professionals will do HR tasks accurately and promptly. Additionally, you’ll enjoy the extra time it allows you to focus on what’s important: your mission.
Outsourced HR functions can include some or all of the following:
- Employee onboarding
- Time tracking
- Employee leave and accrual management
- Labor reporting
- State and federal law compliance
4. Payroll & Tax Services
Payroll, timekeeping, and payroll tax can be an administrative and financial nightmare. Think about how many tasks you have to manage:
- Benefit deductions
- Direct deposits
- Payroll deductions
Equally important, a minor payroll mistake can balloon into a major ordeal. For example, a small oversight could result in penalties, fines, and fees if you’re not careful. Also, the payroll process is timely and cumbersome, especially for a novice. If you get anxiety over the thought of these payroll tasks, you should consider using professional financial services. You’ll carry less financial stress and more intention toward your mission if you do.
Enjoy More Time for Your Mission
If financial processes have you stressed out, consider outsourcing them to Bayou Bookkeeping & Tax Services. After all, you get more time for your mission when you outsource. Therefore, spend less time administering and more time championing your cause. Finally, save money with one of our monthly membership packages. Call (225) 442-1137 in Baton Rouge or request a consultation to learn more.