Many nonprofits operate under incredibly tight budgets. As a result, they tend to employ fewer staff members than a for-profit organization. More than not, the employees must juggle multiple roles to offset the limitation of staffing. Accounting is a time-consuming process that cannot be pushed aside when dealing with multiple responsibilities. Outsourcing accounting, payroll, and other organizational financial responsibilities allows your staff to focus on other areas of the organization. Once employees are no longer distracted by having to manage the finances, they can devote their time to mission-focused tasks such as building engagement, attracting more donors through fundraising efforts, and improving program development and delivery – all of which work to better the financial position of the organization.
When a nonprofit’s bookkeeping responsibilities grow enough to require the hiring of a part-time or full-time bookkeeper, many costs arise. By outsourcing accounting, a nonprofit removes the guesswork involved with determining their annual expenses. They start building a scheduled and recurring monthly payment for services improving their ability to plan the budget for the year. For the majority of organizations that work with limited and sometimes shrinking budgets, consistency in spending is very important.
While most nonprofits are tax-exempt, they still need to file tax returns each year for the IRS. Actually, the tax return for nonprofits is one of the most complicated returns to file as there are many rules around reporting revenue and expenses for 501(c)(3) organizations. Nonprofit organizations often can benefit from outsourcing their accounting, by freeing up staff to focus on the mission, getting the experience and guidance they need to reduce expenses and increase revenue while ensuring compliance and tax readiness.
Layne R. McDaniel, CPA, LLC is a professional accounting firm concentrating in accounting and management services for nonprofit organizations. His experience as a CPA, in both public practice and industry, and as an active board member for numerous nonprofit organizations, gives him a unique insight into the operations and needs of nonprofit organizations. His dedication to hard work and commitment to his clients has earned him the respect of the business, philanthropic and nonprofit community. Layne is dedicated to providing his clients with professional, personalized services and guidance in a wide range of accounting and management services.
If you are interested in outsourcing your accounting functions, click the link below or call Layne R. McDaniel, CPA, LLC at 225.922.4746 to schedule an appointment today. Layne R. McDaniel, CPA, LLC offers accounting, management and tax services to nonprofits of all sizes throughout the state of Louisiana.