Never worry about accounting again. We provide fully outsourced accounting services for your nonprofit organization, from transaction processing through 990 preparation.
Why Should I Outsource My Nonprofit’s Accounting Function?
There are a lot of reasons to outsource your accounting function, but they all lead to one core benefit: allowing you to focus on more important things. Here are a few of the specific reasons we think it’s a good idea:
Out-of-the-box best practices
Reduction in recruiting, training and other costs that come with hiring employees
Reduction in business risk resulting from employee turnover
Improvement of the internal control environment
Reduction in capital outlay for equipment and software
Minimization of compliance risk
How Much Will Outsourcing My Nonprofit Organization’s Accounting Cost?
The cost of outsourcing your nonprofit organization’s accounting function depends on the size and complexity of your organization and the services you need us to perform. You can get an online price estimate for your nonprofit organization, or if you want to get a firm price quote, contact us and, with a little information, we can provide one. Here are some examples of typical plans, but we can tailor something specifically to your organization:
How Does the Process Work?
How the process works will vary by organization. Click on each of the tabs below to see the typical steps:
Here we’ll spend some time getting to know each other. This will help us get the information we need to build a proposal for you, and will help you get any information you need to get comfortable with us.
- We’ll send you a non-disclosure agreement for review, and we’ll sign it when you’re ready
- You complete our new client questionnaire, which will provide answers to most questions we’ll have
- You provide us your most recent accounting information, including tax returns, financial statements, etc. We’ll let you know what we think we’ll need based on responses in the questionnaire
- We have a conference call to address any questions we have about the information provided, and any questions you may have about us or our services.
Engagement Decision Making
Now you’ve got the information you need to make your decision. It’s time to noodle it.
- We provide a draft agreement that includes the proposed scope of the engagement, the data migration plan, the pricing and other terms and conditions
- You evaluate the proposal and, once you’re comfortable with the terms, return the executed agreement to us
Now you’re on board and it’s time to move. We’ll get all the infrastructure set up that we’ll both need to make this a successful partnership.
- We analyze your chart of accounts, and an optimized version is set up in our accounting system
- You connect your bank and credit card accounts to our accounting system. This will help us ensure all your transactions are captured and will simplify the reconciliation process
- We set up accounts and approval workflows with our third-party invoice and payment processing service provider. This service will host the software used for the approval workflow, house electronic versions of supplier invoices and related documents, and make the actual payments to your suppliers
- We set up accounts and approval workflows with our third-party payroll payroll processing service. This service will manage payments and compliance, and we’ll be responsible, with your help, for ensuring the right data gets into the system
- We set up secure document sharing accounts specifically for your organization to allow for secure information transfer
- We set up other systems, such as timekeeping, T&E processing, etc., if necessary
Accounting Data Migration
The fun is beginning! We’ve got your infrastructure set up and it’s time to start bringing your data to its new home!
- We use your tax returns, financial statements, bank reconciliations, accounts payable ledgers, accounts receivable ledgers and other pertinent data for the most recently ended month to calculate beginning balances, which are then entered into our accounting system
- We re-enter open transactions, such as outstanding checks, open supplier bills and open customer invoices, as of the end of the most recently ended month, into our accounting system as open transactions.
- If applicable, we enter your fixed assets into the fixed asset system. Depreciation is recalculated cumulatively through the prior tax year and through the most recently closed period and we reconcile the calculations to existing records
- If applicable, we enter inventory quantities into the inventory system in their appropriate original cost buckets
- All the other data we’ll need, like supplier and customer information, is migrated into our accounting system so transactions can be processed without a hitch
- We enter or migrate employee census and withholding information into the Payroll system. If necessary, YTD earnings and withholding information is also migrated or entered
Some change is coming (hopefully all for the better!), so we better make sure we let everyone know what’s happening so we can minimize unpleasant surprises.
- We notify suppliers to begin sending invoices to a specified e-mail address in electronic form
- We’ll contact customers who do not pay electronically and provide them with information necessary to begin making electronic payments, if desired. They will also be notified of our preference to deliver the invoices electronically, either by e-mail or directly through a web portal
- We’ll notify your employees of the change in payroll providers and, if applicable, a different method of payment for travel reimbursements
Banking and Credit Cards
We want to have a good base, and that all starts with the cash and credit transaction flow.
- Bank and credit card transactions are automatically downloaded into our software periodically and matched to other transactions already recorded, such as check payments, or are recorded as new transactions
- Bank deposits should be detailed on our Bank Deposit List form as they occur, and you provide them to us electronically within two business days of the deposit
- We’ll perform account reconciliations for all bank and credit card accounts on a monthly basis
We’ll want to make sure your suppliers get paid on time and that you can see everything that’s happening.
- Invoices are sent directly from your suppliers to a pre-established e-mail address tied to your account at our third-party service provider
- We enter accounting information necessary to process the transaction, such as charge code, invoice number, amount, etc., and electronically route the invoice to you for approval
- You review the routed invoice, and approve it or reject it. You’re approval will tell is it’s ready to pay with the next payment cycle
- Each week we send a proposed payment listing to you, outlining invoices that are in the queue to be paid. This list will only have approved invoices on it, and will only contain invoices that are due within a predetermined number of business days
- We review your current bank balances to ensure sufficient cash is available to make the scheduled disbursements. Any shortfalls will be communicated
- The total amount of the approved disbursements will be deducted from your bank account shortly before disbursement
This is your bread and butter. Our process will be set up to get you paid as quickly as possible.
- Customer invoice data used to populate invoices is provided by you or, in the case of data coming from an interfaced system, is automatically fed into our accounting system
- We generate draft invoices and make them available to you for approval once per week
- Once approved, the invoices are sent by us directly to your customers
- Payments are delivered directly to the your bank account electronically (our preference), or by check directly to your address of choice
Doesn’t get much more critical than this! We’ll get things set up to make sure you and your staff all get paid when they’re supposed to
- You provide information on new hires, terminations or compensation changes as they occur
- Timesheet information, already approved by you, is sent electronically to our payroll service provider
- A preliminary payroll register is generated and reviewed by us for accuracy and completeness
- The preliminary payroll register is made available to you for your final approval
- Once approved, the payroll is submitted to our service provider as final
- The funds for net payroll and tax withholding are deducted from your bank account prior to payday
- Direct deposit payments are initiated on or before payday, and payroll checks are mailed
Making and receiving payments are big pieces of the puzzle, but there are some other things to wrap up before we can call it done.
- We record depreciation expense on your fixed assets
- We record amortization of prepaid expenses and similar items
- We prepare reconciliations of all the key financial statement accounts, including cash, credit cards, fixed assets, prepaid expenses, accounts payable, accounts receivable, and payroll liabilities
- We’ll review your draft trial balance for the period in an attempt to scare out anything that doesn’t look quite right.
Transaction processing has to happen, but what’s really important is for you to be able to see what’s going on with your business. To help you do that we’ll provide you with these reports from the accounting system to look over:
- Statement of cash receipts by customer and disbursements by vendor
- Statement of revenues and expenses
- Statement of assets and liabilities
- Accounts payable aging, by vendor
- Accounts receivable aging, by customer
Frequently Asked Questions
We offer periodic accounting support services at an hourly rate, or accounting maintenance plans at a fixed monthly cost that will fit within your budget.
Audit got you a little nervous? We can help. We’ll analyze your financial statements, reconciliations, and other information and report back on our findings.
We provide implementation services and functional support for many accounting systems, including a transition from a server-based solution to QuickBooks Online.
Tax Exemption Reinstatement
Losing your tax-exempt status can be catastrophic. We’ll work with you and the IRS to get it reinstated.
8:30am – 5:30pm
8:30am – 5:30pm
WANT TO LEARN MORE?
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