Outsourced Accounting

Why outsourcing your nonprofit accounting function?

There are many reasons, but all will lead to an important advantage: allowing you to focus on your organization mission and let seasoned professionals worry about the numbers.

  • Improvement internal control environment
  • Maintain organization compliance with ever changing accounting rules
  • Reduction of training, recruiting and other cost related to hiring new employee
  • Reduction of risk of accounting record inconsistency due to employee’s turnover, a fundamental step to ensuring best independent audit reports
  • Professional expertise to ensure compliance with financial and regulatory requirements

Our Outsourced Services Process:

Each organization is unique, depending on your situation and specific needs we can support the entire accounting cycle of your nonprofit. If you are just starting up, we can help you setup your chart of accounts as well as select a suitable accounting software and other technology platforms to satisfy your nonprofit current and future needs. For more established organizations, we study the process for financial transactions and then come up with standard procedures, which are cost efficient and also adhere to best practices in internal controls.

Our Process

Stage 1

Information Gathering:

We will spend time getting to know your organization and understanding your accounting system strengths and weakness. During this initial phase we will ask you to analyze your organization current accounting records and processes as well as gathering audit reports, tax return and any other relevant document. At this stage we will suggest accounting processes updates and technologies that can benefit your nonprofit. During this pre-engagement phase we will develop a proposed engagement objective and scope and identify deliverables and responsibilities. At the end of the information gathering process, we will provide a draft agreement with the scope of the engagement with pricing, terms and other conditions. Once you approve the agreement, we will move to Stage 2.

Stage 2

Client Setup:

Now that you are on board, we can start the work. Depending on your specific situation we will either begin the accounting data migration to our platforms or take over your current accounting system and processes. During this phase we set up account payables, account receivables and payroll approval workflows. At this stage communication is of the essence: we will keep a line of communication with anyone effected including you, your staff and your customers and vendors.

Stage 3

Regular Transaction Processing:

Depending on the deliverables we have agreed upon in the engagement, we will process your accounts payable, account receivables and payroll for your staff. We use platforms that allows to pay your vendors via ACH if so desired as well as receive online payments from your customers and members. Our objective is to leverage technology to streamline and reduce cost associated with accounting. Using the best technology avoids a lot of cross communication within and outside the organization.

Stage 4

Monthly Closing:

As part of the monthly closing, we post all transactions to the general ledger as well as linking your banking information to the general ledger to produce bank reconciliation. We create reconciliation workpapers for every account to ensure accuracy and audit trail.