How can an accounting partner help your nonprofit overcome common challenges?
The world of nonprofits is comprised of many different types of organizations. All 501c organizations face challenges that are unique to the nonprofit sector. One thing that all nonprofits have in common is the need for high-level accounting and financial oversight. Not having your accounting and finances in order can impact how effectively you are able to raise funds and grow your nonprofit, and these are areas where a nonprofit accounting partner can help:
- Audit Requirements
A nonprofit audit will examine an organization’s financial statements and processes to ensure accuracy and compliance with the requirements of a tax-exempt entity. Your organization may have to conduct an annual audit once your organization has reached certain revenue or asset thresholds. The thresholds depend on the state in which your nonprofit is incorporated. Are you currently prepared for an audit? Do you have a PBC checklist from your auditor specifying the documents and schedules required? There are ways to ensure that your audit can be performed as stress-free as possible.
2. Accurate Reporting
Properly tracking every accounting transaction is crucial to ensuring data integrity, which is critical to achieving organizational success – not only for maintaining your tax-exempt status but also to increase stakeholders’ trust and enhance your ability to effectively manage your nonprofit. You should begin with a well-structured Chart of Accounts that will allow you to track key performance indicators and provide the data needed to make sound strategic decisions. For tips on how to set up your Chart of Accounts for success, read our blog here.
3. Nonprofit Watchdogs
Watchdog groups dig into your organization’s IRS Form 990. They then share reports on their findings and rate your nonprofit based on how accountable and how transparent you are with your financials. Many potential donors and grantors use these nonprofit watchdogs to decide which organizations they will support. Are you confident in the documentation provided in your Form 990? Learn more about Nonprofit Watchdogs on our blog.
4. Limited Resources
As a nonprofit you may not have access to all the resources you need. There are many key functions when it comes to running your nonprofit smoothly and you may be tempted to cut corners on back-office operations to invest more resources in the mission. That’s understandable. However, overlooking core operations that can have a significant impact in the success of your nonprofit can be penny-wise and pound-foolish. Nonprofit leaders often feel like they cannot invest in the ideal solution because it is either too costly, or the specific expertise needed is hard to come by, but there are other options to ensure you can have both cost-efficiency and the expertise you need.
Identifying an experienced outsourced accounting partner can make all the difference between staying afloat or drowning in a sea of erroneous data. Finding and trusting the right partner that can expertly navigate the ins and outs of your nonprofit’s accounting can be a challenge that impacts not only your operations, but your funding as well.
You may be hesitant to hire an outside firm to handle your accounting and finance function. As a nonprofit leader you may be wondering, what if they are not working with nonprofits exclusively and don’t understand my needs? How can I trust they will be there when I need them? How can I overcome the challenges with someone that is not in-house? What about the cost? Wouldn’t it be cheaper to have a volunteer, or a part-time accountant, help me figure out our finances? Will they help me prepare for our audit? We get it. These are some of the questions we hear often when talking to nonprofit leaders who understand the importance of having the right expertise to handle their organization’s finances. Through years of serving the nonprofit sector exclusively, we have honed our services to ensure we can put your mind at ease and develop a strong partnership with each of our clients. We call this “The Chazin Way.”
What is The Chazin Way?
Chazin & Company has been working exclusively with nonprofits for over 17 years. Accounting is our business, but nonprofits are our passion. We pride ourselves in having a unique understanding of your accounting and reporting needs, no matter how big or small. Each of our accountants are Certified Nonprofit Accounting Professionals (CNAP) and are updated and trained regularly on nonprofit accounting best practices and the changes to GAAP and FASB requirements that impact nonprofits.
We offer a flexible business model to fit your organization’s specific accounting needs. We believe that nonprofits deserve personalized, quality service and should not settle for a one-size-fits-all approach. We collaborate with you to provide a customized solution that is not only cost-effective, but also improves your accounting function. Whether you need a little help or a lot, our expertise ranges from bookkeeping and accounting to CFO and advisory services to fit your specific needs. To learn more about how we can tailor to your specific needs and what services we offer, visit our services page.
Your Chazin & Company team is accessible every workday – not just certain times of the week or month. We combine proactive and personalized service with tailored communication processes to cultivate a collaborative partnership, so you feel like we are just down the hall.
Still have some questions about outsourcing your accounting function or The Chazin Way? Our team is always here. Reach out to Chazin & Company to schedule your free consultation.