Non-profits are very rewarding ventures. They provide useful services and options for communities. However, finding the correct balance between serving the communities and running the business-aspect of the non-profit can often be difficult. Ultimately, sufficient amounts of funds must be invested in the non-profit itself so that it may continue to operate, and in the long run, continue to provide more aid and services to communities. A key issue in finding this balance is whether or not one should hire a professional accountant to manage finances or simply invest in software in order to manage one’s own finances. Some may argue that the software is a better idea, because it is a simple and cheap solution. However, there are many advantages of having a professional services over internal software.
Most organizations believe that an accountant will cost their agency more money than just an internal approach, however the truth is, if you pick the right accountant, the accountant should save you money in the long haul by:
- Providing you with valuable money-saving strategies and suggestions.
- Linking an organizations to other professionals such as bankers, lawyers, payroll services, and even contractors, pest control specialists, etc.
- Providing more up to date information so that management and the organization’s board can make more timely and intelligent decisions throughout the year.
- Identifying control and operational weaknesses to mitigate fraud and regulatory take backs in the event of an audit
- Assistance in identifying organizational trends, such as spending in excess of budgetary limits, that can help your organization become more efficient
Having internal data provided by financial data is great, but an accountant adds the business acumen necessary to interpret that data and provide meaningful advice you won’t get from a software package. The right accountant can offer real value to an organization, which is particularly important in today’s economic climate.