Like any organisation that handles cash flow, and pays taxes, non-profits should engage with professionals to manage their accounts.

Unfortunately, many non-profit organizations don’t allocate resources for a professional accountant to manage their finances. Instead, they assign the task to an untrained staff member or volunteer. This is one of the costliest mistakes not-for-profit organisations make.

One of the common problems is that non-profits run the risk of fraudulent activity if the bookkeeping and accounting are not carefully managed. This is often unintentional, through oversight or lack of experience. Volunteers, who often make up a large part of a non-profit’s staff, may leave the organisation with short notice, which can cause gaps in record keeping.

Hiring a professional, ensures that someone with training and experience is always paying attention to the accounts and is in a much better position to notice something that an untrained employee may miss.

For example, many organisations meet the requirements that release temporarily restricted funds, but don’t have the awareness of this, as no one is keeping track. Maintaining up-to-date records allows for the management to have a better idea of what funds are available to better budget their operating needs and make accurate decisions.

One of the many benefits of using outsourced Bookkeeper and Accountant to manage the NFP books, is that they are independent of the organisation. During the yearly audit, having independent person managing accounts, provide auditors with increased comfort when the books are audited due to a lesser risk of fraud. This compares very favourably with someone tasked with managing the books within the organisation

If you would like to discuss how Take Care Of Books may be of help to your organisation, get in touch with us today for a free and confidential consultation.