5 Benefits of Outsourcing Your Accounting Function

Making the choice to turn over something as important as your accounting can be a tough decision.  We hope to explain some of the compelling reasons you might want to hire an outsourced accounting department.  These points can help you determine what’s best for you and your business.

  1. The most important benefit of having an outsourced accounting team has to do with cost savings.  Outsourcing your accounting department saves you the costs of a full-time employee’s salary, employee benefits, accounting software costs, upgrading computers, educating your in-house staff and more!  When you add it up all, you’ll quickly see that an outsourced accounting functon is a very affordable and convenient option.
  2. The second benefit of outsourcing your accounting is the elimination of the hassle of IT maintenance and upkeep.  If you have an internet connection and a fax machine or a scanner – that is all you need to submit your accounting work to us for processing.  You can forget about annual software updates, learning new technologies, and paying to train staff on your accounting system.
  3. A third benefit of an outsourced accounting department is NO sick days!  You eliminate all the hassles of having in-house accounting staff.  No employee benefits to worry about, no calling in sick, no need to worry about employees being inefficient or worse ineffective!
  4. Another benefit you might find surprising is increased security and safeguarding of your financial data.  The systems we use are built and maintained in the cloud and offer the most secure platform available.  Hosting your accounting in the cloud is actually a lot safer than housing it on an on-premise server.  A survey from the Ponemon Institute revealed that 55% of small business owners have experienced a breach of private data. While many small business owners are aware that data breaches hurt business, most don’t appear to be taking action.  You don’t need to worry about that because every software solution we employ uses state of the art security and privacy features that most private servers can’t even begin to match.
  5. A final benefit of using an outsourced accounting service provider is just having peace of mind about your financials.  When you use a team of experienced US based CPAs you are able to rest easy that your accounting is up to date and compliant with all of the latest standards in your industry.  Using an outsourced team of CPAs provides you with a much greater breadth and depth of knowledge at your disposal than if you were to spend the same or more on an uncredentialed in-house employee.

We hope you found this article to be useful in learning more about how outsourced accounting services can help free you up to do what you do best, and can give you peace of mind about your books.  You get to keep your eye on the big picture while highly trained and experienced professionals handle all the details.  If you’re interested in continuing the conversation with us and getting started on your custom action plan simply respond to this email or give us a call toll-free today at (757) 926-4109.

Is your Not-For-Profit in a Relationship?

Knowing what forms a not-for-profit organization can be considered related to another entity is important as it affects what information must be disclosed in tax filings and financial statement reports.  A relationship with another nonprofit organization can take any of the following forms:

  • If an NFP organization has a controlling financial interest in another NFP organization, due to direct or indirect ownership of a majority of voting interest or sole corporate membership;
  • If there is control of a related but separate NFP organization, control being facilitated by having a majority voting interest  and an economic interest in the other NFP;
  • If there is an economic interest in the other NFP organization, and control through means other than those stated above;
  • The existence of economic interest but not control or vice versa.

Control is defined as the direct or indirect ability to determine the direction of management and policies through ownership, contract or otherwise.  Economic interest is defined as interest in another entity that exists if any of the following criteria are met:  the other entity holds or utilizes significant resources that must be used for the purposes of the NFP – producing either income or providing services; or the NFP is responsible for the liabilities of the other entity.

Nonprofit board members and Executive Directors or CEOs should keep these rules in mind when working with their outside CPAs on tax return filings and financial statement engagements such as audits, reviews and compilations.  Just knowing that these relationships affect reporting requirements will help the organization be compliant if management has open conversations with their independent CPAs.   Have questions or concerns about these rules?  Give us a call (757) 926-4109 we can work through it with you.

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