Not Just for Businesses: Why Your Charitable Organization Needs Outsourcing
Setting up a charitable organization is often an act of the heart. Whatever your organization's focus, it's part of a passion and mission that drives you. But that mission often comes with more paperwork than you'd anticipated, and you have concerns over making sure it's done correctly to avoid issues with government tax agencies.
Fortunately, you have options.
Whether your organization has been in operation for years or you're just starting on your paperwork, there's no doubt that 501(c)3 accounting can be a nightmare to the untried. You want to trust your volunteers to do the right thing with handling the books, but are worried that perhaps the paperwork isn't being done correctly. With your non-profit status on the line, what can you do?
When donations arrive, your organization is held to a higher level of expectation than when goods are purchased. Even when you have staff with some level of accounting experience, do you have a backup for that individual? What will happen to your non-profit's tax-exempt status if the paperwork can't be completed due to an emergency for that individual or if the paperwork is incorrect? Tax returns for non-profit organizations are considered to be one of the most difficult and complex returns in the United States. If your accounting is incorrect on top of that, you may be leaving your organization open to an audit and penalties.
Fortunately, many charities are now outsourcing their accounting work to ensure accuracy and free up their staff for more important tasks. Using an outside accountant also provides you with the benefit of that individual's experience, allowing them to guide your organization's financial strategy. This lets you take the best advantage of circumstances to elevate your mission.
By outsourcing your charitable organization's accounting, you can rest assured that everything that is being done is up to date with the current requirements and that it is being handled professionally. This allows you to turn your focus back to where your passion is - in your organization's mission. If you need help getting your charitable organization's bookkeeping set up or need to outsource the work, please feel free to contact the professionals at AccountRely today. We'd be happy to welcome your organization into our family.