Nonprofit Organizations are a staple of our society. They often provide services to communities ranging from life saving to artistic. Many nonprofits focus on fundraising for disease treatments, education, politics, you name it. If there is a cause, there is bound to be a nonprofit organization that is working behind the scenes for the good of it.
What many people don’t consider, however, is that nonprofits are businesses too. They have to pay company costs and taxes just like the rest of us. The team at Margo’s know a thing or two about how outsourced bookkeeping can help nonprofits save money. Here’s how hiring a virtual CFO can benefit your nonprofit organization.
We Can Keep on Top of Your Tax Returns
The majority of nonprofits are tax-exempt. However, they still need to file tax returns each year. All revenue produced by the organization needs to be reported on a tax return. Sometimes that revenue is generated from a viable service. For example, a community theater or a museum. These types of organizations frequently collect donations to sustain their business. The donors will require receipts and information to write off the donations on their own returns. A remote bookkeeper can help by handling and organizing these tasks.
Let’s Take Some Pressure Off of Your Staff
Let’s face it, nonprofits are typically on a very tight budget. Because of this, they usually will employ fewer staff members. Consequently, staff members will tackle multiple responsibilities including all things accounting and bookkeeping. The staff at Margo’s Bookkeeping knows all about the time consumption of the bookkeeping process. Your staff needs to focus on the business of your organization. Hiring a bookkeeper will free up a considerable amount of time allowing your staff to focus on maximizing the funds of your agency.
Cut Your Labor Costs
Sometimes the business of a nonprofit will increase. A virtual CFO is indeed necessary if the organization wasn’t prepared for it. Under those circumstances, there will be a need for a full-time or part-time bookkeeper. When that happens, however, the nonprofit’s costs can go through the roof. Portions of the nonprofit’s costs will then go towards:
- The bookkeeper’s salary
- Software/hardware costs
- Health Insurance
- Social Security/Medicare/Unemployment Taxes
- Office Space adjustment
A virtual CFO, however, can eliminate most of this. Agencies that utilize remote bookkeeping typically see an overall reduction in costs and expenses. Virtual CFOs can also build a financial schedule for the nonprofit that will help budget all costs throughout the year.
Let MM Accounting and CFO Solutions Help Your Nonprofit
The team at Margo’s is eager to help any nonprofit organization that they can. They provide vital services for the community at large. Helping them save time and money is something we are proud to do. Call Margo’s today to discuss our remote bookkeeping services.