There are more than 1.5 million nonprofit organizations registered in the U.S, which employ over 11 million people. As a nonprofit organization, you operate under unique conditions including limited budgets and comply with special requirements to maintain your tax-exempt status. Find out why hiring an accounting professional can be beneficial for your organization.
How an Accountant Can Benefit Your Nonprofit Organization
1. They Help Keep the Cost Low
Accountants will use their experience and knowledge to help make the best financial decisions for your nonprofit organization. This will help ensure funds are distributed where necessary and you can be as cost-effective as possible to reach your goals.
2. Help Make Decisions
Financial experts will assist you in making tough business and financial decisions, allowing you to focus all your energy on the goals and priorities of the organization.
3. Properly File Your Annual Tax Forms
When filing for your tax return as a nonprofit organization, the IRS requires that you file an annual 990 form. Filling out this form on time and correctly is important for nonprofits so they don’t lose their tax-exempt status.
4. Review Accounts
Nonprofit accountants will take the time to review all financial and business accounts to make sure there are no inconsistencies and that your organization is on track to reaching your goals.
Types of Nonprofit Accounting Services
1. Outsourced Nonprofit Accountants
Outsourcing a nonprofit accountant like the professionals at SL&C will help your team to save time and money so everyone can focus on the organization’s mission. In addition, it’s more cost-effective than hiring an in-house accountant, as it will help you save on Human Resources.
2. In-Kind Donation Accounting Services
For nonprofits who are just getting started and don’t have a big budget, accepting in-kind donations means you don’t pay for accounting services. This can be a helpful choice for startups, but as you grow, you’ll need to hire an outsourced or in-house accountant for more in-depth services.
3. In-House Accountants
Larger nonprofit organizations typically hire an accountant, while it can be a more expensive option, you know that you’re paying for their expertise and skills in the nonprofit industry.
If you need a qualified nonprofit accountant, contact the experts at Satty, Levine & Ciacco, CPAs P.C. We will help your nonprofit organization through the process. Visit our website today to view our services.