Successfully Outsourcing Your Accounting Function

Successfully Outsourcing Your
Accounting Function
Pam Williams and Marci Moore
December 4, 2013

Twitter Hashtag - #4Glearn
Part
Of:

Sponsored by:

INTEGRATED PLANNING
Advising nonprofits in:
• Strategy
• Planning
• Organizational Development

Part
Of:

www.synthesispartnership.com
(617) 969-1881
info@synthesispartnership.com

Sponsored by:

Coming Soon
Part
Of:

Sponsored by:

Today’s Speakers

Pam Williams and Marci Moore
Co-Founders
Nonprofit Finance Pros
Jamie Maloney
Community Developer, 4Good
Part
Of:

Founding Director of Nonprofit Webinars and Host:
Sam Frank, Synthesis Partnership

Sponsored by:

Successfully
Outsourcing Your
Accounting Function

www.nonprofitfinancepros.com

TAKEAWAYS:

3 Advantages of Outsourcing Your
Accounting Function
3 Questions to Ask to Determine if
Outsourcing is Right for Your Organization
How to Find the Right Outsourcing Solution


POLL QUESTION 1:
 How many people on the call are involved with
organizations with budgets less than $1M?
organizations whose budgets are greater than $1M and less
than $3M?
organizations whose budgets are greater than $3M?


POLL QUESTION 2:

What is one accounting function that can
be successfully outsourced?


When Good Outsourcing Efforts Go Bad:
3 Examples


POLL QUESTION 3:

In your opinion, what is the greatest
advantage to outsourcing all or part of
the accounting function?


3 Advantages of Outsourcing :
Cost-effectiveness
Strengthened internal
controls and improved
segregation of duties
Peace of mind


Is Outsourcing Right for Your Organization?
Does the level of
financial complexity
require a full-time staff
person or someone in
the office on a daily
basis?

Do you and your staff
have the discipline it
takes to manage
schedules and
deadlines with an
outside firm?

Do you need more skill
and expertise than your
current staff can
provide, but lack the
funds to hire a full-time
accounting staff
person?

Finding the Right
Outsourcing Solution
1. Understand and
clarify your
needs and
budget before
beginning your
search.

Questions to
Consider:
a) What functions will you outsource
(i.e. all functions, oversight,
financial statement preparation,
accounts payable, grants
management)?
b) What level of involvement will the
outsourcing firm have with your
board?
c) What level of daily/weekly/monthly
communication is right for your
needs?

Finding the Right
2. Cast a wide net
to find a firm that
is right for your
needs

Use Your Network:
a) Other Nonprofits – who are
they using and what is their
level of satisfaction?
b) Your CPA Firm
c) Your state or national
association
d) Other professionals who do
business with your
organization(i.e. attorneys,
fundraising consultants)

Finding the Right

3. Interview
firms for
competence
and “fit:”

Questions to
Consider:
1. What is the firm’s experience working
with organizations of your size and
complexity?
2. How does the firm stay up to date with
changing nonprofit accounting
regulations and guidelines?
3. What kind of lead time does the firm
require for scheduling meetings or
projects and what kind of access will
you have to the person responsible for
your accounting work?
4. Who will work on your account, and
what will happen if there is turnover?
5. What are the
www.nonprofitfinancepros.com results of their clients’

Finding the Right
4.

Conduct
thorough
reference
checks before
making a final
decision.


Finding the Right

5. Ensure that you
fully understand
the proposal and
your
responsibilities.

POLL QUESTION 4:

In your opinion, what are your primary
responsibilities after making the decision
to outsource?


What timelines
and deadlines
are required on
both sides?


How up to date
will your
accounting
records be
maintained?


Is there a setup
fee involved?


What access will
you have to your
accounting
records?


If paying a monthly fee,
what is included?
What is considered
outside the scope of
the engagement?
What are the fees for
those services?


What kind of time
will it take for the
firm to get up to
speed?


How will data and
information flow
and where will
work be
performed?


What other
expectations
does the firm
have of you and
your staff?


Your Partner in CFO Search & Financial Transitions
727-393-2341


Successfully Outsourcing Your Accounting Function

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