If there is money, there is bookkeeping; the math is actually quite simple. You may think that non- profits don’t need virtual bookkeeping or accounting services, but you couldn’t be further from the truth. Non- profits see a lot of money coming in by way of donations and grants, and unless the money is recorded and watched, there are chances the organisation will be embezzled or worse. Besides there is the IRS to answer to.
Now while bookkeeping for all types of organisations are the same, there are a few differences. Non- profit organisations have to provide a Statement of Activities instead of an Income Statement like for- profit businesses. There are no owner’s or stockholder’s equity and distribution as there are technically no owners for non- profits and they can request the IRS to be exempted from taxes.
So why do non- profit organisations require virtual bookkeeping services? Here is why.
- You don’t have to arrange for office space, buy new equipment or worry about a number of taxes like employment taxes and benefits. All that means you get to save a lot of money.
- Your books will always be up-to-date and accurate.
- Virtual bookkeeping service providers are more flexible. You can use their services based on your need and how much work you have. You do not have to worry about keeping them occupied for an entire or half work day.
- You don’t have to worry about your bookkeeping. You can focus on your organisation’s cause and raising funds for it while your bookkeeper takes care of how and where the money flows.
- Bookkeepers are trained to watch cash flow, identify trends and patterns; as a result they can help you make informed business decisions and show where you can save money as well.
You cannot help people or change the world if you end up having to shut down or don’t have sufficient resources, so make your decisions wisely.