5 Benefits of Part-Time Accounting Services for Not-For-Profits
Financial management for all corporations and organizations involves analyzing, evaluating, planning, forecasting, implementing, monitoring, and controlling the use of funds. However, for Not-For-Profit organizations, ensuring the financial and accounting records are being accurately and transparently managed is of even higher importance because of public, donor, and corporate funding.
The challenges that many Not-For-Profits face when it comes to adequate financial management is the lack of in-house resources and budget to hire a qualified financial professional full-time. This is where the solution of fractional financial management and accounting services can make a huge impact on an organization. Part-time advisory, project-based work or fractional services allows NFPs access to the expertise they require, at the fraction of the cost of a full-time employee. It enables them flexibility when it comes to services and budget.
Below, we will break down the various benefits of enlisting a fractional financial expert to manage the ins and outs of an NFP’s unique and challenging financial and accounting demands.
1. Project-Based Initiatives
With part-time financial management, organizations have the ability to hire on an as-need basis based on their specific financial requirements at any given time. This could include tax reports, financial statements for the board of directors, quarterly reviews, capital project funding, cash flow management or any other financial obligation. The financial requirements for NFPs come with many unique differences compared to a For-Profit organization. With part-time financial management services, organizations can gain the peace of mind that when a challenge arises, they have access to the expert solution.
2. Flexibility of Services and Budget
Not all financial matters work on a project-based framework. Many financial and accounting matters require ongoing, consistent support and management. Fractional financial management allows for organizations to work with a seasoned professional on a customizable, flexible basis. An organization may only need a few hours a week of assistance or would only like management services once a month or even on a quarterly basis. Part-time accounting services allow NFPs to tailor what ‘part-time’ looks like on their terms and within their budget limits. This complete flexibility gives organizations the confidence that they are not getting roped into complex or expensive contracts that they cannot get out of in the future.
3. Communication with Board of Directors
Anyone who has worked with a Not-For-Profit organization knows that the Board of Directors is the force behind what guides the mission forward. They are a group of successful, strategic, and tactical professionals who each bring a unique skillset and expertise to the organization. At times, there is a void that can emerge in the communication between the Board of Directors and the Executive Director or management team. This communication gap could be detrimental when it has to do with the financial management of an organization.
Fractional financial professionals can fill that void and ensure that the airways between all parties involved in the function of an NFP do not get crossed or misinterpreted. Having an expert communicate the financial results and outlook of an organization ensures all parties have a clear understanding of the financial status of the organization. The part-time basis of the service allows for an organization to have an expert professional available for quarterly meetings, Board discussions or reviews or any other type of communication session.
4. Non-Committal Expert Services
Due to the unstable landscape of the past year, organizations of all types are reconsidering their pre-existing working arrangements and relationships to ensure they are protected during turbulent times. An instrumental benefit to NFP’s when working with part-time financial professionals is the flexibility and non-committal agreement terms. You pay for the services you need, only when you need them and without the hassle or stress of a complex and sticky contract. If an organization has the funds and the need for further financial management and accounting services, they can customize fractional professional services to fit their needs. If times are tough and an NFP needs to cut back on additional expenses, they can postpone or cut back on what financial management services they are receiving to fit within their budgetary restrictions.
5. Tailored Services Based on Specific Needs
Each individual Not-For-Profit has unique and varying financial and accounting demands and objectives. Based on their mission, donors and Board of Directors, each NFP presents significantly different financial requirements. Fractional management delivers service customization based on an organization’s unique needs, goals, and mission. Part-time financial professionals have the expertise to identify and understand how to develop and cater their services to these specific needs. This ensures that an NFP is not only receiving adequate financial management, but also accounting services that will advance and strategically benefit their precise mission and goals.
Part Time CFO has identified the need for specialized, expert professional financial services within the Not-For-Profit sector. We have created a dedicated division that offers part-time, flexible solutions to the unique challenges that NFPs face with the demands of their financial management processes. At Perspective, we understand that Not-For-Profit’s often don’t have the in-house resources or budget to hire the level of financial expertise that is required full-time. Our Part-Time Financial Management services provide NFPs with access to seasoned financial experts on a project-based, flexible, and cost-effective basis. Please don’t hesitate to reach out to discuss our services further.