Managing a nonprofit’s finances is no small task. As an executive director, you have a mission to focus on, fundraising to manage, and programs to oversee. However, ensuring accurate financial records is just as crucial to the success of your organization. QuickBooks Online (QBO) is a popular accounting software that many nonprofits use to track donations, expenses, and grants, but should you take on the responsibility of learning it yourself, or is outsourcing to an accountant the better choice?
In this article, we’ll explore the pros and cons of both options to help you make the best decision for your nonprofit.
QuickBooks For Nonprofits
Pros:
- Cost Savings – By managing the books yourself, your nonprofit avoids paying professional accounting fees.
- Increased Financial Awareness – Being hands-on with your organization’s finances can give you deeper insights into spending patterns and cash flow.
- Immediate Access to Financial Data – You won’t have to wait for an accountant to generate reports when you need real-time financial information.
- Flexibility – You have control over your financial records and can adjust them as needed without relying on an external professional.
Cons:
- Time-Consuming – Learning and managing QuickBooks Online can take significant time away from fundraising, program development, and strategic planning.
- Risk of Errors – Without accounting expertise, it’s easy to make mistakes that could impact compliance, tax filings, or grant reporting.
- Compliance Challenges – Nonprofits have specific accounting rules (such as tracking restricted vs. unrestricted funds) that can be complex to navigate without professional guidance.
- Lack of Strategic Financial Insight – An accountant can provide valuable advice on budgeting, forecasting, and financial sustainability, which you might miss when doing it yourself.
Outsourcing To an Accountant
Pros:
- Expertise and Accuracy – Professional accountants understand nonprofit accounting regulations and can help maintain accurate records.
- Time Savings – Outsourcing allows you to focus on mission-driven work while an expert handles your financials.
- Compliance and Reporting – Accountants ensure financial statements are compliant with IRS regulations and grant requirements.
- Strategic Financial Guidance – An accountant can provide insights on cash flow management, budgeting, and financial health to help you make informed decisions.
Cons:
- Cost – Hiring an accountant can be expensive, especially for smaller nonprofits with limited budgets.
- Less Control – You may have less immediate access to your financial data or may need to wait for reports from your accountant.
- Finding the Right Fit – Not all accountants specialize in nonprofits, so it may take time to find a professional who understands your needs.
Which Option is Right for Your Nonprofit?
The right choice depends on your nonprofit’s size, budget, and internal capacity. If you have a small organization with limited transactions, learning QuickBooks Online might be feasible. However, if your nonprofit receives multiple grants, tracks restricted funds, or needs detailed financial reporting, outsourcing to an accountant can provide peace of mind and ensure compliance.
Some nonprofits find a middle ground—learning the basics of QuickBooks Online to track daily transactions while outsourcing financial reviews, tax filings, and audits to an accountant.
Why Outsourcing to Us is the Best Choice
At Complete Balance Accounting & Consulting, we specialize in nonprofit accounting, ensuring accurate financial records, compliance, and strategic financial guidance. By outsourcing your accounting to us, you can focus on what truly matters—advancing your mission and making an impact.
Don’t let accounting distract you from your nonprofit’s mission. Contact us today to get started with expert nonprofit accounting services tailored to your needs. And if you're still interested in learning QuickBooks Online yourself, stay tuned—later this year, we’ll be offering a comprehensive course on DIY nonprofit accounting!
Let us handle the numbers so you can focus on making a difference.
