The episode highlights how outsourcing your charity's bookkeeping saves time, reduces financial risks, ensures accurate tax filings, provides access to better software, and offers expert advice.
The episode highlights how outsourcing your charity's bookkeeping saves time, reduces financial risks, ensures accurate tax filings, provides access to better software, and offers expert advice.
Dov Goldberg is a manager partner at B.I.G. Charity Law Group Professional Corporation, a Charity Law Firm Providing Services Exclusively to Charities Across Canada
What is The Canadian Charity Law Podcast ?
Exploring the ins-and-outs of Canadian Charity Law in a way that can be understood by the layperson, including Charity Registration, Not-for-Profit Incorporation, Charity Governance, Charity Fundraising, Tax Receipting, and much more!
David:
Everyone. Welcome back to the Deep Dive. Yeah. So today, we're, we're diving into a question that I think a lot of people running charities have probably thought about at some point. Yeah.
David:
And that is, should you outsource your bookkeeping? Yeah. We've got some really interesting articles and expert advice to kinda wade through here and see if we can help you figure out Yeah. What the right answer is for you. You know, one of the things that jumped out at me right away in one of these articles is they said 40% of small business owners find bookkeeping and taxes to be, like, the hardest part of their job.
David:
Right. And I have to imagine that for charities, with all of the kind of regulations and donor reporting and all that kind of stuff.
Sarah:
All the rules.
David:
That number's gotta be even higher. Right?
Sarah:
Yeah. It's definitely a pain point. Yeah. And it makes sense. You know?
Sarah:
You're so passionate about the mission of your charity. You put so much energy into it, and then you have to deal with all the spreadsheets and receipts. Oh. Yeah. It takes you away from, you know, what you really wanna be doing.
David:
Totally. Every minute you spend on bookkeeping is a minute you're not spending on, you know, writing grant proposals or organizing fundraising events or, you know, connecting with donors. Yeah. Like, imagine if you could get all that time back.
Sarah:
Right. Well, that's where the idea of outsourcing comes in. I mean, think about it. What could you achieve if you had an extra, like, 10 hours a week? You could launch a new program, maybe Yeah.
Sarah:
Expand your volunteer base or even just have more time to think strategically about the future of your organization.
David:
That's a really good point. It's all about, you know, maximizing your impact.
Sarah:
Mhmm.
David:
Right? Making sure that every resource
Sarah:
Right.
David:
Including your time is being used effectively.
Sarah:
Exactly. And it's not just about time either. Outsourcing can actually reduce risks significantly. Charities, especially smaller ones, can be really vulnerable to financial errors or even, you know, mismanagement.
David:
Oh, yeah.
Sarah:
You know, it's not always intentional.
David:
Mhmm.
Sarah:
But someone might be a fantastic advocate for your cause, but that doesn't automatically make them a skilled bookkeeper.
David:
That's so true. And, you know, I've I've heard stories of Terry's running into trouble because they just didn't have the right financial controls in place.
Sarah:
Mhmm.
David:
And that can really damage your reputation.
Sarah:
Oh, for sure.
David:
And even worse, it can jeopardize your ability to serve your beneficiaries.
Sarah:
Yeah. And that's the last thing you want.
David:
Exactly. So you're saying that a professional bookkeeper can kind of bring that level of expertise and objectivity?
Sarah:
Yeah. They can help you set up those internal controls, make sure your records are accurate, and spot any red flags early on.
David:
So it's almost like having a safeguard in place.
Sarah:
Yeah. Exactly.
David:
Protecting your charity's financial health.
Sarah:
Protecting you from making costly mistakes and making sure that you're operating transparently and accountably. And, plus, they're up to date on all the latest tax laws and regulations, which, you know, is so important for charities.
David:
Well, that's a good segue because speaking of taxes, that's another area where outsourcing can really bring peace of mind. Yeah. Because let's face it. Nobody enjoys dealing with those complex tax forms
Sarah:
Oh, no.
David:
Especially when you're dealing with, you know, specific regulations that apply to charities. It can
Sarah:
be a real nightmare, and the consequences of getting it wrong can be pretty serious. But, you know, with a professional handling your bookkeeping and taxes, you can just relax and have confidence that everything is being done correctly and on time.
David:
Okay. So that's gotta be a huge weight off your shoulders. Ew.
Sarah:
Yeah.
David:
And, you know, the best part is you don't have to be a tech whiz to benefit from all the latest accounting software these days.
Sarah:
Right. A lot of outsourced bookkeeping services use really sophisticated tools like QuickBooks ProAdvisor.
David:
Mhmm.
Sarah:
And it's not just about, you know, crunching numbers. It's about having access to real time financial dashboards, generating reports, analyzing your income and expenses easily.
David:
So you can actually gain insights from your financial data
Sarah:
Yeah.
David:
Instead of just being overwhelmed by it.
Sarah:
Exactly. Imagine being able to track your progress towards your fundraising goals or, you know, analyze the cost effectiveness of your programs or even just identify areas where you could be saving money.
David:
That's amazing. That's so cool. Yeah. So you can actually use that data to make, like, strategic decisions. Yeah.
David:
It's like having a financial GPS guiding you towards your goals.
Sarah:
That's a great way to put it. And speaking of guidance, one of the most valuable things about outsourcing is that you get access to expert advice and support.
David:
Okay.
Sarah:
It's like having a financial adviser who is totally dedicated to helping your charity thrive.
David:
So it's not just about the numbers. No. It's about the strategy too.
Sarah:
Exactly. A good bookkeeper can do way more than just, you know, balance your books. They can help you analyze your financial data, develop budgets that are actually realistic. Okay. And even give you insights on things like fundraising and how to allocate your resources.
David:
So you're really not just handing off a task. Right. You're gaining, like, a partner who understands the challenges
Sarah:
Exactly.
David:
That charities face.
Sarah:
They can help you see trends that are happening. Yeah. Anticipate problems that might be coming up, and then make smart decisions that will help you be sustainable over the long term.
David:
Okay. So this all sounds great. But I'm sure some people listening are thinking, well, this is all well and good, but can we actually afford it?
Sarah:
Yeah.
David:
I mean, budgets are tight.
Sarah:
Right.
David:
Every dollar counts.
Sarah:
That's a valid concern for sure, and it's definitely important to weigh the costs and the benefits. But you gotta think about it this way. What's the cost of not having accurate financial information? What if you make a big mistake because you didn't have the right expertise? Oh.
Sarah:
You know, it's not just about the money you pay up front. It's about the risks you avoid and the money you could save in the long run by having a professional on your side.
David:
That's a good point. And and so are there different options out there? Yeah. I mean, are there different pricing models?
Sarah:
Yeah. A lot of these outsourced bookkeeping services have flexible packages
David:
Okay.
Sarah:
That are designed to fit different needs and different budgets.
David:
So it's not a one size fits all kind of thing.
Sarah:
Not at all. You need to do your research, find a provider that's reputable, understands nonprofits
David:
Yeah. Right.
Sarah:
And whose values align with your organization's mission.
David:
And even if a charity decides that outsourcing isn't right for them right now Mhmm. I mean, it's still good to at least understand the benefits and the drawbacks. Right?
Sarah:
Oh, absolutely. The more informed you are about your options, the better decisions you can make for your charity. And whether you choose to outsource or keep things in house, the important thing is to have a system that's accurate efficient Yeah. And that supports your mission.
David:
Okay. So let's do a quick recap of what we've talked about today. Yeah. We talked about how outsourcing can free up a ton of time so you can focus on your mission.
Sarah:
Right.
David:
We talked about how important it is to reduce risk.
Sarah:
Yeah.
David:
Having a professional handle your finances can help you avoid errors and prevent fraud, which protects your reputation and your resources. And we can't forget about the peace of mind that comes with knowing your tax that you're done right and on time.
Sarah:
Yeah. No more stress at tax time.
David:
Exactly. And then finally, we talked about the value of having that expert guidance.
Sarah:
Right.
David:
A good bookkeeper can be a real partner, offering insights and advice to help you make smarter decisions and reach your goals. So it sounds like outsourcing bookkeeping could really change the game for charities. Yeah. Helping them be more efficient, more strategic, and more sustainable.
Sarah:
Definitely. But here's the big question. What could be possible for your charity if you had all that extra time and expert support?
David:
I mean, that's something worth thinking about. Right? What could you do with all that extra time?
Sarah:
Yeah. You
David:
know, maybe you could finally launch that program that you've been dreaming of.
Sarah:
Yeah. Or you could spend more time building relationships with donors.
David:
That's a good one.
Sarah:
Or maybe even invest in staff training. You know, upgrade your technology, expand your outreach.
David:
There's so many possibilities.
Sarah:
Yeah. When you're not bogged down with all the admin work, you can really focus on making a difference.
David:
It's like you said before. Yeah. It's about unlocking your charity's full potential.
Sarah:
Exactly. Too often, we get stuck in the day to day and lose sight of the big picture.
David:
Easy to do.
Sarah:
Outsourcing can help you get back to that vision and create a real lasting impact.
David:
Wow. This has been a really interesting conversation.
Sarah:
Yeah.
David:
I feel like it's really changed the way I think about bookkeeping.
Sarah:
Me too.
David:
It's not just a chore. It's an investment. It is. And it's an investment in your charity's future.
Sarah:
Exactly. And this whole journey isn't just about, you know, checking things off a to do list. Right. It's about finding ways to be more effective. Mhmm.
Sarah:
Embrace new ideas. Yeah. Make smart decisions.
David:
And, ultimately, move your mission forward.
Sarah:
Exactly.
David:
Well said. Well, thanks for joining us on this deep dive, everyone.
Sarah:
Yeah. Thanks for having me.
David:
We hope this has given you some food for thought Mhmm. And helped you navigate the world of charity finances.
Sarah:
Absolutely.
David:
Until next time. Keep diving deep and making a difference. See