There are a reported 257,000 Not-For-Profit Organisations (NFPs) operating in Australia, 55,000 of which are registered charities, with the sector growing annually by 2%*. With a primary focus on serving their missions, causes and charities, it’s essential for these organisations to have transparent financial and business management, even more so than other commercial enterprises. Additionally, they are required to provide an annual audit, by professional auditors, and comply with regulations issued by the Australian Charities and Not for Profits Commission (ACNC).
There are a reported 257,000 Not-For-Profit Organisations (NFPs) operating in Australia, 55,000 of which are registered charities, with the sector growing annually by 2%*. With a primary focus on serving their missions, causes and charities, it’s essential for these organisations to have transparent financial and business management, even more so than other commercial enterprises. Additionally, they are required to provide an annual audit,
While your most significant role as an NFP is addressing various social, environmental and community issues,all NFP stakeholders must be aware of the high-level of reporting, compliance and annual auditing required.
One of the most critical aspects for NFPs is financial transparency. Donors, supporters and stakeholders want to know their contributions are being used effectively and efficiently. Additionally, many NFPs rely on grants to fund their activities. Managing these grants can be a complex process that requires meticulous record-keeping and reporting.
This is where a qualified bookkeeper becomes indispensable … but not just any bookkeeper - a bookkeeper who understands the stringent reporting requirements and a professional who regularly works with NFPs. WestBAS Bookkeeping and Accounts Services have established themselves as the ‘go to’ bookkeeper for NFPs in Perth looking to ensure their compliance and strong credibility as a service provider.
Here are five reasons why a professional bookkeeper, like WestBAS, is essential for NFPs, particularly when they are looking to grow their business and expand their reach in supporting the community:
1. Timely Preparation of Financial Reports
It’s imperative that NFP financial reporting follows stringent guidelines regulated by the ACNC and provides a clear and transparent picture of your organisation’s financial health. Regular reports provided to board meetings need to be up to date and provided on time to ensure compliance, often with a quick turnaround. Choosing a professional bookkeeper ensures your reports are comprehensive and accurate, and at WestBAS, we guarantee we’ll meet your deadlines.
2. Cashflow and Budget Management
Effective budgeting and financial planning are essential for your NFP to support your clients and achieve your goals. Like all commercial businesses, cashflow can be a big issue. And for NFPs, this issue is heightened by the sporadic nature of the NFP environment. Funding of NFPs often comes from grants and/or donors and despite stringent budgeting, income is never guaranteed. With a professional bookkeeper you can be sure that any issues with cashflow or the budget are picked up quickly and dealt with efficiently.
At WestBAS, we thoroughly track income and expenses, analyse financial data, and provide insights that enable informed decision-making. We can also help create and maintain a budget that aligns with the organisation's objectives.
3. Grant Management
Grants can be the life blood of many NFPs. Grants help the organisation to achieve their goals in supporting the community, however, grants don’t come easy and require full transparency.
When applying for grants, it’s imperative your organisation’s accounts are fully up to date and comprehensive. Grant providers usually require acquittal statements to ensure the funds have been used for the sole purpose of the grant. A qualified bookkeeper will track grant funds and ensure they are used in compliance with the grant agreement, providing the necessary documentation and reports. This ensures and enhances your NFP’s reputation and responsibility for grant management.
4. Cost Saving and Expert Knowledge
A professional bookkeeper can identify areas where reduced costs can be realised and resources can be used more efficiently. This can make a huge difference to the services provided and the extra people your NFP can support. There are extensive ways that costs can be saved and at WestBAS we analyse your accounts thoroughly for the best possible use of funds.
We are also aware of all the additional benefits that apply to NFP employees. NFPs can offer generous benefits to employees that may not be available in the private sector. This includes salary packaging and flexible hours that can help with the smooth running of the organisation, as well as use funds more efficiently. This information is invaluable for NFPs who want to maximise the impact of their work.
5. Collaboration With External Agencies
With all the compliance, reporting and grant management required for NFPs, it helps to have a professional on board who understands exactly what is required by these external agencies. A professional bookkeeper who regularly collaborates with annual auditors, grant providers and the ACNC can be an invaluable asset for your organisation. With extensive experience with NFPs, WestBAS has a wealth of knowledge and connections within the NFP industry sector.
In an industry where every dollar matters, and financial management is paramount, choosing a professional bookkeeper who thoroughly understands the world of NFPs in Australia could be the strategic partner that ensures your organisation’s success.
Call Susan at WestBAS for a friendly chat to answer all your questions about professional NFP bookkeeping, and you may discover that outsourcing your bookkeeping requirements is far more cost-effective and efficient than you ever imagined.
They can ensure you maintain financial integrity, continue to build trust with stakeholders, and support you to achieve your organisation’s purpose.