Bookkeeping for Nonprofits: Finding the Right Fit with Mid-level & Full-Service Options

Choosing the right bookkeeping support for your nonprofit is a significant decision that impacts your financial health and ability to focus on your mission. As you evaluate your options, you'll likely encounter terms like "Mid-level" and "Full-service" bookkeeping. Understanding what these mean in the context of a nonprofit can help you find the best fit.

The primary distinction often lies in who handles the day-to-day transaction processing. With Mid-level bookkeeping, your dedicated in-house team typically manages tasks such as processing donations, handling accounts payable, and cutting checks for programs. You then provide this information to your external bookkeeping partner for accurate entry into your financial system, like QuickBooks Online. This can be a suitable option if your team has some capacity and expertise for these tasks.

Alternatively, Full-service bookkeeping means your external partner (hi, have we met?!) 😄 takes on the bulk of transaction processing. This often involves utilizing electronic payment systems for enhanced transparency and robust cloud-based record-keeping – a system frequently favored by auditors, especially for nonprofits. In a full-service model, your in-house point of contact can often focus on essential administrative support, such as providing necessary documentation and coding, without needing extensive accounting expertise.

Evaluating your nonprofit's specific needs, the capacity of your current team, and your budget will help you determine whether a Mid-level or Full-service approach is the right fit. The goal is to establish a bookkeeping system that provides clarity, efficiency, and the accurate financial reporting necessary to support your important work.

When you’re ready to consider options beyond an hourly bookkeeper that is, for example, reconciling the books, but not providing the insightful information you’d prefer from an accounting advisor, we’d love to connect with you and share some customized options to consider.