What is outsourced accounting and is it right for your ministry?

Outsourced accounting is when a business hires a third party to complete the accounting function and finance function of the organisation. Outsourced qualified accountants handle all the finance functions of the business including: bookkeeping, payroll, financial reports, management accounting, tax, accounts payable, accounts receivable, following up debtors, and other accounts-related services.

Why outsource your ministry’s accounting?

By outsourcing your accounting, you can save money and improve results at the same time. If you run a company that isn’t an accounting firm, you likely aren’t a master accountant. By teaming up with a CPA firm you get access to a team of people with a wide range of expertise. This makes sure your accounts are always accurate, payroll is compliant and completed on time, and you’re not at risk of penalties or regulation mistakes. A good firm will get it done right and do it cost-effectively.

In defining outsourced accounting, we are intentional in referring to “qualified accountants”. The reason for this is that accountants that are accredited with CA or CPA are required to undertake continuing professional development hours each year, ensuring they remain up to date with changes to accounting standards, legislation, and best practice.

Is your ministry ready?

In assessing if your Church or Ministry is ready to engage an outsourced provider, we recommend assessing your strategic or legacy plan, as a key indicator is a growth-mindset or calling. In addition, where the accounts function is volunteer-managed, we recommend assessing an outsourced provider when you commence employing staff.

The benefits at a glance

Benefits of outsourcing include:

• Cost savings: reducing overall costs by not carrying a complete in-house finance team.

• Expertise on demand: access to a team with a wide range of accounting expertise.

• Reduced compliance risk: payroll stays compliant and on time, lowering the risk of penalties or regulatory mistakes.

• Scalability: support that can grow with your ministry as staffing and activity expand.

Choosing the right Outsourced Accountants

In selecting an outsourced provider, we recommend finding an organisation who is mission-aligned, and understands the important interrelation of faith and finances. Stewarding finances well involves an awareness of how God has called us to live out his mission, and should be understood by every layer of your outsourced provider.

Talk to a team that understands ministry

Deciding whether to outsource your accounting is a stewardship decision, not just an operational one. At For Kingdom Breakthrough, we help churches and ministries work out what they actually need, whether that is full finance support or simply a hand with the parts that have outgrown a volunteer team. 

If you are weighing up the move, or you just want a clearer picture of where your finances sit, we would love to talk it through with you. There is no pressure and no jargon, just qualified accountants who understand both the numbers and the calling behind them. 

Reach out for a conversation about what outsourced accounting could look like for your ministry.