Insightful financial leadership is critical to the success of any non-profit organization. When facing challenges or approaching new opportunities, outsourced CFO and controller services from PBMares can provide guidance to help your organization achieve its financial goals. 

Our seasoned professionals provide expert support and insights when and where you need it most.

Issue

A non-profit foundation was having difficulty finding a CPA with knowledge of Uniform Guidance who would provide internal accounting services at a price point they could afford. So they bought a fractional service from PBMares. 

Solution

The foundation hired Pathway, the PBMares Finance and Accounting Outsourcing Team, to begin providing outsourced fractional accounting services. 

Solutions include:

  • Timely and accurate monthly financial statements. The client feels confident that we understand the organization and its goals. Executive directors at two other clients with similar engagements are also quite happy with our services and continue to outsource from us. 

By handing over preparation of their financial statements, the client is finding peace of mind about critical tracking activities, including restrictions and programs. The client enjoys having confidence that key figures are accurate (e.g., net assets without donor restrictions, expenses by function as either program, management and general, or fundraising per generally accepted accounting principles).

  • Insightful financial analysis. The team produces reliable and accurate financials that reflect current actual figures vs budget; and current actual figures vs.prior year actual figures. Upon receiving our analysis of revenue and expense variances, one executive director let us know he felt confident that the books are now receiving the appropriate level of review. The foundation realized many other benefits from these analyses, including:
  • Retaining their best employees. Using the analysis to track actual vs budget revenue and expense to ensure that they have sufficient resources for future spending including employee salaries. Our service also enables management to identify how much in additional grant funding they will need to cover salaries.
  • Optimizing how grants and other contributions are utilized. By accurately tracking their spending against grants and other contributions with conditions and restrictions, the foundation was able to ensure they fully utilized the funding before it was set to expire.
  • Identifying which locations are profitable. Accurate financial analysis enables management to make informed decisions about shutting down certain unprofitable locations. 
  • Favorable audit outcomes. Clients who have been audited have received unmodified audit opinions and no significant deficiencies or material weaknesses were found.

Once the initial project was underway, the foundation decided to keep our fractional accounting team in place rather than continue the search for a new in-house accountant.

Value Outside the Scope of the Project

Actionable tax insights re: bonus compensation

One executive director asked our team for guidance when considering taxation related to bonuses. The team provided insights about timing differences (e.g., issuing bonuses separate from normal payroll vs. at the same time as normal payroll).

Knowing that the employees participate in a retirement plan, our team also advised the director to check the plan document to see whether employees can contribute to retirement from their bonuses. The director appreciated this actionable advice and reviewed the plan document with his third party administrator to ensure that contributions were in compliance.

ROI for the Client

By using our outsourced controller services, the foundation recognized several benefits, including:

  • No need to hire a full time in-house team of accountants
  • Efficiency and new insights from optimized accounting systems
  • Elevated confidence in financial statements for the foundation’s executive director
  • Access to our information systems (bill.com, Sage Intacct, Tallie, and Expensify)

Learn More

Learn more about outsourcing all or part of your accounting or finance function. Contact us today.