Choosing the right CPA firm for your non-profit is more than finding someone to help with bookkeeping. A good firm will be able to offer financial insight and guidance.
Non-profits have unique accounting and reporting requirements. A CPA that specializes in non-profits will be familiar with these challenges.
Reputation
Non-profits have a unique set of reporting and regulatory requirements. Meeting these stipulations can be challenging without the proper expertise, so you should always look for a CPA firm with experience working with non-profits. They will understand the intricacies of your business and be able to provide you with the best possible service.
Many options are available for finding a CPA firm for your non-profit organization. A common way to find non-profit CPA firms is by asking for references from other tax-exempt, charitable non-profit organizations with which the firm has worked. This can be a great way to see how the firm has worked with other non-profits in the past and can give you an idea of what to expect in your case.
Moreover, you can also check out the Non-profit CPAs directory, a compilation of accounting and audit firms with extensive experience working with non-profits. It can help you quickly narrow the options and choose a firm that fits your needs.
Larger outsourcing companies are primarily geared toward businesses but offer services for small and large non-profits, including bookkeeping, financial reporting, and audit assurance. In addition, they also offer a wide variety of additional services, such as a la carte outsourcing solutions, payroll, and even organizational setups.
Experience
Non-profits are vital businesses that provide social services and drive economic development in virtually every sector of society. However, meeting rigorous accounting and reporting stipulations can be burdensome without a professional CPA firm. Whether your non-profit needs an audit, is struggling to keep up with accounting records or requires help filing IRS Form 990, many firms specialize in providing expert financial assistance to non-profit organizations.
When evaluating CPAs and audit firms to work with, consider their experience in the non-profit industry. This will ensure they have the expertise to deliver quality results that meet your organization’s requirements. For example, some CPAs offer different levels of service — preparation, compilation, review, and audit — which differ in the level of assurance that will be provided to users of the financial statements (management & board members).
A firm with deep experience in non-profit accounting can better understand how to set up internal controls for a non-profit business. This helps prevent fraud by ensuring one person does not have full access to all accounts and transactions. Moreover, it can also ensure that someone else correctly approves write-offs or other accounting-related processes.
The best non-profit accounting firms will have years of experience working with different types of non-profits.
Flexibility
Non-profits face unique challenges with their reporting and accounting responsibilities. Meeting these stipulations can be difficult and time-consuming, and they need to find a CPA that understands their industry. CPAs specializing in non-profits can help them get ahead of the game and are often familiar with common concerns and solutions.
To find the right CPA for your organization, it’s important to consider your specific needs. However, a good place to start is by looking at firms that specialize in serving non-profits, as many options are available.
When selecting a CPA firm, look for one that offers flexible engagements and can adapt to your organization’s needs. You can find a firm that will provide auditing and other services on a pro bono basis. Still, it’s important to remember that these professionals are bound by their professional codes of conduct and are not permitted to engage in activities that compromise their independence.
Pricing
Non-profits must comply with many regulations, reporting requirements, and accounting tasks. Keeping up with this can be a challenge for non-profits with limited staff. While hiring a full-time accountant is an option, many organizations must be ready to take this step. For this reason, they turn to CPA firms that specialize in helping non-profits.
A firm specializing in the non-profit sector has extensive experience and is familiar with the unique challenges these organizations face. They are also able to provide insight and guidance on how to manage financial concerns better.
In addition to having a deep understanding of the unique needs of non-profits, a CPA firm specializing in this industry will offer competitive pricing for their services. This is particularly important for non-profits in their early stages and still trying to establish sustainable funding.
The firm can also help with more complex financial issues that may arise, including tax filings, audits, and reviews. In addition, they can assist with more mundane matters, such as maintaining clean and accurate records that are critical to a company’s success.
A firm that offers accounting and bookkeeping services can further reduce the workload for non-profits by allowing them to outsource all their data-related needs. This can help them save time and money in the long run.