Nonprofit organizations, as we discussed last week, need guidance when it comes to the financial aspect of the organization. Dedicated to running the programs and providing the support their communities need, nonprofits often lack the time and attention to successfully manage their finances. With the help of a trusted financial advisor or CPA, nonprofit organizations can gain a better grasp of their finances and ensure that they are adhering to all of their financial obligations in terms of grants and federal requirements.
As you begin your search for the perfect CPA for your nonprofit organization, keep the following tips in mind. While the search for the right CPA is not an easy process, the time and dedication you commit to finding the right person to handle your organization’s finances will pay off in the long-run.
How do I even begin finding a CPA for my nonprofit organization?
- Inform your staff members and volunteers of your need for a CPA, and ask them if they have any referrals.
- Mention your search for a CPA in your regular newsletter.
- Call your state’s CPA society for referrals.
- Search through your member or donor list for active CPAs. Give them a call and see if they are interested in helping your organization.
- Ask surrounding nonprofits for their CPA’s contact information.
- Join an online professional networking site. Once you’ve joined some groups, go online and post your need. You never know who may be willing to help!
Building a quality relationship with your nonprofit CPA is essential. Remember that a quality CPA will benefit your organization more than it costs. If your current CPA is costly your organization more time and money, you should looking elsewhere for your organization’s accounting services. Once you’ve found the right CPA for your nonprofit organization, make sure you discuss the estimation of fees and desired tasks in length. You don’t want to be surprised later on down the road with any unexpected costs.
It’s important that you feel comfortable enough with your CPA to ask any questions you may have about their experience, responsibilities, knowledge, etc. After all, he or she will be your trusted business advisor from now on, so don’t leave any questions unasked! Keep the following questions in mind as you begin talking to your chosen CPA about their involvement with your nonprofit organization:
- How many nonprofit organizations does he or she currently work with? Does your CPA work with organizations of a similar size?
- What is his or her area of specialty? Some CPAs only conduct audits while others specialize in preparing the IRS Form 990. Make sure you’ve chosen a CPA that matches your organization’s needs.
- Ask who you will be working with. Larger CPA firms generally have several people handling their accounts, and the original person you interviewed with may not be the person working on your account. Find out who you will be working with so you know who to go to with any questions or concerns.
- Ask your CPA to explain the financial reporting requirements specific to your nonprofit organization. This is really a test to see if the CPA you’ve chosen knows the guidelines. Do you understand his or her explanation, or are you lost in the professional jargon? Getting on the same page is crucial to the success of your CPA-nonprofit relationship.
- Find out if they charge by the hour or by the project.
After your first audit, your CPA will be able to tell you a lot more about your organization. They can compare your nonprofit to other nonprofits they work with and give your organization suggestions for improvement. Remember that your relationship with your CPA is an on-going relationship that will benefit your organization for the long-haul. Make sure you choose your CPA wisely!
Should your nonprofit organization hire a CPA? Discover why you should make the decision to move your financial management to a nonprofit CPA here.