Evaluating Nonprofit Accounting Services

nonprofit accounting nonprofits Mar 01, 2023
Nonprofit Accounting Services

Navigating nonprofit accounting services to find the firm that best suits your nonprofit’s needs can be a difficult undertaking. 

However, ample research at the beginning of this process can save your organization from having larger financial issues or struggles in the future. In this article, we will be taking a look at some of the steps you can take and questions you can ask in order to streamline the selection process as you sort through the multitude of accounting firms to make a choice that best suits your needs.

However, once you have selected an accounting firm to partner with, your work is still not done. 

It is important to evaluate the services being provided to you frequently to ensure that you are:

  • Getting the most value from your accounting firm
  • Receiving everything you were promised

We will also be taking a deeper look at the reasons why you should evaluate your nonprofit accounting firm and how you can evaluate them.

Reasons to Evaluate Your Nonprofit Accounting Services

When searching for an accounting firm, it is important to look at several options before making a final decision. 

So, what reasons do you have for taking the time to evaluate your options? 

Well, for starters, you will want an accounting firm that has the experience necessary to meet your needs. Oftentimes, this will be an accounting firm that works closely or specifically with nonprofit organizations already. 

You also want to take the time to evaluate pricing differences between firms. 

In addition to this, you will want to gauge what services are offered to you and determine which accounting firm will be giving you the best value for the services provided. 

All of this work, in the beginning, will help you make an informed decision that can significantly impact your organization down the road.

Evaluating Nonprofit Accounting Services: The Basics

When evaluating a nonprofit accounting firm to determine if they are a good fit for your organization and its needs, there are several areas to investigate before making your final choice. 

As stated previously, you should strongly consider looking for an accounting firm that specializes in nonprofits. This is a great indicator that the firm will offer services that you will need, as well as having a deep understanding of how nonprofits function already. 

Next, take the time to identify all services the firm offers, even if the firm specializes in nonprofits. It is a good idea to have a list in mind of services you are looking for going into this process, as it will make the decision-making and research much easier. 

Another thing to keep in mind is your budget. Take time to look at all fees for the provided services and decide if they fall within your budget or if you may need to keep searching for a better deal. Compare the information you find for each accounting firm to help you decide which one provides the best services for the fairest budget.

Questions to Ask

When interviewing nonprofit accounting firms, there are several questions that you can ask to help you with your search.

  1. What experience do you have working with nonprofits?
  2. Do you have any references from past clients?
  3. What accounting services do you offer?
  4. What are the fees for your services?
  5. How will you handle my organization’s financial reporting requirements?
  6. How often will you provide us with financial statements?
  7. How will you help us stay up-to-date with tax regulations and filing requirements?
  8. How will you help us develop and implement an organizational budget?
  9. Will you help us evaluate our current accounting processes and suggest improvements?
  10. What sort of internal controls do you recommend for our organization?
  11.  What kind of technology do you use?

Although this is not an all-inclusive list of questions, these will get you on the right track.

 Be sure to consider other questions that pertain directly to your nonprofit and what your needs are. A good accounting firm will be happy to answer any and all questions you have.

Searching for an Experienced Nonprofit Accountant?

As we have discussed, there are many factors to consider when looking for an experienced nonprofit accounting firm. 

It is crucial that you do your due diligence in the beginning stages in order to save yourself time and money for your nonprofit in the future. 

Take this initial opportunity to evaluate multiple nonprofit accounting firms and compare the benefits that each one can offer you for the most competitive price. 

If you are having difficulties finding a nonprofit accounting firm that fits your needs, or are just starting your search, consider working with us, Morris Verdonk Accounting

With over twenty years of experience working closely with nonprofits, we feel that we are well-suited to tackle any financial questions or concerns you may have. 

Contact us today to schedule a personal consultation; we would love to find out more about your organization and what we can do to help you. We look forward to hearing from you!

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