What to Look for in a Nonprofit Accounting Professional

Congratulations, you have decided your time is valuable and you need an accounting team to scale your organization’s growth and increase compliance to maximize mission impact. Hiring a bookkeeper, an outsourced CFO, or other accounting professional for your nonprofit organization is a major milestone. After all, the accounting partner you choose will be responsible for managing and advising on the core foundation and accounting infrastructure of your organization.

On top of the basic qualifications you need to look for in any accounting professional, there are several unique qualities you’ll want to consider to make the relationship between your nonprofit and your chosen accounting professional a success.

At Goshen Accounting Services, we find prospects and clients come to us because they are not satisfied with the level and type of service they have received from an accounting professional in the past. Or, they are dealing with communication, compliance, and rapid growth issues that are beyond what their internal staff can handle.

Therefore, we are sharing the top six qualities you should consider when looking to hire an accounting professional for your nonprofit.

1. Find an accounting partner with nonprofit experience

First, it might sound obvious, but extensive prior experience in nonprofit accounting services is a must-have. To an outsider, it might seem like accounting for nonprofit organizations is similar to that of a for-profit business. But the truth is, there are many nuances when it comes to managing the finances of a nonprofit organization that is only learned through experience and understanding tax regulations.

Criteria to look for and ask about:

• Does the accounting professional know how to use your accounting system inside and out?

• Does the accounting professional understand donor management best practices?

• Does the accounting professional keep up with continuing education to stay on top of ever-changing regulations that impact nonprofits specifically?

• Can the accounting professional demonstrate a history of success, not only with nonprofits in general, but also with organizations that share your organization’s mission and values?

If you can honestly answer each of these questions with “yes,” then you’re well on your way to selecting the right nonprofit accounting professional for your organization. But that’s not the entire picture.

2. Look for synergy between your organization and the accounting professional

Next, find someone who is compatible with your organization on a few specific levels. Synergy with your mission and values are the foundation of that compatibility, but definitely not the entire story.

• Does the accounting professional understand the relationship aspect of how your organization serves the community?

• Will the accounting professional be able to work closely with the board of directors, management, and your staff as a trusted partner and advisor, with clear, two-way communication and transparency?

• Does the accounting professional you’re considering understand modern technology and bring solutions to the table that will help your organization stay in compliance, diversify revenue streams, and reduce expenses?

All of these considerations should help you further determine whether the accounting professional you’re speaking with is one you can trust long-term.

3. Resist the urge to make weird assumptions and stereotypes

When you are interviewing multiple accounting professionals, leave your stereotypes and weird assumptions that bookkeepers and accountants are not valuable as doctors or attorneys at the door. The accounting profession is in the business of helping your organization thrive with fewer tax nightmares, more peace of mind, and keeping your stakeholders happy.

Be prepared to be vulnerable in answering questions about the behaviors that lead to the financial situation your organization is in currently and the plans you have to get out of the chaos. The interview phase is like dating to determine if your organization and the accounting professional want to be married to each other for the next 3-5 years.

Your accounting professional should give you the comfortable space you desire to freely share what’s keeping you and your team up at night. The goal is to be your authentic self and truly allow your accounting professional to help you break through the roadblocks hindering your organization.

4. Focus on quality and value instead of the cheapest service

In our experience working with various nonprofit organizations and conducting discovery sessions, we have found going the cheap route or continuing to use volunteers for highly skilled positions doesn’t translate to high quality and value for nonprofit organizations.

Just because your organization is a nonprofit doesn’t mean everything you receive should be free or discounted. It takes an investment of money, time, and resources to help any business thrive successfully. And, looking at accounting as an afterthought or not wanting to invest now when you are running a nonprofit that generates gross revenue of $100K or more creates future chaos and increases the hefty cleanup fee.

Have a realistic budget in mind when talking with a potential accounting partner that includes how much it will take to streamline your organization and get your books in great shape. Don’t be surprised if you receive a premium quote from a nonprofit accounting expert that is more than your budget.

The best nonprofit accounting professionals are often not the cheapest and are experts with years of continuing education and training, have trained back-office support teams, and bring a diverse wealth of experience to change the trajectory of your organization’s financial infrastructure and operations. The last thing you want to do is reinvent the wheel, so take the time to choose the best accounting partner.

5. Add your accounting partner to your core executive team

There are the less tangible elements of finding the right professional relationship. We believe an accounting professional is more than just someone who “does your books,” or “files your taxes” or a vendor.

To achieve the highest level of success, you have to work with an accounting partner and advisor who is good at more than numbers. The ideal nonprofit accounting partner is someone who can do most (if not all) of the following:

• Become a core part of your team and have a voice at the board and management level of your organization;

• See the big picture in your organization and help you tell your mission and program success stories with accurate finances;

• Serve as the right-hand support you communicate with for every milestone decision (big and small) your organization undertakes;

• Translate information in a language that speaks to the human element of your operations without the accounting jargon;

• Provide accountability for your organization through honest dialogue without sugarcoating the difficult parts;

• Advocate for your organization to secure more funding with funders;

• And, be your “calm during the storm,” and have the ability to absorb some of your pain so you can focus on serving the greater community knowing your finances are well taken care of.

You should be able to laugh, vent, and celebrate the wins of running your organization with your accounting partner.

6. Trust the process and be patient with your accounting partner

When considering all of these factors, and evaluating your potential accounting partner for a fit, we can’t leave out one important piece of the puzzle: You! Remember, as good as your bookkeeper or accountant is, they will need time to understand the complexities of your organization and help you get out of any messes you may have gotten into.

If your nonprofit’s books have been messy for years, don’t expect an instant fix – even if you find someone who fits the bill in all categories. It may seem like a lot is happening and being demanded from your organization within the first 6 months, but when you trust the process and work as a team to achieve goals, it reduces accounting friction and generates long-term results.

All of the above are just a few of the traits that should play in your decision-making when it comes to finding and vetting accounting professionals for your nonprofit.

Goshen Accounting Services is here to support and help your nonprofit organization thrive. If you think we might be a good fit for your nonprofit, review our services and book a discovery session now to get started.

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