Growing Your Business

How to Find the Right Accountant for your Nonprofit Organization

by
Mike Kilmer
on
7/24/2016
How to Find the Right Accountant for your Nonprofit Organization

Even though you are not generating taxable income, you still need a savvy financial advisor to help you file your IRS Form 990 and retain your non-profit status. From audits to compliance and planning, the right accountant can help your organization grow and thrive – but finding someone with enthusiasm for your cause, the right mix of skills and the ability to assess your needs can be a challenge.

Start with an RFP

Set up a clear and easy to understand Request for Proposal (RFP) that details all of your needs and objectives. An RFP provides a way to easily assess information and standardizes the way that information is delivered, making it easier to compare the different services you are being offered. Review the offer, language, timeliness and approach of each RFP to make a short list of candidates to speak with.  

Seek out Nonprofit Experience

You have to comply with specific regulations to be considered a tax-exempt charitable organization, so the non-profit accountant  you choose should have a good level of familiarity with compliance and the industry. Choosing someone who already has some non-profit experience eliminates any learning curve and ensures that you do run afoul of any regulations.

An accountant with experience can help you not only with your current concerns, but with future financial planning as well; the more efficiently you run your organization, the more people you’ll be able to serve.

Check for Conflicts of Interest

Does your potential accountant have any connection with your organization, a government agency or your board that could cause an issue for you later? Investigating any potential conflicts of interest ensures that you hire an objective third party and protects your organization’s status. According to the National Council of Non-profits,  the American Institute of CPAs and the government require audits to be conducted by a third party; discovering any conflict of interest early on helps your organization remain in compliance.

Shop Around for Someone with Great Communication Skills

Since you are hiring someone to handle a vital part of your business and you will likely be spending quite a bit of time with them, choose an accountant with quality communication skills. The right person for the job will understand your mission and be sensitive to your needs; they also need to be able to answer your questions and help you make the best financial choices for your organization in the years to come.

The better your chosen accountant is at communicating, the easier the process will be for you both. Search out client reviews and testimonials to give you a clearer picture.

Interview Potential Candidates

The person you choose will have a big impact on your organization going forward, so taking the time to meet with them in person and interview your short list of candidates can help you find the right fit. Some questions to ask include:

  • What non-profits do you work with?
  • What do you think is the biggest challenge faced by a non-profit today?
  • Will you be the actual person working on my account or with my organizations?
  • Who do I call if I have a question or concern?
  • Do you handle non-profit payroll?
  • What costs do you anticipate and what do you charge?
  • How do you feel about our mission?

The answers you receive should help you zero in on the right accountant.

It may take some extra research and work, but a professional with non-profit experience and a heart for your mission can help you continue to thrive and succeed and play a key role in your ability to serve going forward.

share this post
Search for matches...
Mike Kilmer

Mike Kilmer

R. Michael Kilmer, CPA, CVA is a CPA based in Winchester, VA. Mike started Kilmer & Associates, CPA, P.C. in 1998 and understands the challenges of operating a business. He uses this real-life experience to assist clients with the opportunities and challenges that they face. In addition to possessing the expertise and technical skills required by the profession, he takes time to listen to clients concerns and communicates with straight talk in an understandable way. By combining technical expertise and real-life experiences, Mike is able to assist clients with solving their problems and complying with regulatory requirements.

KILMER & ASSOCIATES, CPA, P.C.
27 reviews

Virginia

Recommended Professionals

In the face of economic uncertainty, TaxBuzz is the industry's most up-to-date tax information.

Join 60,000 who get our weekly newsletter. No spam.

We know tax and accounting issues are complicated.

Do you have additional questions on this topic for this author?

Related Posts

Latest Posts