As it turns out, nonprofit accounting can be a real challenge.
And a real pain, especially if you’re not sure what to look for in your bookkeeping.
And since most nonprofits have to rely on various means of charitable donations from others, it can get even more complicated to track and manage your finances. While some may have access to a knowledgeable accountant that gives them free advice (which sounds amazing,) not everyone has this kind of resource. And if your organization needs support, you should consider working with nonprofit accounting firms.
A nonprofit accounting firm has the experience and know-how to manage a nonprofit's taxes, bookkeeping and general finances. Since this type of accounting differs from for-profit businesses, some firms aren't cut out for nonprofit accounting work. But how do you find the right nonprofit accounting firm for your organization? And what should you look for?
Don’t fret - we’ve got you covered. Here at Beyond Accounting Tax, we know what nonprofit organizations should look for in an accounting firm.
Accurate and continual data entry
Any accounting firm worth its salt should be able to provide ongoing data entry for your records. The last thing you want is an accountant who keeps falling behind on their bookkeeping and has to input tons of data to get caught up on your records. Look for a nonprofit accounting firm that offers ongoing data entry, so you always have updated records.
Offers payroll and invoicing services
A nonprofit is only as good as its volunteers and employees. So you want to make sure you can pay your team for their hard work and keep track of invoices throughout the year. A nonprofit accounting firm that provides payroll and invoicing options is worth its weight in gold.
Experience in donation management
Nonprofits need donations to stay afloat; whether it’s an act of service or a monetary gift, they allow nonprofits to stay alive and even thrive. It’s essential to have a donation management plan in place so you can track and record all of your incoming donations. A good nonprofit accounting firm will have experience managing donations and can give you examples of their previous work to show their skill level in this area.
Even if money is tight, you need to pay an accounting firm for its services. However, if they are not upfront with you about their costs, proceed with caution. While most accounting firms won’t display their service rates right off the bat, they will often disclose these to you in your initial meeting. Transparency and communication are key, especially when it comes to accounting.
While finding the right nonprofit accounting firm for your organization may seem like a challenge, don't give up hope. There are plenty of firms out there who want to help nonprofits reach their goals, and they strive to develop a positive relationship with their clients. Beyond Accounting Tax is one of those firms, and we work hard to ensure our clients have as much support as they need.
We offer nonprofit bookkeeping and accounting as well as financial advice and even virtual CFO options. If you’re curious to learn more about our services, contact us today! We can’t wait to work with you.