Running a non-profit organization (NPO) is a lot of work. On top of day-to-day operations, member needs, and tight budgets tied to specific funding agreements, there is bookkeeping and accounting. That may not be your favourite part of the job.
The size and complexity of your NPO will shape what you need. For many organizations, working with a CPA firm is a practical way to stay compliant without hiring a full in-house finance team.
Here are three reasons a CPA firm could be a good fit for your NPO’s accounting needs.
1) You want supplementary support on an as-needed basis
Many NPOs do not have the budget to outsource everything to a CPA firm. Most often, we work with nonprofit clients who have an internal bookkeeper for day-to-day transactions. They come to us for specific questions or problems they cannot solve on their own.
That is the advantage of working with a firm. You do not have to hand off every task, but you have reliable access to advice when you need it. That might mean a T1044 question, a grant reporting issue, or a review before year-end.
2) You want to set your organization up for success
If your organization is just starting out, or you are going through growth or a leadership transition, a CPA firm can help you build habits that last.
For example, we provide education to nonprofit leadership and boards on CRA requirements, funding agreements, and bookkeeping processes. When the budget is tight, ask whether the firm offers one-time consultations or workshops.
Consulting with experts early can save time and money later. It also helps ensure your paperwork is in order if the CRA reviews your filings or a funder asks for audited or reviewed statements. See When to File a T1044 (NPO Information Return) for one common compliance trigger boards overlook.
3) You find the ins and outs of your accounting needs confusing
Nonprofit accounting can get complicated quickly.
Your obligations depend on what type of NPO you run, the value of your assets, where funding comes from, and whether you need reviewed or audited financial statements under a grant, statute, or by-law.
Without an accounting background, sorting through those details takes time. Every hour spent self-learning nonprofit rules is an hour not spent on programs and members.
Working with a firm gives you an expert set of eyes on your books so things are done correctly the first time.
Need nonprofit accounting support?
If working with a CPA firm sounds like a good fit, we would like to hear from you.
RHN is a full-service firm with dedicated not-for-profit experience. Whether you need support alongside internal bookkeeping, advice on best practices, or help with a specific question, we are happy to help.
Contact us for more information.
This post has been prepared for general information purposes. It is not advice. The information presented may not fit your unique situation. Please consult one of our trusted business advisors at RHN CPA for further clarification and interpretation of your circumstances.
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