- June 7, 2017
- Posted by: Rivero, Gordimer & Company
- Category: Business Advice
Every great not-for-profit organization starts with a passion for making a difference, but when it comes to long-term success, passion alone won’t get you very far.
Diversified management and solid financial leadership are keys in determining how fast and sustainable your organization’s growth will be. However, with the complexities of the not-for-profit tax brackets and other fiscal responsibilities, it can be difficult to find the right person to put in charge of your accounting.
While there are many different certified public accountants (CPAs) that specialize in not-for-profit businesses, it’s important to select the firm that represents your mission and honors your vision. Hiring an accountant is forging a partnership of trust, communication, and goal setting so that your passion can be put to good use, for many years into the future.
If you are ready to take your not-for-profit to the next level, it’s time to bring a qualified CPA firm on board, and stop having your volunteers or board members handle the critical task of managing the organization’s finances. An outside, independent accounting firm can offer many wonderful benefits for your business, including, but not limited to, the following:
1. They lend credibility
Since not-for-profit organizations rely on donors and investors to pay the bills and expand their programs, public perception plays an important role. Taking the initiative to hire an experienced not-for-profit CPA firm shows prudence.
This step can help boost your credibility with potential donors, volunteers, and charity registration bodies. People will inherently feel more comfortable supporting an organization that they know takes precaution with their money and resources. Having a professional CPA firm that has a proven track record in the not-for-profit space will boost your organization’s reputation.
2. They know the industry
Every industry is different, especially not-for-profits. Bookkeeping for a not-for-profit isn’t the same as a for-profit organization; tax classifications and deductions aren’t like other industries. The accounting intricacies of the not-for-profit industry should only be navigated by a CPA with experience.
Finding a CPA Firm, like Rivero, Gordimer & Company, that has CPAs with years of not-for-profit experience can help you rest assured, knowing they understand the ins and outs of the industry and can keep your operations within legal requirements.
Additionally, the more experience your CPA Firm has in the not-for-profit space, the more likely they can provide you with strategic advantages that can help you grow your organization, find optimal tax deductions, increase donations, and improve the financial stability of your not-for-profit.
3. They can handle audits and reports
One of the particular skills that not-for-profit CPAs possess is the ability to prepare for, and handle things like, yearly fiscal reports and IRS audits. Many nonprofit organizations, especially new ones or ones that experience rapid growth, are at higher risk for audits and potential penalties.
Expert CPAs will have the knowledge and organizational capabilities to prepare forms, submit documents, and act as a liaison with the governmental agencies, so you can stay focused on growing your not-for-profit.
If you want to set yourself up for sustainable success in the not-for-profit arena, it’s important to hire a professional CPA firm to handle your accounting and finances. Charities that outsource their accounting tend to outperform those that attempt to manage their own finances. They are also less likely to fall victim to fraud and poor brand reputation.
Featured image via Flickr