Non Profit Accounting Firms: Making the Right Choice

Running a nonprofit organization (NPO) has its fair share of responsibilities. From overseeing operations and managing budgets to ensuring financial compliance, one key to navigating these challenges is partnering with the right nonprofit audit partner. How do you know if you’re getting the best level of service during your nonprofit annual audit? Let’s highlight the vital traits to consider when reviewing non profit accounting firms, so you choose the right audit team.

Nonprofit Expertise

The best nonprofit accounting firms have extensive nonprofit experience and expertise. Because nonprofit audits can be complex due to the red tape surrounding federal funding, or complexities with restricted contributions, pledges, and private funders contributions, you want to work with non-profit auditors with the expertise to perform your audit with care and accuracy.

Seek out non profit accounting firms with a strong track record of working with organizations similar in size and scope.

Relevant Professional Certifications

Ensure that nonprofit accounting firms you’re considering have accounting professionals with relevant qualifications and certifications. These qualifications include being a Certified Public Accountant (CPA), Chartered Accountant (CA), or having an AICPA membership. These relevant certifications show that the firm’s staff has undergone the required training and has met professional standards.

Knowledge of Nonprofit Accounting Principles

The nonprofit industry stands distinct, catering to donors and governed by its own set of regulations—and while it may resemble for-profit businesses in many ways, nonprofit audits demand specialized industry expertise to be executed effectively. Top-tier nonprofit accounting firms must have a deep understanding of industry-specific accounting principles, Uniform Guidance single audit requirements, tax regulations, and reporting requirements while staying current on any regulation changes.

Client References and Independence

If you’re unsure of what makes one audit firm stand out from the others, get references from other nonprofit organizations. Discover which nonprofit accounting firms have the best reputation for reliability.

Are you concerned about auditor independence? Look for potential conflicts of interest between the NPO and the firm. Investigate if there are any potential ties to management, the board of Directors, vendors, or competitors. You want to select an audit firm that can provide an unbiased opinion and an independent audit.

Technology and Tools

Innovative technology makes performing audits even more accessible if a firm has the right tools. Accounting firms that leverage advanced tools, like remote audits and secure cloud-based software, can streamline the process, improve accuracy, and provide valuable financial insights.

Communication and Responsiveness

When selecting a CPA firm, it’s crucial that NPOs assess the communication and responsiveness of the firm. Find answers to questions like:

Does the firm communicate clearly?
Do the audit teams demonstrate expertise in the field?
Do the auditors respond to inquiries and address concerns in a timely manner?

The best accounting firms will have streamlined communications that never leave you wondering if they received your documents or if your audit process will meet the required deadlines.

Choosing the Best of Non Profit Accounting Firms

Whether it’s your first audit or your twentieth, you want a CPA firm that can meet reporting deadlines and provide quality services.

Assurance Dimensions dedicates time to understanding your organization, financial resources, and risk environment to offer tailored solutions. We have a proven track record and expertise in nonprofit and single audits, so we know how to help your organization confidently navigate regulatory compliance and showcase measurable value to your donors, members, and communities.