Does Your Nonprofit Need to Hire a CPA?
Posted on Wednesday, March 09, 2016
Strong financial leadership is key to the success of any nonprofit organization; however, accounting practices and regulations can be difficult to understand. With the unique characteristics of nonprofit organizations and complex provisions in the Internal Revenue Code relating to nonprofit transactions, a CPA (certified public accountant) can help your organization.
The CPA designation is one of the most widely recognized and highly trusted professional designations in the business world. Stringent qualifications and licensing requirements sets them apart from other business professionals. In order to receive the CPA designation, individuals have to meet rigorous academic, professional and ethical standards. In addition, after they receive the designation, they are required to receive continuing professional education to stay up to date on current standards and requirements.
Many people think of CPAs as number crunchers or tax preparers; however, they are much more than that. CPAs are not only advisors that assist their clients with accounting, financial and tax related matters, but they are also a valuable source of experience and knowledge. More specifically, with nonprofits, CPAs provide resources that regulators and donors rely upon to determine if a nonprofit is spending its funds in a responsible manner. CPAs that specialize in the nonprofit industry understand the unique accounting and reporting requirements of nonprofit organizations that are vital to the nonprofit’s long-term sustainability. In addition, providing reliable financial reporting is critical in maintaining the public’s support of your organization.
Unlike their for-profit counterparts, nonprofits must be transparent in providing both financial and nonfinancial information; therefore, timely and accurate reporting is a must. Utilizing a CPA that specializes in nonprofits can provide your organization the guidance it needs to demonstrate accountability and achieve your mission.
Posted by: Carrie Minnich, CPA
Posted in Mission Minded Nonprofits
Disclaimer: The information contained in Dulin, Ward & DeWald’s blog is provided for general educational purposes only and should not be construed as financial or legal advice on any subject matter. Before taking any action based on this information, we strongly encourage you to consult competent legal, accounting or other professional advice about your specific situation. Questions on blog posts may be submitted to your DWD representative.