Choosing the right CPA for your nonprofit can feel overwhelming.
Maybe you’re looking for a new one after having a bad experience or maybe you’re ready to file your first 990 and don’t know where to start.
Either way, asking the right questions and setting realistic expectations can help you find a trusted partner who understands your organization’s unique needs.
After working at a firm that provided accounting, tax and CFO services I’ve got some inside knowledge to share on how to choose the best firm for your organization.
Below are five must-ask questions to consider when evaluating potential CPA’s for your organization.
1. What Experience Do They Have with Nonprofits Like Yours?
Not all CPAs specialize in nonprofit accounting, and experience matters. Some of the bigger firms have entire teams dedicated to nonprofits. While that’s a win, it’s not always 100% a necessity.
Here are a couple questions to ask:
What experience do you have working with nonprofits of our size and/or mission area?
How familiar are you with restricted vs. unrestricted funds, Form 990s, or grant compliance?
Ask what continuing education their team does to stay up to date on nonprofit accounting changes.
Nonprofit accounting has unique complexities, so ensure the CPA understands the nuances of managing grants, donor reporting, and compliance audits.
2. What Are Their Turnaround Times?
Setting realistic expectations for response and project turnaround times is critical for a smooth relationship.
Asking “What is your typical turnaround time for organizations like ours?” can give you a general idea of how long it might take for the most common requests.
Having worked behind the scenes at a financial services organization I’ve seen how the business works. Many firms operate on tight deadlines especially during tax season or audit periods. They likely have many clients that are sending in requests at a time.
Be prepared to nudge them occasionally for urgent requests. A dirty little secret is most CPA firms will prioritize the clients making the most noise. It’s a fine line between being annoying vs. nudging so give a reasonable amount of time (1-2 business days) to get a response unless it’s absolutely urgent.
3. What Do The Reviews Say?
Google reviews and testimonials can provide valuable insights into a CPA’s competence and client service.Don’t just skim the ratings - read a mix of good and bad reviews.
Look for patterns in the feedback around these three areas:
Response times
Accuracy
Professionalism
If you can search for those terms in the reviews do so. If you see any concerns about accuracy or professionalism consider those yellow flags, but don’t automatically disqualify them.
If everything else checks out with the firm, ask them about it when you get on a sales call with them. Their response will tell you a lot.
Consider asking them what the most common reason for clients leaving their firm is.
These are tough questions, but at the end of the day you need to trust your CPA. It’s a critical role for your organization.
4. Are You Organized?
If you’re unhappy with your current CPA this is a good question to ask yourself first. It might be tough to digest, but I want to be honest with you!
Are you providing all the necessary information upfront?
Are your financial records scattered or well-organized?
CPAs can only work as efficiently as the information you give them. Ensure you’re responding to their requests promptly and maintaining clear documentation to make the process smoother.
If you were in the shoes of the CPA which customer would you prioritize?
If you’ve yet to engage with a CPA ask them up front what you can do to make their life easier. It will help your financial processes be more in line + you’ll get your requests turned around faster!
I’m not saying preferred clients get preferred treatment, but I’m also not saying that 😄
5. What’s Their Communication Style?
Your CPA should be someone you feel comfortable communicating with regularly.
Ask questions like:
Are they available by email, phone, video call? Does that align with your preference?
Do they explain things in plain language, or do they use accounting jargon?
Are they proactive in offering advice, or do they only respond to your direct questions?
A good CPA should feel like a partner who understands your goals and helps you achieve them.
If you have a question about your 990, you want an answer that doesn't require you to have to go Google half of the terms they use.
You also want a CPA who can spot issues that you don't see.
Final Thoughts
Finding the right CPA for your nonprofit isn’t just about credentials. It’s about finding someone who understands your unique challenges, communicates effectively, and provides timely, reliable service.
By asking the right questions and staying organized on your end, you can build a partnership that supports your organization’s financial compliance.
Have you had an amazing CPA experience or a nightmare one? I’d love to hear your story! Email me at stephen@moneypathfpa.com.
Next Steps
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