Overall unemployment levels are historically low at 3 – 4% which is approaching full employment. Robert Half reports that unemployment for accounts is actually below 2%. As a result, hiring qualified talent is becoming more difficult if not impossible to achieve. Nonprofits make double the number of errors compared to for profit businesses due to the complexity and under investing in the nonprofit accounting function. Most nonprofits use accounting software that is not designed for nonprofit accounting. This might be the perfect time to explore outsourcing a portion of the accounting depending on what types of activities you need internal staff to perform.
In the nonprofit community, outsourcing typically means long-term delegation of key operation to outside experts. The accompanying expectation is improvement of the quality, strengthening effectiveness, and lowering or controlling costs.
A key difference in the nonprofit sector is not only controlling costs, but becoming a more effective organization.
Outsourcing accounting provides nonprofit organizations with a team of experts who have multiple client experiences which benefits its clients and the nonprofit organization’s it serves. FTM has a team of nonprofit accounting experts to assist your organization with its accounting and finance function including hiring and training your internal staff.
You should look for the following in any accountant candidate that you are considering hiring for your Nonprofit:
- Your accountant should be able to keep your finances organized and under control.
- Your accountant should be able to enter your income, expenses, assets, and liabilities into accounting software.
- Your accountant should understand the IRS requirements and generally accepted accounting practices to insure financial reports are properly prepared and accurate.
- Your accountant will make sure any employer taxes and tax filings are completed timely.
- Your accountant should be familiar with fund accounting and used fund accounting software.
- Your accountant should be familiar with reporting and be able to answer questions efficiently and effectively.
- Your accountant should be a resourceful problem solver.
- Your accountant should be self-motivated.
As difficult as it is to hire a good accountant, hiring an incompetent or incompatible person is even worse. Competition for strong candidates can be challenging. You can recruit applicants by asking us, your auditor, advertise in different places, and announce broadly. You will want to assess the technical skills, communication skills, and timeliness of task completion of the applicants. You will need to spend time on reference checks and be sure to ask about relevant nonprofit accounting experience and familiarity with your accounting software. If cash flow is a significant problem in your organization, discuss it with the finalists. When deciding salary, you might want to check with salary surveys or other organizations to see what they pay.
There are many right ways to hire a great accountant, and as you do so remember to balance your need for technical skills with someone who will help you strategize what are the best decisions for the organization.