Do you really need to document accounting policies and procedures, or are there times when formalized accounting procedures just aren’t necessary? The answer is probably what you’re expecting, but don’t really want to hear.

Formal accounting policies are always necessary! (And we’re not just saying that because we’re accountants.)
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Many small business owners think they don’t need to write down their accounting processes and procedures because with limited staff they may only have one person doing everything bookkeeping-related and that person doesn’t need to tell themselves what they do regularly. However, even small companies open themselves up to significant risk if they don’t document their accounting policies because doing so is a fundamental element of doing business regardless of the size of the organization. 

​I recently heard about a growing trend that’s wreaking havoc in the hiring market – AI augmented job applications. According to numerous sources, job seekers armed with newly emerging AI tools are now applying to jobs at unprecedented rates. They are using AI to submit mass applications, generate multiple versions of their resume, and even write customized cover letters for them. In fact, according to recent data, approximately half of all job seekers are leveraging AI tools during their job search, which has resulted in more than double the number of applicants for any given position.
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And yet, grappling to cope with a huge influx of job applicants to find the right match is not a new topic for hiring managers. Let’s take a look at how we got here and discuss how hiring a recruiter can help you weather the storm! 

​Most nonprofit leaders understand that nonprofit accounting is different than for-profit accounting. However, if they’re being honest, they may not entirely understand how it’s different, nor could they necessarily explain exactly what their nonprofit accountant does.

And yet, having this kind of information is critical for many reasons, including:

• Overseeing staff across the areas of accounting and finance.
• Hiring into the role to replace your former accountant or meet the increasing demands of a growing organization.
• Articulating the benefits of using a third-party accounting service or employing in-house accounting staff to key stakeholders.
• Maintaining credibility with donors, sponsors, and partners.
• Upholding internal controls to safeguard the organization against errors and financial malfeasance.
• Obtaining funding through public and private grants.

​Now that you know why understanding the role is so important, let’s dive into what a nonprofit accountant does so you can be better informed!

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• Will an outsourced accountant be qualified to handle our company’s specific financial needs?
• Will they work well with the rest of our staff and leadership – completing deliverables, meeting deadlines, and interacting effectively?
• Will they be available when we need to talk to them and explain things in a way that’s easy to understand?
• Will they implement accounting policy and procedure improvements to benefit the overall organization?
• Will they be committed to the future growth of our business?

These are all examples of the types of questions business leaders ask when evaluating whether to outsource and deciding which accounting company to choose when they do. Most of these are predicated on the idea that finding the best accounting company or the best accounting consultant will be the “golden ticket” to finding success. Why? Because business owners too often assume that using a top accounting company with the most experienced team of accountants is automatically going to guarantee their success.
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And, while it is true that you’ll likely have a greater chance of success when using a well-rated and reputable accounting company, it doesn’t necessarily ensure that you’ll achieve the outcome you’re hoping for on its own. Something else is required to increase the likelihood that your accounting engagement will be successful – good communication!

How important is a culture fit in hiring? As it turns out, it isn’t!
In almost a decade as an accounting/finance recruiter I’ve gradually come to realize something is far more important than finding the right cultural fit for your organization. I’d like to make the case for hiring for a “culture add” rather than a “culture fit.” 

​What makes the best accountants great at what they do? Is it financial acumen? Experience across various accounting functions? Years of expertise? Industry-specific knowledge? Sure, those are certainly important, especially at the leadership level!
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However, when you need to hire an accounting manager, there’s one indicator of success that often gets overlooked – being a good listener.

Nonprofit leaders have a reputation of being strong in the areas of compassion, communication, and ambition, but being weaker in their financial acumen. And, you know, that isn’t a bad thing at all! No one can be the best at everything, which is why we have so many nonprofit clients that bring us in to supplement their team of passionate advocates and leaders with our financial skills and experience.
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We understand the intricacies of how nonprofit accounting differs from for-profit accounting and bring that expertise to every engagement. We do what we do best – cleaning up the books, ensuring grant accounting regulations are followed, improving financial reporting for stakeholders, maintaining cash flow to fund programming, and aiding in growth planning initiatives – so that nonprofit leaders can do what they do best – leading the kinds of organizations that can change the world!

But for leaders that want to better understand what’s most important in nonprofit accounting, we’re always willing to lend our expertise to help them grow professionally. So, today we’re providing a high-level overview of what makes nonprofit accounting unique to offer a sort of crash course in NFP accounting.