Running a charity requires careful financial management to comply with legal requirements and maintain the trust of donors and stakeholders. Hiring the right accountant is vital to ensuring your charity’s finances are in safe hands.
Here’s a comprehensive checklist to guide you in hiring charity accountants for your non-profit organisation.
Understand your charity’s needs
Before you start looking for an accountant, it’s essential to understand your charity’s specific financial needs. Does your organisation handle large donations or manage numerous small contributions? Do you have multiple funding sources, or rely on a single grant? Are there complex financial reports that need to be prepared regularly? You can find an accountant with the appropriate expertise by clearly defining your charity’s requirements.
Verify qualifications and experience
Not all accountants are created equal. Ensure the accountant you consider is qualified and has experience working with charities. Look for certifications from recognised bodies such as the Association of Chartered Certified Accountants (ACCA), the Institute of Chartered Accountants in England and Wales (ICAEW) or the Institute of Chartered Accountants of Scotland (ICAS).
Experience with charities means the accountant will be familiar with regulations such as the Charities Act 2011 and the requirements of the Charity Commission.
Check for a good fit
Beyond qualifications and experience, it’s crucial that your accountant understands and supports your charity’s mission. They should be passionate about helping non-profits and have a track record of working with similar organisations. Arrange an initial meeting to discuss your goals and see if their approach aligns with your charity’s values and objectives.
Evaluate their understanding of charity-specific issues
Charities face unique financial challenges, such as managing restricted and unrestricted funds, Gift Aid claims and reporting to multiple stakeholders. Your accountant should demonstrate a strong understanding of these issues. Ask about their experience with similar challenges and request examples of how they have helped other charities.
Review their technology and tools
Modern accounting relies heavily on technology. Ensure your accountant is proficient with accounting software and other financial tools that can streamline your processes. Software such as Sage, Xero or QuickBooks can be incredibly beneficial for managing your charity’s finances. An accountant who stays updated with the latest technology can offer more efficient and accurate services.
Approach to compliance and risk management
Compliance with laws and regulations is non-negotiable for charities. Your accountant should have a robust approach to ensuring your charity meets all legal requirements, including filing accurate annual returns and financial statements. They should also have strategies for identifying and managing financial risks, ensuring your charity’s financial health is always protected.
Consider their communication skills
Good communication is vital in an accountant. They should be able to explain complex financial matters in simple terms, helping your trustees and management team make informed decisions. Evaluate their responsiveness and willingness to answer questions during your initial interactions. Effective communication ensures transparency and builds trust.
Look for added value
The best accountants do more than crunch numbers. They provide strategic advice that can help your charity grow and thrive. Ask potential accountants how they can add value to your organisation. This could include helping with budgeting and forecasting, identifying cost-saving opportunities or advising on financial strategy.
Check references and reviews
Before making your final decision, ask for references from other charities they have worked with. Speaking with their previous clients can provide insights into their reliability, professionalism and impact. Additionally, look for online reviews or testimonials to gauge their reputation in the sector.
Assess their fees
While cost should not be the sole determining factor, it is important to consider your charity’s budget when hiring an accountant. Ensure you understand their fee structure and what services are included. Some accountants may charge a flat fee, while others may bill by the hour. Compare quotes from multiple candidates to ensure you are getting fair value for their services.
Ensure they offer ongoing support
Your charity’s financial needs will evolve, and it’s important that your accountant can provide ongoing support and advice. Check if they offer regular reviews of your financial statements, updates on new regulations and continuous strategic advice. This ongoing relationship can be invaluable in maintaining your charity’s financial health.
Get in touch
Hiring the right accountant is a significant decision for your charity. By following this checklist, you can ensure you find an accountant who not only meets your immediate needs but also supports your organisation’s long-term goals. A good accountant can be a trusted partner to positively impact your mission.
At JCS Accountants, we specialise in providing tailored accounting services to charities. Our team is dedicated to supporting non-profit organisations with expert advice and comprehensive financial management.
Contact us today to learn how we can help your charity achieve its financial goals.
