Choosing the wrong accounting provider is usually a costly affair. Bypassing good due diligence is not recommended. Below are my 3 top lessons nonprofits learn from making the wrong choice.

Inadequate Nonprofit Knowledge Leads to Errors:

Lack of nonprofit expertise is about more than not having compliant financial statements. Failing to understand how to properly account for all types of expenses can cost money. Is the cost allocation plan being followed? Are expenses being charged to contracts and grants even allowed? Do the numbers support knowing how much has been billed to grants by line item? Are you under or overspent? Providers without expertise in nonprofit accounting can cost your organization thousands of dollars.

Poor Communication Causes Delays:

A lack of responsiveness or clear communication can result in missed deadlines and inaccurate reporting. Not only that but confusion. Who is responsible for what is key to a streamlined workflow. Ignoring putting in the work to define roles will cost you down the road.

Cheaper Isn't Always Better:

Choosing the lowest-cost option can compromise quality, leading to costly mistakes that take time and resources. "You get what you pay for" is no more apparent than with outsourced nonprofit accounting services.

Focus on expertise, not on cost. Check references and read reviews. Spend the time fully considering the qualifications and benefits of bringing on the right accounting partner.