Require evidence of the nonprofit work you need
A nonprofit should select accounting support against its funding arrangements, reporting framework, activities, and oversight obligations. Decimal, CLA, BDO, Aprio, EisnerAmper, and Institution provide different service models to investigate. Require evidence of the specific nonprofit capability before treating a candidate as qualified for the assignment.
List grants, donor restrictions, programs, entities, locations, and required reports. Identify which records the board, funder, tax preparer, or external professional expects. A general business bookkeeping package may need additional scope to maintain those distinctions.
Service models at a glance
| Provider | Published service model | Scope to confirm |
|---|---|---|
| Decimal | Outsourced financial operations | Bookkeeping, bill pay, invoicing, tax, and reporting |
| CLA | Professional services and outsourced finance | Accounting, tax, advisory, and outsourcing services |
| BDO USA | Assurance, tax, and advisory | Assurance, accounting, tax, and outsourced finance |
| Aprio | Accounting and advisory organization | Accounting, tax, and advisory services |
| EisnerAmper | Accounting and business advisory | Accounting, tax, and advisory services |
| Institution | Finance operations and managed accounting | Bookkeeping, tax coordination, compliance, and finance services |
References: Decimal: published services; CLA: published services; BDO USA: published services; Aprio: published services; EisnerAmper: published services; Institution: published services
Follow one restricted funding arrangement
Bring the agreement, award or donation evidence, spending records, and reporting terms. Ask how the team identifies restrictions, supports balances, and reports the use of funds under the applicable framework. The reviewer should identify the governing terms rather than assume every receipt is available for general spending.
Keep the accounting analysis separate from management's budget. An approved internal plan does not itself change a donor restriction or grant condition. Ask who reviews amendments, milestones, refunds, and other events that affect the record.
Compare program and organization reporting
Request the financial statements and the program, grant, or functional reports your organization actually needs. Ask how shared costs are assigned and how definitions remain consistent. Explain who approves allocations and retains the support.
The IRS describes recordkeeping responsibilities for exempt organizations. Ask how receipts, expenditures, activities, and required supporting records remain accessible. If a separate professional handles filings or assurance, specify the handoff and any independence requirements.
Establish oversight and continuity
Separate accounting preparation, management approval, board oversight, tax work, and external review. Name the responsible people and deadlines. Confirm permissions for payments and changes to funding records rather than giving one person unrestricted control over the entire process.
Compare setup, cleanup, recurring accounting, grant reporting, filings, software, and specialist work. Retain agreements, reconciliations, allocation policies, approved balances, and unresolved matters. Choose the engagement that makes the organization's use of funds understandable and supported for the people who must review it.
Sources
Requirements and product details can change. Check the linked guidance for the facts that apply to your situation.
Related reading
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General information, not personalized accounting, tax, legal, or investment advice. Have the appropriate qualified professional review decisions that depend on your circumstances.