Weathering the Storm: How Devote Can Address the Accountant Shortage for Nonprofits
The nonprofit sector is facing a brewing storm as a severe accountant shortage threatens to destabilize their financial operations. This crisis, highlighted in a recent blog by Jerilyn Dressler, CPA, Director of Strategic Partnerships at Your Part-Time Controller, LLC (YPTC), underscores the urgency for nonprofits to adapt and find innovative solutions to manage their accounting needs.
The Perfect Storm
According to the American Institute of Certified Public Accountants (AICPA), approximately 75% of the CPA workforce in the U.S. reached retirement age in 2020. Coupled with a decline in accounting graduates and CPA candidates, this has led to a significant shortfall in qualified accountants. Nonprofits, which often struggle to offer competitive compensation, are particularly vulnerable to this shortage. The implications are severe: increased costs for annual audits and Form 990 filings, difficulties in finding willing CPAs, and overall challenges in maintaining financial transparency and compliance.
Preparing for the Future
To address the accountant staffing issue and prepare for the future, nonprofits should take proactive steps:
Plan Ahead: Develop succession and backup plans for accounting personnel. Partner with high-quality outsourced accounting firms experienced in nonprofit financial management.
Document Processes: Ensure all financial processes are thoroughly documented, including policies and procedures.
Communicate with Funders: Discuss accounting challenges with funders and seek infrastructure funding to support accounting needs.
Embrace Technology: Utilize automation and technology to increase productivity and reduce the burden on accounting staff.
Offer Additional Benefits: Provide flexible work arrangements and other perks to attract and retain accounting talent.
Devote: The Beacon in the Storm
In this challenging landscape, Devote emerges as a vital tool for nonprofits, offering a comprehensive expense management and accountant preparation platform designed to alleviate the pressures caused by the accountant shortage. Here’s how Devote can help nonprofits navigate these turbulent times:
Automated Expense Management: Devote's platform streamlines expense tracking, enabling nonprofits to manage their finances with greater efficiency and accuracy. By automating routine accounting tasks, nonprofits can reduce their reliance on scarce accounting talent and ensure that their financial records are always up to date.
Enhanced Financial Reporting: Accurate and timely financial reporting is crucial for audits and regulatory compliance. Devote simplifies the process by generating detailed financial reports that can be easily reviewed and audited, helping nonprofits prepare for audits and meet regulatory requirements without the need for extensive manual effort.
Integrated Donation Tracking: Devote allows nonprofits to embed a donation widget on their websites, facilitating seamless fundraising directly into their financial system. This integration not only boosts fundraising efforts but also ensures that all incoming funds are accurately tracked and reported.
Cash Transaction Management: For international-centric nonprofits, tracking cash transactions can be a daunting task. Devote's platform includes robust features for managing cash transactions, providing a comprehensive view of all financial activities and ensuring transparency and accountability.
Budgeting and Forecasting: Devote enables nonprofits to create detailed budgets and forecasts, helping them plan for future financial needs. By anticipating higher costs for audits and accounting services, nonprofits can better manage their finances and avoid unexpected financial shortfalls.
Support for Restricted Funds: Managing restricted funds can be complex and time-consuming. Devote's platform simplifies this process by providing tools to track and report on restricted funds, ensuring compliance with donor restrictions and enhancing financial transparency.
Conclusion
The accountant shortage presents significant challenges for the nonprofit sector, but with the right tools and strategies, these challenges can be managed. Devote offers a comprehensive solution to streamline financial management, enhance transparency, and ensure compliance, helping nonprofits weather the storm and continue their vital work. By adopting Devote, nonprofits can shore up their defenses and navigate these turbulent times with confidence.
Learn more about how Devote can support your nonprofit's financial management needs and help you overcome the challenges posed by the accountant shortage
