How to Switch Bookkeepers Without Disrupting Your Operations
Whether your current nonprofit bookkeeper is retiring, you’re not getting the insight you need, or your organization is growing and your needs have changed—there may come a time when you consider switching bookkeeping providers.
Transitioning to a new nonprofit bookkeeper can feel daunting, especially for teams with limited capacity. But with a bit of planning and the right anticipatory questions, it can be a smooth process that ultimately sets you up for stronger financial management. Here’s what to consider when making the switch:
1. Know Why You’re Switching Bookkeepers
Start by identifying the main reason you’re changing bookkeepers. Is it a capacity issue? Communication breakdown? Outdated systems? Clarifying your goals will help you choose the right nonprofit bookkeeping partner and set clear expectations from the beginning.
2. Plan the Transition Timing if you Can
Ideally, transitions happen at a natural break point, like the start of your organization’s new fiscal year or quarter. But if issues are urgent, it’s okay to switch bookkeepers midstream. Just make sure you’ve clarified deadlines and deliverables on both ends so nothing gets lost in the shuffle.
3. Take Stock of Key Data
Before bringing on a new bookkeeper for your organization, gather this key information to make the transition smoother:
- Access to your accounting software (e.g. QuickBooks Online)
- Copies of your most recent financial statements
- Payroll provider login credentials
- List of recurring transactions and approvals
- Internal policies around approvals, spending limits, and restricted funds
Gathering this data will help your new bookkeepers to hit the ground running.
4. Ask the Right Questions in Advance
When evaluating a new nonprofit bookkeeper, remember that you’re not just hiring a technician; you’re bringing on a partner. Here are some questions to pose:
- How do you work with nonprofits?
- What’s your communication cadence?
- Do you provide help interpreting reports or just deliver them?
- How do you ensure continuity during vacations or staffing changes?
- What is your process for month-end close and reconciliation?
5. Clarify Roles & Responsibilities
During onboarding, clarify what your team is responsible for (e.g. uploading invoices, classifying transactions) versus what the bookkeeping provider will handle. This prevents confusion and helps you stay on track for timely reporting.
6. Plan for a Grace Period
Even with a smooth transition, there may be a short period where not everything runs perfectly. Build in a little patience and encourage open communication. A good bookkeeper will ask questions and dig in deep early on to set things up right.
7. Always Retain Ownership of Key Accounts
Your organization should always retain ownership of your QuickBooks account, payroll provider, and bank feeds. If your current bookkeeper holds any admin-level access, make sure it’s transferred before the handoff is complete.
8. Capitalize on Opportunities
Switching bookkeepers isn’t just a paperwork shuffle, it’s an opportunity to strengthen your financial systems and build confidence in your numbers. The right provider won’t just keep the books clean; they’ll help you use your financial reports to make more informed decisions throughout the year.