Managing the accounting of a non-profit organization (NPO) in Quebec has nothing to do with that of a private company. Government grants, donations, accountability to funders, ASNPO standards, mandatory audits – the challenges are many and very specific. Finding an accountant specializing in NPOs then becomes a strategic decision for the sustainability of your organization. At Bankeo, we have matched more than 12,000 entrepreneurs and executives with accountants adapted to their reality through our network of 1,500+ partner firms across Quebec.
A non-profit organization operates in a fundamentally different financial environment than a private company. Its income comes from multiple and often restrictive sources: government grants, foundation donations, fundraising campaigns, volunteer contributions and membership dues. Each funding source has its own reporting requirements.
A general accountant, even a competent one, can quickly find himself overwhelmed by the particularities of NPOs. Here are the main reasons to choose an accountant who specializes in industry rather than a generalist for your organization.
Private sector NPOs in Canada are required to apply accounting standards for not-for-profit organizations (ASNPO), which is Part III of the CPA Canada Handbook. These standards differ significantly from accounting standards for private enterprises (ASPE Part II) and IFRS (Part I). An accountant who only works with SMEs is not necessarily proficient in ASNPO.
Unlike businesses, NPOs often manage earmarked funds - money received for a specific purpose. For example, a $50,000 grant for a youth program cannot be used to pay rent. A specialized accountant knows how to account for these funds separately and produce the reports that funders require.
Each funder (Quebec government, foundations, Centraide, federal agencies) imposes its own forms, deadlines and submission formats. The specialized accountant is aware of these requirements and prepares the required appendices: expense claim reports, breakdown by program, sources of funding.
Since 2024, the Quebec government has raised the grant threshold from $150,000 to $500,000 at which a financial audit is mandatory. This relief affects nearly 2,000 community organizations that can now opt for a less expensive review engagement.
Non-profit organizations in Quebec are subject to several legal obligations, both provincial and federal. Understanding these obligations is essential to choosing the right accountant. For an overview of the costs of accounting services in Quebec, see our detailed guide.
Even though a non-profit organization is generally exempt from income tax, it must still file returns:
If your NPO makes taxable sales, it must generally register for the GST and QST. The good news is that NPOs that are not registered charities can claim a rebate of 50% of the GST paid on certain eligible purchases (the public service bodies' rebate method). This is an important tax advantage that only an accountant who knows the sector well will be able to fully exploit.
Like any employer, an NPO that pays salaries must:
An accountant specializing in NPOs also understands the particularities of volunteer work and reimbursement of volunteer expenses, which should not be confused with remuneration. To better understand business accounting in general, visit our services page.
Every NPO must keep its records and supporting documents for a period of six years after the last year to which they relate. These documents must be kept at the organization's establishment or other designated location.
The CPA Canada Handbook is divided into four parts. Private sector NPOs use Part III - Accounting Standards for Not-for-Profit Organizations (ASNPO). According to CPA Canada, these standards provide a framework for the presentation of NPOs' financial statements and introduce unique concepts.
An accountant who regularly works with NPOs knows these standards by heart and will know how to apply them correctly. This avoids costly corrections during the audit or review engagement.
Depending on the size of your NPO and your sources of financing, you will need a different level of assurance on your financial statements. Your specialist accountant will guide you to the right option. To learn more about audit engagements in general, check out our guide.
| Criterion | Compilation Engagement | Review engagement | Audit |
|---|---|---|---|
| Level of Assurance | No insurance | Moderate Assurance | Reasonable Assurance (High) |
| Work carried out | Compilation of the data provided | Enquiries + Analytical Processes | Comprehensive verification (confirmations, inventories, tests) |
| Approximate cost | $1,500 - $5,000 | $3,000 - $10,000 | $5,000 - $20,000+ |
| When Needed | Petits OBNL (< 100 000 $ de revenus) | NPOs receiving $100,000 - $500,000 in grants | NPOs receiving $>500,000 in government grants. |
| Production time | 2 - 4 weeks | 3 - 6 weeks | 4 - 10 weeks |
| Who does it | CPA mandatory | CPA mandatory | CPA auditor mandatory |
To learn more about the differences between engagements, see our article on the compilation engagement and the notice to reader.
If your organization receives grants from multiple ministries or foundations, each funder may require a different level of insurance. It is the highest level required that determines the type of mission required. An accountant specializing in NPOs will be able to identify the right requirement from the start.
Bankeo matches you free of charge with a CPA who understands the reality of community organizations in Quebec.
Find my accountantFees vary depending on the size of the organization, the complexity of the funding sources, and the type of engagement required. Here is a reference grid based on current rates in Quebec. For a full comparison with SMB rates, check out our 2026 accounting rate guide.
| Service | Petit OBNL (< 250k $) | Medium NPO (250k - $1M) | Large NPO ($> $1M) |
|---|---|---|---|
| Monthly bookkeeping | $150 - $300/month | $300 - $600/month | $600 - $1,200/month |
| Compilation Engagement | $1,500 - $3,000 | $2,000 - $5,000 | $5,000 - $8,000 |
| Review engagement | $3,000 - $5,000 | $5,000 - $10,000 | $10,000 - $15,000 |
| Full audit | $5,000 - $7,500 | $7,500 - $20,000 | $20,000 - $35,000+ |
| Tax Returns (CO-17 + T2) | $300 - $500 | $500 - $1,000 | $1,000 - $2,000 |
| Accountability (by donor) | $300 - $800 | $500 - $1,500 | $1,000 - $2,500 |
These rates are estimates based on the ranges observed in Quebec in 2026. The actual cost depends on the number of transactions, the number of programs managed, and the complexity of your organization's funding sources.
Choosing an accountant for an NPO does not follow the same criteria as for an SME. Here are the key elements to evaluate, in addition to our guide to choosing a business accountant.
Ask how many non-profit organizations the accountant or firm is supporting. An accountant specializing in NPOs should serve at least a dozen. Check that they are familiar with ASNPO and are experienced in preparing reports for different funders.
A nonprofit that primarily receives government grants has different needs than one that relies on individual donations or own-source revenue. The accountant should understand the requirements of each of your sources of income.
If your NPO requires an audit or a review engagement, the accountant must be a CPA (Chartered Professional Accountant) registered with the Ordre des CPA du Québec. An accounting technician cannot carry out these missions.
NPOs often use different software than SMEs. Some tools such as Sage Accounting or specialized solutions allow you to manage allocated funds and accounting programmatically. A good NPO accountant is familiar with these tools and can guide you in using them. Check out our comparison of accounting software in Quebec.
An accountant who works with nonprofits should be able to provide you with references from organizations similar to yours - same industry, comparable size, same types of grants.
Beyond bookkeeping and the production of financial statements, an accountant specializing in NPOs offers strategic services:
Every government or private grant comes with reporting obligations. The Accountant prepares the financial schedules, expense claim reports and program breakdowns required by each funder.
Eligible NPOs can claim a rebate of 50% of the GST paid. The accountant calculates and claims these reimbursements, which can represent thousands of dollars recovered each year. It also manages the specific tax obligations of NPOs.
A good NPO accountant doesn't just look at the past. It helps you plan your projected budgets by program, anticipate cash flow, and prepare project budgets for grant applications.
Provisional budgets are a key element of grant applications. An accountant who knows your organization well can prepare realistic and credible budgets that strengthen your funding cases.
Many small NPOs rely on non-specialized staff for day-to-day financial management. A specialized accountant can train your team on good bookkeeping practices, how to use accounting software, and how to prepare supporting documents.
Quebec has thousands of NPOs working in a wide variety of sectors. A specialized accountant understands the financial particularities of each of these sectors, according to data from ESPACE OBNL :
Finding an accountant who understands the realities of the community sector is not easy. Many accounting firms offer corporate services without in-depth expertise in the non-profit sector. This is where Bankeo comes in.
As an accounting broker, Bankeo matches you free of charge with an accountant adapted to the reality of your organization. Our process is simple:
Since 2023, we have matched more than 12,000 entrepreneurs and executives with adapted accountants through our network of 1,500+ firms across Quebec, with a satisfaction rate of 95%+.
Free service for heads of organizations. Personalized pairing according to your mission, your sources of funding and your budget.
Find my accountantThere is no legal requirement to hire an accountant, but an NPO must file tax returns (CO-17, T2) and financial statements. As soon as your organization receives grants, a professional accountant becomes practically indispensable for accountability.
The audit provides reasonable (high) assurance on your financial statements and costs between $5,000 and $25,000+. The review engagement offers moderate assurance, costs between $3,000 and $15,000, and is sufficient for most NPOs receiving less than $500,000 in government grants.
Since 2024, the Quebec government has required a financial audit for NPOs receiving more than $500,000 in government grants (provincial or municipal). The previous threshold was $150,000.
For a small NPO (less than $250,000 in revenue), count about $150 to $300 per month for bookkeeping and $1,500 to $3,000 for an annual compilation mission. The annual total is usually between $3,500 and $7,000.
Generally not. An NPO is exempt from income tax as long as it complies with the conditions set out in the law (no distribution of surplus to members, activities in line with its mission). However, he must file his tax returns even if he is exempt.
Private sector NPOs apply the PCA Canada Handbook (Part III). They can also choose IFRS (Part I), but ASNPO is the most common standard. A specialized accountant knows these standards and knows how to apply them correctly.
Yes, partially. Qualifying NPOs (public service bodies) can claim a 50% rebate of the GST paid on certain purchases. The QST rebate varies depending on the type of organization. A specialized accountant maximizes these reimbursements.
An NPO must keep all of its accounting records, vouchers, bank statements and receipts for six years after the last year to which they relate. For donation receipts (charities), retention is two years after the revocation of registration.
Absolutely. Bankeo has a network of 1,500+ partner firms across Quebec, including several specializing in NPOs and community organizations. The service is free for agency leaders and allows you to compare multiple accountants before choosing.
An NPO is an organization that does not distribute its surpluses to its members. A registered charity is a non-profit organization that has obtained registration with the CRA to issue tax receipts to donors. A charity's accounting obligations are stricter (3.5% disbursement quota, Form T3010).
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