In episode 153 of the Woodard Report Podcast, Joe Woodard sits down with longtime colleague Megan Genest Tarnow with DaisyBee Consulting to explore what it really takes to serve nonprofit organizations well.
With more than two decades of experience at the intersection of QuickBooks and nonprofit finance, Tarno brings a grounded, practical perspective to a sector that many accounting professionals still find intimidating.
Tarno’s path into accounting was anything but traditional. With a background in theater and time spent living abroad, she entered the profession by necessity rather than design. Early in her career, she worked as an office manager for a small nonprofit, where she found herself immersed in a QuickBooks cleanup project alongside auditors and board leadership. That hands-on exposure sparked a curiosity about how accounting systems and financial decision-making actually worked together.
“I have never taken an accounting class for which I received high school or college credit,” Tarno noted, reflecting on how much of her learning happened on the job. That early experience laid the foundation for what would become a long-term specialization in nonprofit finance.
Nonprofits bring a distinct set of accounting challenges, particularly around revenue sources, donor restrictions, and grant compliance. Tarno emphasized that understanding where money comes from is often the most critical piece of nonprofit financial management. Grants that cross fiscal years, restricted donations, and program-based allocations can quickly complicate reporting if systems are not set up correctly from the start.
She also pointed out that not all nonprofits are alike. Volunteer-driven organizations often struggle with financial consistency and expectations around pricing, while professionally staffed nonprofits with audit requirements tend to better understand the value of experienced financial guidance.
From the beginning of her career, Tarno adopted fixed-fee pricing models, largely because nonprofits needed predictability. Transparent pricing helped organizations plan, but it also required careful attention to scope. Without clear boundaries, nonprofit clients may assume services are included simply because they feel mission-aligned.
Tarno found that nonprofits subject to annual audits were often her strongest clients. Clean books reduced audit friction and reinforced the value of proactive financial oversight. Many of her early engagements came directly through auditor referrals, underscoring how good accounting can strengthen the entire financial ecosystem around a nonprofit.
As artificial intelligence continues to reshape accounting workflows, Tarno sees opportunity rather than threat, particularly in the nonprofit space. While AI tools are increasingly capable of analyzing financial data, nonprofit accounting still requires judgment, context, and ongoing review.
“There’s a huge value there, right? Because someone needs to know, how did we get to those allocations? When do we need to review them? When do they need to change? How do we edit it? How do we verify that it’s correct?” Even as automation improves, nonprofit accounting still depends on human judgment to set allocation logic, maintain review cycles, and ensure grant and compliance requirements are met.
Rather than replacing accountants, Tarno believes AI will push professionals toward higher-value controller and advisory roles. The focus shifts from data entry to stewardship, system design, and interpretation.
One of the most consistent themes throughout the conversation was the relational nature of nonprofit accounting. Executive directors often lack true peers who understand both their mission and their financial realities. Regular conversations, not just reports, help leaders process decisions and move forward with confidence.
Accounting, in this context, becomes less about historical reporting and more about partnership. The product is not the spreadsheet but the decision it enables.
For accountants hesitant to work with nonprofits, Tarno offered pragmatic encouragement. While specialization is valuable, she believes every accounting professional benefits from a foundational understanding of nonprofit financial structures. Most firms already have at least one nonprofit client or board connection, and basic fluency helps avoid costly mistakes.
Her advice is simple: lead with curiosity, ask good questions, and recognize that most expertise is built through experience, not credentials.
After selling her original firm and stepping into a consulting-focused role, Tarno now works primarily with accountants who support nonprofits. The name DaisyBee Consulting reflects both personal history and a connective philosophy, helping practitioners strengthen the financial foundations of mission-driven organizations.
As this episode makes clear, nonprofit accounting is not about charity or sacrifice. It is about structure, clarity, and trust. For those willing to engage thoughtfully, it offers both professional fulfillment and meaningful impact.
🎧 Listen to the full episode at woodard.com/podcast.
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This article was written with the assistance of AI and edited by a human.