Aspects of Nonprofit Bookkeeping Systems

Setting Up a New Bookkeeping System

Your chart of accounts and class structure are the foundation of your accounting system.  These are specifically designed to fit the needs of your organization.  When done correctly, tracking and reporting are quick and easy. 

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I set up my clients with all the proper accounts for an accrual based nonprofit bookkeeping system with the ability to track direct and indirect costs per program, grant, and functional expense category.  

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Tracking Grants Correctly

It should be easy to see how much is left in a grant, what expenses are allocated to it, what needs to be reimbursed, and so much more.  This information should be at your fingertips in order to manage the grant well. 

 

Creating grant budgets should be easy.  Too often nonprofits write grant proposals that are limited to specific new program expenses instead of including essential operating costs such as management time and a share of the rent.  You need an office to run a program, therefore a portion of the rent should be allocated to that program.  As a program expense, this can be included in your grants.  I can show you how. 

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Tracking Restricted Funds and Equity Accounts

Besides just tracking grant balances, a nonprofit should have their equity accounts broken up by funds with donor restrictions and funds without donor restrictions.  Ideally you have an operating reserve set up as well.  I can help you standardize these equity accounts in accordance with GAAP.

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Customized Report Generation

In your new accounting system, I can create standardized reports that you can run to track your budget to actuals, fund balances, and more. 

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Access and Information

I use Quickbooks Online.  This allows access and ownership of the accounting to the client. You can see your books, your memorized reports, and give various levels of viewing privileges to board members if desired. 

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Correct Balance Sheet Tracking

Your balance sheet should show your unrestricted and your restricted balances as well as all your other asset, liability and equity accounts.  I can help you set these up and track them correctly. 

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Tracking Payroll 

I can help you setup an effective payroll system or modify your accounting system to fit your correct payroll system. 

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Compliance with Generally Accepted Accounting Principles (GAAP)

GAAP has new requirements for nonprofits accounting standards.  I stay abreast of all changes and help my clients to stay in compliance. 

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