Bookkeeping System Setup or Modification
In the beginning we do the best we can. Eventually, it's time to get professional help to get our bookkeeping system on track. I've helped dozens of nonprofits upgrade their bookeeping systems so they can track grants, monitor program budgets, and get in compliance with Generally Accepted Accounting Principles (GAAP).
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.
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.
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.