TCCFO’s monthly reports provide excellent insights into our organization’s finances. They are well formatted, intelligently organized, and give me the information I need to keep the organization running. Any accountant can do your books, but The Charity CFO is more than just a nonprofit CPA. Get the accurate reports you need and expert insights into what those reports mean for your nonprofit.
Outsourcing also offers many benefits that you can’t get with an in-house bookkeeper.
Timely and accurate record-keeping is one of the most important responsibilities every nonprofit organization faces.
The first and most important principle of bookkeeping is accurate record keeping.
A skilled bookkeeper will be able to advise you on the finest accounting software for your organization.
Just like for-profit businesses, nonprofits need to spend money on accounting.
Specific Accounts for Non Profits
Restricted funds are donations earmarked by the donor for specific programs or purposes.
The average price of outsourcing your bookkeeping ranges from about $2,000 to $3,500 per month depending on the number of transactions and complexity of services required.
That’s why we recommend most nonprofits work with a payroll processing service rather than trying to do it themselves.
Nonprofits should strive to keep overhead costs manageable while maintaining the organization’s effectiveness.
They build credibility with foundations, attract major gifts, and help you spot cost overruns before they derail programs.
To learn more about exactly which taxes your tax-exempt nonprofit might still be on the hook for, consult IRS Publication 557, or better yet, consult with a nonprofit tax specialist. They’ll have experience helping organizations like yours minimize their tax bill and make sure you aren’t breaking any tax code rules. The IRS provides this handy questionnaire to help you figure The Key Benefits of Accounting Services for Nonprofit Organizations out exactly which parts of the tax code apply to your organization, and which form you’ll use to apply for tax-exempt status.
In just 12 weeks, you’ll get:
It provides the necessary functionality for small to medium-sized nonprofits.
These features include nonprofit reporting, GAAP compliance, and simplified tax filing for organizations.
The purpose of grant tracking is to ensure that grant funds are properly managed, used according to the grantor’s specific conditions and requirements, and reported accurately.
Most nonprofit-friendly accounting software like QuickBooks Aplos or Nonprofit Treasurer will allow you to generate financial statements automatically.
After years and years of medical school (plus continuing education), there are plenty of long hours and stressful situations day-to-day. Medical professionals face lots of unique financial challenges as well…workforce shortages, billing errors,… Download your copy of the free guide to find out how by filling out this form. Nonprofits exist to make positive improvements in their community (or however far their impact reaches).
Develop annual budgets and cash-flow forecasts to manage uncertainty
Through professional development programs, conferences, and workshops, nonprofit accounting professionals should stay updated with the latest accounting regulations, standards, and best practices. This helps ensure that accounting practices align with industry standards and evolving regulations. NGO (Non-Governmental Organization) accounting follows similar principles to nonprofit accounting but often deals with international funding sources and reporting requirements. One of the most nuanced challenges in nonprofit accounting is the art of cost allocation. Determining how to distribute these expenses equally becomes a complex puzzle when multiple programs share staff, space, and resources. This split helps donors see how much of their money goes directly to the cause.
See Bench’s features in action
Taking care of overhead before seeking out donors for a nonprofit demonstrates financial responsibility and a commitment to efficiency—important decision-making factors for potential donors. Cash basis is the more convenient method when your organization is new and small, but you should consider fund accrual accounting for the long term. The term “overhead” has historically had a negative connotation in the nonprofit sector, since spending funding on overhead was seen as taking that funding away from mission-critical work. However, overhead isn’t something to be afraid of—in fact, some overhead spending is necessary and good for your organization to operate. Take our 2-minute survey to find out if outsourced accounting and bookkeeping is a good fit for your organization. Most organizations will also need to track payments they are owed (accounts receivable), bills that they haven’t paid (accounts payable).
Expenses and Cash Flow
Learn more about the https://nerdbot.com/2025/06/10/the-key-benefits-of-accounting-services-for-nonprofit-organizations/ various scenarios in which a nonprofit may be unable to use grant funds on costs that the organization thought were acceptable and what the organization should do. Bureau of Labor Statistics, there are approximately 65,000 people working in accounting and finance fields at nonprofit organizations. Your nonprofit should regularly compare your budget to the actual income and expenses throughout the year. Combine historical data, your current budget, and your actuals for the year-to-date to ensure your budget is on track, allowing you to change course as needed throughout the year. This form is required for most tax-exempt organizations that receive more than $200,000 in annual revenue or hold more than $500,000 in assets.
How You Can Do Good Even Better (The Essential Role of a Nonprofit Chart of Accounts)
Nonprofit bookkeeping is the process of systematically recording, organizing, and tracking a nonprofit’s financial activities. It allows your organization to monitor its spending, fundraising, assets, receivables, payables, and other transactions essential to its operations. GnuCash is a free, open-source accounting software supporting personal and small business accounting. While it’s not specifically designed for nonprofits, it has the flexibility to be used by organizations that need powerful accounting tools.
