Affordable & Dedicated Nonprofit Accounting Services
If you are looking for reliable and professional nonprofit accounting services, look no further! We work exclusively with nonprofit organizations. We offer tailored nonprofit accounting services to give your organization tools to make better financial decisions and improve efficiency.
Reliable Nonprofit Accounting
We understand the important role accounting plays in your decision-making and the ultimate success of your organization.
Maintaining a steady stream of funds, the pressure to show results, attracting and retaining the right kind of talent, accurate accounting, and reliable bookkeeping, and staying compliant with complex federal and state regulations are some of the challenges nonprofits face.
We believe that outsourcing your administrative and compliance requirements will save you time and money. Our nonprofit accounting services are tailored to specific and unique needs. We will help your nonprofit to:
- reduce overhead and operating expenses,
- save training costs,
- improve efficiency,
- provide pertinent information that you can use to make well-informed decisions, and so on.
Ask us about our nonprofit bookkeeping services.
Affordable Nonprofit Accountant
Your organization will benefit from having an experienced CPA at affordable prices.
We cut down on the time it takes to do the job efficiently.
Our extensive experience in the nonprofit sector gives us an insider's view of how accurate accounting can help in your decision making thereby saving you money.
Many nonprofits rely on volunteers to manage their books and accounts. Each time a volunteer or accountant leaves, training a replacement is a hassle your nonprofit can avoid by hiring a nonprofit accountant.
Nonprofit Accounting Frequently Asked Questions
1What is the purpose of nonprofit accounting?
Nonprofit organizations are subjected to more intense scrutiny than for-profit businesses. They have specific disclosure requirements that they must meet to maintain their tax-exempt status. As such, in order to ensure transparency and efficient management of a nonprofit, nonprofits must track and report where its revenues are coming from, the funds it received, and account for how those funds were used and on what - hence the importance of nonprofit accounting.
2What is the statement of financial position?
A statement of financial position, which is used by nonprofits, is similar to what is typically called a balance sheet. Whereas a balance sheet represents net assets and owner’s equity of a for profit entity, a Statement of Financial Position provides information on the assets and liabilities that a nonprofit organization.
3Is nonprofit accounting different from for-profit accounting?
The principal difference is that nonprofit accounting focuses on accountability rather than profitability. A for-profit business tracks revenue and expenses related to the sale of products or services in a single self-balancing account, whereas, a nonprofit may maintain several accounts based on the source of funds received and also must track the functional areas that its expenses fall into. A nonprofit’s revenue is made up of donations and grants. Given that oftentimes grants come with strings attached on how the funds must be used, a nonprofit has an obligation to keep a record to prove that grants and other donations received, were used accordingly or used only on permitted purposes.
4Are Financial Reports Generated by a nonprofit different from a for-profit business?
Yes. For example, a for-profit business maintains a balance sheet that tracks shareholder equity as well as assets and liabilities. Nonprofits do not have shareholder equity. Nonprofits on the other hand often prepare a statement of functional expenses which breaks expenses down into funds spent on the organization’s charitable purpose, fundraising expenses, and management and general. For-profits do not. Nonprofits often have different rules and accounting standards they must follow than for-profits. There can even be differences in accounting standards for different types on nonprofits (e.g. universities, hospitals, social welfare groups).
5What is fund accounting and what is its purpose?
Fund accounting enables nonprofit organizations to properly categorize source of funds received in multiple ledgers in a bid to avoid spending funds on unintended activities or better monitor restrictions that often come attached with funds received. To remain compliant with GAAP and FASB 116/117 and properly report a breakdown of its net assets on its annual IRS Form 990 filing, nonprofit organizations must group their funds into unrestricted and restricted fund categories.
6What accounting standards do nonprofits follow?
Nonprofits follow Generally Accepted Accounting Principles, GAAP, as laid out by standard bodies such as the Financial Standards Accounting Board (FASB).