A nonprofit’s bookkeeping financial statements include the statement of financial position, statement of activities, and statement of cash flows. For-profit financial statements include the balance sheet, income statement, and statement of cash flows. Accounting software designed for general use is not appropriate for the specific accounting needs of nonprofit organizations.
When you let us handle your nonprofit’s bookkeeping needs, you will be paired with one of our staff bookkeepers whose expertise is best matched to your needs. Fraud nonprofit bookkeeping is, unfortunately, a fact of life that nonprofits are not immune to. Creating internal policies and controls will significantly improve your fraud protection.
Develop a Long-term Strategic Plan
Invoices help nonprofits track funds and give donors proof of their gifts. Once a year, you’ll send the required documents to an accountant to submit Form 990 to the IRS and provide tax documentation to staff. You will also need an accountant to audit your financial statements and help work with you on future financial plans.
Your nonprofit budget is the planning document used to predict expenses and allocate resources for your organization. It details both the costs that your organization will incur as well as the revenue you expect to receive over a set period of time, usually a year. Another aspect of nonprofit accounting that helps organizations stay accountable to their finances is the nondistribution constraint.