In short

Nonprofit accounting adds reporting that boards and funders rely on: statements that separate funds with and without donor restrictions, functional expense reports, budget-to-actual comparisons and grant reports. It also includes consistent allocation of shared costs such as salaries and rent, cash planning around grant payment timing, and preparation of the schedules an auditor or Form 990 preparer will request.

Board-ready reports

Board members are volunteers and need clear numbers. Our monthly package typically includes:

  • A statement of financial position separating funds with and without donor restrictions
  • A statement of activities with budget comparison
  • A functional expense summary: program, management and general, fundraising
  • A short commentary on variances and cash

Allocating shared costs

Salaries, rent and software serve several functions. We agree a written allocation basis, such as time records for staff or square footage for rent, and apply it the same way every month. Consistency is what makes year-over-year comparisons and grant reports credible.

Grant reporting

Funders often require reports on their own templates and schedules. Because spending is already coded to each grant, preparing a report becomes a matter of filtering the ledger rather than rebuilding it.

Audit and review readiness

If your organization needs an audit or review, we prepare the reconciliations, schedules and supporting documents the reviewer asks for at the start, which shortens the engagement.

Annual information return

The IRS lists the annual filing requirements for exempt organizations and explains unrelated business income rules. We prepare the financial schedules the return needs and flag income that may need a closer look.

Reporting we prepare

Boards receive statements by fund and program, with budget comparisons and restricted balances clearly shown.

Key terms

Definitions for terms used on this page:

  • Exempt and Non-Exempt Employees: Non-exempt employees must receive overtime under federal law; exempt employees meet specific tests that remove that requirement.

Nonprofits problems this addresses

  • Restricted grants and donations must be tracked separately from general funds
  • Board members and funders expect program, management and fundraising cost splits
  • Donors need written acknowledgments for gifts above IRS thresholds
  • Volunteer treasurers change and institutional knowledge is lost
  • Annual Form 990 information depends on clean, categorized books