Accounting for Non Profits
Our accounting for non-profit services involves a unique set of activities to ensure proper financial management, transparency, compliance, and reporting for organizations that operate for charitable, religious, educational, or social purposes.
- Record and track contributions, donations, grants, and pledges received from individuals, corporations, foundations, and government agencies. Record and value donated goods and services received by the organization.
- Segregate financial activities into different funds, such as general funds, program funds, and restricted funds, to track resources for specific purposes.
- Manage membership dues, subscriptions, and fees, if applicable.
- Ensure compliance with terms and conditions of grants and contracts by tracking and reporting how funds are used and achieving the intended outcomes.
- Monitor and manage funds with donor-imposed restrictions to ensure that they are used in accordance with the donor's intentions.
- Categorize net assets as unrestricted, temporarily restricted, or permanently restricted based on donor restrictions and organizational needs.
- Allocate expenses across different programs and administrative functions to demonstrate how resources are used to fulfill the organization's mission.
- Allocate expenses between program services, fundraising, and administrative functions to provide a clear breakdown of cost distribution.
- Calculate the cost of delivering specific programs and services to assess their efficiency and impact.
- Prepare financial statements, including the statement of financial position (balance sheet), statement of activities (income statement), and statement of cash flows.
- File Form 990 (or Form 990-EZ) with the Internal Revenue Service (IRS) to maintain tax-exempt status and provide financial information to the public.
- Engage in annual financial audits by independent auditors to verify the accuracy of financial statements and compliance with accounting standards.