How it runs for nonprofits, charities and associations
Restricted cash held in separate accounts is reconciled to the restricted fund balance so the two agree.
What is a bank reconciliation service?
A bank reconciliation service compares the transactions in your accounting software with the transactions on your bank and credit-card statements and explains every difference. The goal is a ledger balance that agrees with the statement after timing items such as outstanding checks and deposits in transit. Done monthly, it catches missing entries, duplicates, bank errors and fraud early.
What we handle for nonprofits, charities and associations
- Reconcile operating, reserve, restricted and card accounts every month
- Match platform payouts to individual gifts net of fees using payout reports
- Apply government ACH receipts to the claims they settle
- Reconcile separate restricted bank accounts to restricted fund balances
- Record stock gift proceeds and broker fees against the donor's gift
The KPI that matters here
Zero unreconciled items older than 30 days across every account with restricted cash agreed to restricted fund balances monthly.
Nonprofits compliance notes
IRS Form 990 data (US)
Tax-exempt organizations file Form 990, 990-EZ or 990-N depending on gross receipts and assets, by the 15th day of the fifth month after year-end. We prepare the underlying data: revenue by source, functional expenses by program, management and fundraising, net assets by restriction, and officer compensation schedules. Your CPA reviews and files the return; we provide preparation support only.
Restricted versus unrestricted funds
Under ASU 2016-14, net assets are presented with donor restrictions and without donor restrictions, and restrictions are released when the purpose or time condition is met. We track each restricted gift and grant from receipt to release in the ledger, so the statement of activities and the notes show releases with support rather than estimates.
Charity Commission (England and Wales)
Registered charities with income over £25,000 must file an annual return and accounts within 10 months of the financial year-end, and those above the audit threshold need an independent examination or audit. We keep the books to Charities SORP categories where the charity reports on an accruals basis, and assemble the figures for the trustees' annual report. The trustees and their examiner or auditor remain responsible for the filing.
ACNC (Australia)
Charities registered with the Australian Charities and Not-for-profits Commission lodge an Annual Information Statement within six months of year-end, with financial reporting obligations that rise with size. We prepare the financial figures and, where the charity is registered for GST, the BAS workpapers for your TPB-registered BAS agent or accountant. We do not lodge the statement or the BAS.
Nonprofits software we work in
- QuickBooks Online
- Xero
- Sage Intacct
- Bill.com
- Stripe
- PayPal
- Gusto
- Bloomerang
- DonorPerfect
- Neon CRM
- All 50 platforms
More for nonprofits, charities and associations
Other services for nonprofits
Bank reconciliation in other industries
Frequently asked questions
How do you reconcile a Stripe payout that mixes ticket sales and donations?
The payout report lists each charge with its product or campaign, so we split the deposit into ticket revenue, donations and fees and code each to the right fund and program. Donations are recorded gross with the fee as fundraising expense; ticket income is recorded to the program. The net matches the bank line exactly.
Do you reconcile our endowment or investment accounts?
Yes, investment accounts are reconciled monthly to the custodian statement, with realized and unrealized gains, income and fees posted to the correct fund. Endowment balances are tracked by original gift and accumulated earnings where your spending policy requires it. Your investment adviser and auditor confirm valuation; we keep the ledger tied to the statement.
What about cash from events and collections?
Cash and check counts from events, services or collection boxes are recorded from the count sheet signed by two people, deposited intact and matched to the bank deposit. Differences between the count sheet and the deposit are reported the same week. This is the control most auditors ask about first, so we keep the count sheets with the reconciliation.
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