How it runs for nonprofits, charities and associations
Restricted balances are rolled forward monthly so releases are documented as they happen. The books close within five business days, reviewed by a team lead, with a note for the executive director and the treasurer.
What is outsourced bookkeeping?
Outsourced bookkeeping means a remote accounting team records, categorizes and reconciles your business transactions instead of an employee doing it in-house. You keep ownership of the accounting file and the bank relationship. The provider works inside your software on a fixed schedule, so the books are ready for reporting, tax and lending whenever you need them.
What we handle for nonprofits, charities and associations
- Tag every transaction to a fund, program and functional expense category at posting
- Record gifts gross with platform fees as fundraising expense
- Post grant expenses against loaded award budgets by line item
- Book pledges when unconditional and in-kind gifts at documented fair value
- Roll forward restricted net assets monthly with releases supported
The KPI that matters here
Books closed within 5 business days of month-end with zero untagged transactions and restricted balances rolled forward.
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
Frequently asked questions
What is the difference between a fund, a class and a program in the books?
A fund is a pool of money with its own restriction, such as a specific grant or the general fund. A program is an activity, such as a shelter or a tutoring service, used for functional reporting. In QuickBooks Online we usually use classes for programs and functional categories and a customer or project for each grant; in Xero, two tracking categories do the same job.
How do you record in-kind donations?
Donated goods and professional services that meet the recognition rules are recorded as contribution revenue and an equal expense or asset at fair value, with the supporting valuation attached. Volunteer time that does not meet the rules is tracked outside the ledger for the annual report. Your auditor confirms the treatment; we keep the support organized.
Can you handle a fiscal year that is not the calendar year?
Yes, many nonprofits close on 30 June or 30 September, and grant periods rarely match either. We close each month on your fiscal calendar and track each grant on its own award period, so a grant report due mid-year and the fiscal year-end schedules both come from the same reconciled ledger.
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