How it runs for nonprofits, charities and associations
Everything happens inside your QuickBooks Online or Xero file with the auditor's expectations in mind.
What are outsourced controller services?
Outsourced controller services provide the review layer that sits between bookkeeping and the owner: a senior accountant who checks the close, owns the accounting policies, tests the controls around cash and spending, and explains the financial statements. The controller does not do daily posting. They make sure what was posted is right and documented before anyone relies on it.
What we handle for nonprofits, charities and associations
- Review and sign off every month-end close under Two-Tier Review
- Set and document policy for restrictions, cost allocation and grant revenue recognition
- Review grant claims for allowability and budget compliance before submission
- Lead audit and Form 990 preparation with the auditor and CPA
- Model cash through grant payment cycles and present to the finance committee
The KPI that matters here
Controller review complete and finance committee report delivered within 10 business days of month-end with audit schedules ready within 30 days of year-end.
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
Controller services in other industries
Frequently asked questions
When does a nonprofit need controller review rather than just bookkeeping?
Usually when the organization has several restricted grants, is approaching an audit or single audit, or when the executive director is making financial decisions without a finance professional to check them. Controller review adds policy, sign-off and interpretation above the dedicated accountant. Organizations between roughly $1 million and $15 million in budget usually need controller hours rather than a controller salary.
Can the controller prepare us for a single audit?
Yes, the controller documents the internal controls, allocation basis and allowability procedures, prepares the schedule of expenditures of federal awards from the grant-tagged ledger and assembles the audit request list. The auditor performs the single audit and issues the reports. We provide preparation and bookkeeping support, not the audit itself.
Does the controller present to our board or finance committee?
Yes, the controller can join the finance committee meeting to walk through the fund statements, reserve position, grant burn and cash outlook and to answer questions in plain language. The treasurer remains the board's financial officer; the controller supports the treasurer with reviewed numbers and a clear narrative.
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