How it runs for nonprofits, charities and associations
Each step is completed by the dedicated accountant and checked by the team lead under Two-Tier Review. The executive director and treasurer receive statements by fund within five business days, with a note that explains the movements in plain language.
What is month-end close outsourcing?
Month-end close outsourcing means an external accounting team performs the steps that turn a month of transactions into finished financial statements: reconciling every account, posting accruals, prepaids and depreciation, checking cut-off, reviewing and locking the period. You keep your software and your accountant. The provider runs the checklist on an agreed calendar and hands you reviewed statements.
What we handle for nonprofits, charities and associations
- Allocate shared salaries and overhead across programs on the documented basis
- Record releases from restriction as grant and gift conditions are met
- Accrue grant revenue earned under reimbursement awards not yet claimed
- Roll forward every fund and restricted balance with support
- Sign off each CloseTrack step with maker-checker review before release
The KPI that matters here
Close signed off within 5 business days of month-end with every fund rolled forward and no negative restricted balance.
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 a release from restriction and when do you record it?
A release moves net assets from with donor restrictions to without donor restrictions when the purpose has been fulfilled or the time has passed. We record it at each close for the amount of restricted spending in the month, supported by the coded expenses. This keeps the statement of activities current and gives the auditor a monthly release schedule.
How do you accrue grant revenue for reimbursement grants?
Under a cost-reimbursement award, revenue is earned as allowable costs are incurred, so at close we accrue revenue equal to coded grant spending not yet claimed and record a grant receivable. When the claim is submitted and paid, the receivable clears. Advance-funded grants are treated the opposite way, as deferred revenue or a refundable advance, as your auditor directs.
How do you allocate salaries across programs at close?
From timesheets or the approved position allocation, we post a journal that moves each person's salary, taxes and benefits to the programs and functional categories they served. The allocation basis is documented and revisited annually with your auditor. Grant-charged salary must match the effort records, so the same journal supports the grant reports.
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