Need help with Nonprofit Accounting?

Small nonprofits often have treasurers or bookkeepers with little (if any) accounting experience. As the person responsible for nonprofit accounting, you have to consider the public, the donors, the employees, and the legal ramifications. If you do not know where to start or are worried about getting in trouble with the IRS, fear not!

With this unique, easy-to-read, detailed guide you will learn how to look after the whole financial well-being of your nonprofit organization. This isn’t some nonprofit accounting for dummies. Written specifically for nonaccountants, this book will empower YOU to take control of your charity’s finances!

This book will show you how to:

• Activate safety measures to keep the cash and the assets safe while preventing theft and errors

• Understand basic accounting standards and what makes nonprofit accounting different

• Establish best practices for nonprofit accounting

• Use a chart of accounts to monitor the flow of money

• Maximize efficiency with accounting software such as Quickbooks

• Follow the necessary steps to start a nonprofit

• Receive, record, and acknowledge different types of donations and other contributions

• Keep track of program revenue and activities

• Detail fundraising events and nonprofit marketing expenses

• Track grants and run donor reports

• Record restricted revenue and costs

• Keep track of your nonprofit general fund and the related transactions

• Understand financial reports, including the Statement of Financial Position (balance sheet) and the Statement of Activities (Profit & Loss)

• Complete W-2s, 1099s, payroll, and reimbursements

• Budget with the priorities of your nonprofit in mind

• Use the included monthly and yearly bookkeeping checklists

• Understand unrelated business income and how it could affect your nonprofit

• Maintain your tax-exempt status by filing the proper nonprofit tax returns

• Complete the Form 990 N, Form 990 EZ, and Form 990-Schedule A and Schedule B, with line by line instructions.

  This book provides real-life problems and solutions that nonprofits often face with their bookkeeping. Additional benefits include access to free online resources for your convenience. This book functions well not only as an introduction for beginners but also as a handy reference for the experienced bookkeeper.

  Whether you are tracking memberships for your social club or association or are involved with community grants, recording the activities and costs properly is crucial. The purpose of having solid accounting financial statements is to give your board the important information they need to achieve the nonprofit's purpose.

  You will rest easier knowing you are keeping donors happy, paying employees properly, tracking expenses for your programs, activities, and grants, and giving management the financial reports they need to run the organization.

  Lisa London is a CPA and top-selling author with decades of experience who has helped organizations reduce their accounting time dramatically. Her series The Accountant Beside You is written for organizations to understand the basics of nonprofit accounting and bookkeeping with step-by-step instructions, loads of illustrations, and no confusing jargon. With this book, you are never alone--you have The Accountant Beside You.

Using QuickBooks? Bundle to save $5 when you include QuickBooks Online for Nonprofits & Churches or QuickBooks for Nonprofits & Churches. Check the drop-down arrows under Bundle for options.

Available in Paperback and e-Book versions.

ISBN 9781945561153

Pages 234

Copyright 2020 Deep River Press, Inc.

Author Lisa London, CPA

ISNI 0000 0004 5059 7909

You can find all our money-saving bundles for nonprofits by clicking here! 

Topics by Chapter

1 . Proper Procedures & Internal Accounting Controls

The Need for Strong Internal Controls

Governing Body's Responsibility

Separation of Duties

Basic Controls for Receiving Cash & Donations

Cash Out And Controls for Paying Bills

Summary

2 . What is Special About Nonprofit Accounting?

Nonprofit Accounting Terminology

Accounting

Cash vs. Accrual Accounting Methods

Chart of Accounts

Basic Bookkeeping

Nonprofit Reporting Differences

Summary

3 . How Do I Select an Accounting System?

Time Vs. Money

Spreadsheets

Off-The-Shelf Accounting Software

Online Nonprofit-Specific Accounting Packages

Summary

4 . Administrative Issues

Basic Steps to Start a New Nonprofit Organization

Organization Bylaws

Record Retention

Summary

5 . Donations, Part I: Receiving and Recording

Internal Controls and Written Policies

Counting Money Received In Person

Making the Deposits

Recording Donors’ Contributions

Recording Credit Card Donations

Summary

6 . Donations, Part II: Acknowledgement

Cash Contributions

Stock Donations

Noncash Contributions

Donated Labor/Services

Impact of the TCJA (2017 Tax Law)

Quid Pro Quo Donations

Gifts of Autos, Boats, and Airplanes

When You Do Not Need Disclosure Statements

Summary

7 . Donations, Part III: Other Topics

Gifts to Specific Individuals

Discounts As Donations

Checks Written to Another Charity

Summary

8. Rules For Helping Local Families And Individuals

Requirements

Types of Benevolence Funds

Disbursement Procedures

Written Benevolence Policy Example

Summary

9. Paying the Bills

Terminology

Approving & Paying the Bills

Scams

Insurance & Contracts

Entering Data

Allocation of Expenses

Bills Drafted Out of the Bank Account

Credit Card Payments

Petty Cash Replenishment

Summary

10. Reimbursement Policies and Procedures

Setting Up a Reimbursement Policy

Example of a Reimbursement Policy Resolution

Employee Business Expenses To Include

Examples of Proper Reimbursement Items

Examples of Improper Reimbursement Items

Standard Mileage Rates

Reimbursing the Expense

Volunteer Mileage

Timing

Advance Payments

Ticketless Airline Expenses

Ramifications of Not Following the Policy

Inability To Reimburse a Valid Expense

Summary

11 . Payroll, Part I: Basic Steps

Terminology

Forms & Publications

Setting Up the Payroll

Wages Vs. Salaries

Determining the Pay Period

Employee Forms

Establish Your Payroll Records

Summary

12 . Payroll, Part II: Calculating & Filing

Wage Bracket Method

Percentage Method

State Tax Withholding

FICA—Social Security & Medicare Taxes

The Employee's Payroll Check

Posting the Payroll Expense

Other Taxes

Payroll Tax Deposits

Payroll Tax Filings With Form

Year-End Filings

Ordering IRS Forms

Summary

13. Budgeting For Nonprofit Organizations

The Budget Process

Example Budget Spreadsheet

Monthly Budgeting

Forecasts

Cash Flow Analysis

Summary

14 . Month-End Financial Requirements

Monthly Processes For Complete Financials

Bank Reconciliation

Investment Account Reconciliations

Generate Reports

Summary

15 . Year-End

Forms W- 2 (Wages) and W- 3 (Taxes)

Form 940 (Employer's Annual Federal Tax Return)

Form 1099 (Independent Contractors)

Form 1096 (Transmittal of U.S. Information Returns)

Year-End Donor Acknowledgements

State Filings

Other IRS Requirements

Audit Needs

Summary

Unrelated Business Income Taxes (UBIT)

What is Unrelated Business Income for a Nonprofit?

“Trade or Business”

“Regularly Conducted”

“Not Substantially Related” To The Mission

Excluded Trade/Business Activities

Examples

Miscellaneous Excluded Revenues

990-T (Exempt Organization Business Income Tax)

Summary

Form 990 (Annual Filings for Exempt Organizations)

Types of 990s (Nonprofit Tax Returns)

IRS Summary of Forms to File

Completing Form 990-N (e-Postcard)

Completing Form 990-EZ (Short Form Return)

Schedule A (Public Charity Status & Public Support)

Schedule B (Schedule of Contributors)

Summary

Appendix

Month-End Check List

Simplified UCOA (Unified Chart of Accounts)