Nonprofit Bookkeeping Services

Yes, we can. We configure our nonprofit-specific bookkeeping and accounting systems to track all funding and expenses. One of the primary aims is to generate accurate and detailed reports for donors, leadership and other invested parties. For example, you can track revenue by source, purpose, and reporting cycle, etc.

You can also track expenses by utilities, project, and transport, etc.

Your system can also be tailored to include templates for the different types of report applicable to nonprofits, including industry-specific (healthcare) nonprofit reporting requirements. For example, quarterly donor reports and multi-year grant tracking reports.

Data that comes from a single source of truth, clear audit trails, and multiple levels of quality control ensure the integrity and accuracy of reports. Dimensional reporting allows you to delve into specific metrics (revenue per donor), which you can access from your dashboard.

It’s actually pretty easy, provided you know the trick. It lies in neat and orderly processes and clear, robust rules. This is a strong argument for thorough financial processes and an almost obsessive eye for detail. We help you along by ensuring your systems are capable of using tags in reporting.

This is important because if you want to handle grants and restrictions without side files you must tag spend by grant, funder, and program. It’s how can ensure releases and allocations follow the clear, robust rules mentioned above.

Automation plays a key role in the process, especially when it comes to restricted vs. unrestricted flows, and matching statements to agreements.

One last thing, you must keep budgets next to live activity because it lets leaders see burn and remaining balances in the same view.

Metrics provide real-time insight into your nonprofit’s performance, so you can make informed decisions to improve its financial health. There are many metrics that can be defined as “key”. We’ve earmarked five as especially important for nonprofits.

• Revenue reliability: Do you have reliable revenue sources; as in you can count on monthly payments of the same amount?
• Liquidity: Cash on hand divided by average monthly expenses. It’s pretty important, especially from a cash flow point of view.
• Fundraising expenses per event: Crucial because it shows you whether fundraising events actually cost more than they raise.
• Liability composition: Keeps track of all your organization’s debt, including how it’s structured (payment terms).
• Cash flow from operations: Basically, can you keep your doors open? Positive cash flow means you can cover unrestricted operations and programming costs.

Monitoring these metrics helps you maintain alignment between financial performance and mission impact.

Yes, you can. In fact, many nonprofit organizations outsource internal controls. The reason is simple: It makes financial sense. For instance, it gives nonprofits access to expert services and financial oversight that they wouldn’t ordinarily have. Importantly, all this access is considerably more affordable and cost-effective than maintaining an in-house finance team.

What sort of internal controls are we talking about?

• Approval structures
• Segregation of duties

Outsourcing has three primary benefits:

• Risk reduction: Several pairs of professional eyes are involved in your nonprofit’s financial management. This type of quality control and insight reduce all types of risks, including fraud.
• Clear accountability: Roles are clearly defined and processes neatly laid out, so no one can claim ignorance when they fail to fill their responsibilities.
• Managed funder and auditor expectations: Detailed reports and transactions logged with evidence provide sufficient information to answer auditors’ questions and paint a clear picture of your organization’s financial health that funders can easily understand.

Yes, we do. We work with several nonprofit-specific software solutions, including Sage Intacct, DonorPerfect, and Xero. We start the integration process by looking into your accounting needs, so we can develop a comprehensive system that includes the most appropriate software and ticks all your boxes. For example, Sage Intacct might provide the best ERP platform, but DonorPerfect might have the best grant management tools.

Our job is to develop a compact system with integrations that match your priorities and don’t splinter into a whole tree of tools. In the end, your tailored system will eliminate duplicate data entries, keep general ledgers balanced, and provide financial clarity for stakeholders. We achieve all this while still maintaining continuous audit readiness.