Analyzing your nonprofit’s financial health is essential for the sustainability of your organization. If your organization uses a nonprofit accountant that regularly maintains transaction activity throughout the year, you will be prepared for closing the books and have a smoother audit. Here are four best practices to be prepared for your year-end reporting. Continue Reading
Managing Money With Mission
Category Archives: Nonprofit Accounting Practices
Outsourcing Your Accounting Services
Nonprofit organizations, and accountants, understand the need to count every penny. Staying on track with your strategic plan and achieving your goals is based largely on how your organization manages its money. Is your accountant on staff as knowledgeable as you have come to expect? Do they have the benefit of industry perspective and continually… Continue Reading
Your Nonprofit and Reserve Funds
Since it is perfectly acceptable for a nonprofit to make a profit throughout the course of a year, the question often asked is, “how much should be left in reserves?” The answer is tricky. Having excess reserves can limit your donors’ willingness to give and having too little could cause your nonprofit to struggle operationally… Continue Reading
When Your Nonprofit Makes a Profit
A 501(c)(3) organization CAN make a profit while being registered as a nonprofit. Even though an organization’s nonprofit status may preclude them from paying income taxes on profits earned, there are possible tax liabilities with earned revenue that need to be considered. Continue Reading
Nonprofits Shouldn’t Overlook their Accountants
Most, if not all, nonprofits need to work within a tight budget. Programs, salaries, capital projects, building maintenance – none of these line-items are free. Many executive directors and board members are trying to find ways to decrease expenses, but tightening your organization’s purse strings in the areas of accounting assistance and bookkeeping may end… Continue Reading