Nonprofit Accounting

Let your mission be your focus. Let the accounting be mine.

Whether you're starting a nonprofit, catching up on the books, or looking for dependable monthly support, I help organize your accounting so you can understand the numbers and keep your financial records on track.

Accounting Software Setup, cleanup, and ongoing accounting with direct support from an Arizona CPA.

Request a consultation
Volunteers placing groceries into a food donation box

Start where your organization needs help.

New nonprofit setup

Accounting setup for new nonprofits

You don't need a large finance department to start with organized books. I help establish an accounting setup that fits your organization's activities, funding, and reporting needs, with practical processes for the people who will use it.

  • Accounting Software Setup with an appropriate nonprofit chart of accounts.
  • Establish tracking for programs, funding sources, and donor restrictions.
  • Document opening balances and properly supported startup transactions.
  • Create workflows for donations, expenses, reimbursements, and document storage.
  • Establish a month-end checklist and management or board reporting templates.
  • Help organize financial deadlines and responsibilities with your tax professional.

This is accounting and financial-process setup, not legal formation or preparation of an application for tax-exempt status.

Cleanup & catch-up

Nonprofit cleanup and catch-up accounting

When the books have fallen behind or the numbers don't look right, I help identify what needs attention and work through the cleanup. The goal is a more reliable starting point, clearer records, and a process you can maintain going forward.

  • Catch up missing periods and reconcile bank and credit card accounts.
  • Investigate duplicate entries, misclassifications, and unexplained balances.
  • Reconcile donation-platform activity and deposits without double-counting receipts.
  • Organize available grant records and donor-restriction documentation.
  • Correct program and functional expense coding where records support it.
  • Deliver updated reports and a clear list of remaining questions or missing records.

Cleanup is scoped after an initial assessment, with a fixed project fee agreed before work begins.

Ongoing support

Ongoing nonprofit bookkeeping and financial oversight

As activity grows, regular accounting support helps keep the records current and gives leadership a clearer picture of the organization. I can handle the recurring work or provide controller-level support alongside your bookkeeper or volunteer treasurer.

  • Bookkeeping, reconciliations, and month-end close.
  • Monthly financial statements appropriate to the agreed reporting basis.
  • Program and grant schedules, including donor-restriction tracking where applicable.
  • Documented allocations of shared expenses.
  • Budget-to-actual reporting and cash flow planning.
  • Year-end schedules and coordination with your outside tax preparer or auditor.

Your monthly retainer reflects the work and reporting your organization actually needs.

Clear scope. Agreed pricing.

Nonprofit accounting setup and cleanup are quoted as fixed-fee projects. Ongoing bookkeeping and financial oversight are provided through a defined monthly retainer tailored to your organization.

Your fee reflects your transaction volume, the condition of your records, fund and grant tracking, and reporting needs for your board, funders, and management. We agree on the scope and price before work begins, so you can plan confidently within your nonprofit’s budget.

Build the financial foundation before the first year-end.

A new nonprofit's financial responsibilities begin before its first annual filing. Recording early transactions, saving supporting documents, and capturing donor instructions helps establish a record of how funds were received and used.

A pending IRS exemption application does not automatically postpone an annual filing that is otherwise due. Even organizations that file a short annual notice, or qualify for a filing exception, still need appropriate financial records.

Starting early gives your bookkeeper, board, and tax professional a shared foundation. It also reduces the need to reconstruct a year's activity when a filing deadline or funding request arrives.

IRS recordkeeping guidance · IRS guidance on pending applications

More than tracking money in and money out.

Donor restrictions

Some gifts can support general operations; others are limited to a particular purpose or period. I help track those instructions and the related activity so leadership can distinguish restricted resources from other funding.

Grant and contribution accounting

A grant agreement can affect how funding is tracked and when revenue is recognized. I help organize the accounting around the agreement, rather than treating every deposit as immediately available revenue.

Program, administration, and fundraising costs

Expenses need a useful description of both what was purchased and the activity it supported. I help organize costs across program services, management and general, and fundraising, using documented methods for shared expenses.

Cash available for operations

A bank balance does not tell the whole story. Reports and forecasts can help leadership understand upcoming bills, expected receipts, and limits on the use of funds.

Financial information your board can use.

The reporting package is built around your organization's needs and the agreed scope. It may include a statement of financial position showing assets, liabilities, and net assets; a statement of activities showing revenue, expenses, and changes in net assets; a functional expense summary; budget comparisons; and supporting grant or cash flow schedules.

My role is to help make the information understandable, highlight questions that need attention, and support better-informed conversations with your board and outside advisers.

Client management and the board retain oversight and payment-approval responsibilities. Requests involving complex federal-award compliance, Single Audits, endowments, or private-foundation administration need a separate assessment of fit and scope.

Frequently asked questions

Can you help before our nonprofit receives its IRS determination letter?

Yes. Accounting setup can begin while your application is pending. Early transactions and supporting records still need to be organized, and filing obligations may arise before IRS approval. I handle the accounting setup; your legal or tax adviser handles exemption applications and related advice.

IRS guidance on pending applications · IRS guidance on tax exemption

Can you help when the books are months or years behind?

Yes. I start by reviewing the available records, the periods involved, and any urgent reporting needs. Then I propose a defined cleanup scope. Missing documentation and questions affecting prior-year filings are identified rather than silently worked around. Any filing changes are coordinated with your tax professional.

Do you prepare Form 990 or apply for 501(c)(3) status?

No. I do not prepare or file tax returns or exemption applications. I help keep your books organized and prepare the financial reports and supporting schedules your tax professional needs. Clean, well documented books can make tax preparation at year end smoother, reduce questions from your tax professional, and help lower the time and potential cost of preparing your nonprofit’s return.

Do nonprofits have to use accrual accounting?

Not every nonprofit has the same reporting requirements. The appropriate accounting basis depends on your activities and obligations to funders, regulators, and other financial-statement users. I help assess the setup with your advisers rather than assume that one approach fits every organization.

IRS guidance on accounting methods

Can you work with our current bookkeeper or volunteer treasurer?

Yes. I can complement the work already being done through cleanup support, a more consistent close, reporting, or controller oversight. The scope clearly defines who handles each responsibility.

Does nonprofit status mean we have no filing or tax obligations?

No. State nonprofit status and federal tax-exempt status are different. Many exempt organizations have annual IRS reporting obligations, and state requirements or taxes may also apply. Arizona does not provide a blanket transaction privilege tax exemption for nonprofits. I provide accounting support and coordinate with your tax professional on the records needed for applicable requirements.

IRS guidance on tax exemption · IRS annual filing guidance · Arizona nonprofit tax guidance

Do you provide nonprofit audits?

No. I do not provide audits, reviews, compilations, or other assurance services. When your organization has an outside auditor, I can help prepare accounting schedules and organize records within an agreed scope.

Let's talk about where your nonprofit needs support.

Starting something new, sorting out older records, or looking for dependable monthly help? Tell me a little about your organization and what you need.

Services are tailored to each engagement. Accounting support does not guarantee compliance or funding approval. Exemption applications and legal services are not provided.

Request a consultation