Category: Bookkeeping

As an alternative to an independent audit, auditors can provide either a financial statement “review” or a “compilation.” Neither a review nor a compilation is a substitute for an audit. Here is some estimation of the order of magnitude cost of an audit based on the nonprofit organization’s financial size. The cost of a nonprofit audit…

Rather, the outcome of an audit is to provide, in the auditor’s judgement, whether or not the organization’s financial statements are fairly presented in all material aspects in accordance with GAAP. Receipt of an unmodified audit opinion, or a “clean bill of health from an auditor,” lets the financial statement user know the organization is…

Involving program directors and the finance team creates a presentation that demonstrates a strong understanding of the organization’s needs and capabilities. Board members who have a clear understanding of financial compliance are much better equipped to maintain the organization’s integrity and follow legal and regulatory standards. This may include tax regulations, reporting obligations, and accounting…

A retainer fee is an upfront sum paid to confirm the services of a professional, such as a lawyer. This fee ensures that the professional is available to work on the client’s case or project and is often used to cover initial costs or guarantee ongoing availability. It acts as a commitment from the client,…

After all, knowing whether the next month will see a financial feast or famine can help you make better decisions about spending, saving, and investing in your business today. ProjectManager is online project and portfolio management software that connects teams whether they’re in the office or out in the field. They can share files, comment…

These statements are pulled from the chart of accounts, which maintains a running record of the various ledgers kept at your organization. If you’re like most nonprofit leaders, you didn’t get to the top of your organization by burying your nose in nonprofit financial statements. If the net change in cash is positive, then that means…

However, many modern ATMs allow you to directly insert the check without an envelope. Open a savings account or Budgeting for Nonprofits open a Certificate of Deposit (see interest rates) and start saving your money. Give access to accountant or clients with a role based user and approval process. Send your checks as a one-time…

Closing entries are a fundamental part of accounting, essential for resetting temporary accounts and ensuring accurate financial records for the next period. In this guide, we delve into what closing entries are, including examples, the process of journalizing and posting them, and their significance in financial close management. In the next accounting period, these temporary…