Bookkeeping Services for Nonprofits

Bookkeeping for Non-profit Organization

Non-profit organizations function by the funds raised finances and as such they do not have the privilege of spend money lavishly on in-house bookkeepers whose skills are not even required significantly for the whole month let alone a year. They have to be very careful with the spending and expenses as all the finance accumulated are through funds and grants. Thus hiring a bookkeeper on contract basis is wise decision than an in-house bookkeeper whose need arises when they have to prepare proper and authentic records for existing and prospective donors. Hence hiring a freelance or bookkeeping agency having experienced bookkeepers is a must.

Accounting for Non-profits

Accountspro is one such trustworthy agency. We believe in providing such high quality of services to our clients that their business reaches new heights without worrying about the tedious but all the more important financial tasks. Our main aim is to accord users with experienced bookkeepers who can understand the need of the clients and offer tailor-made services revolving around those requirements.

Why outsource Nonprofits Bookkeeping?

Outsourcing your bookkeeping is not imperative but it is definitely more cost effective than hiring a full time accountant. Some of the reasons that effectively illustrate the advantage of outsourcing bookkeepers are as follows:

Professional Expertise

Non-profit organization requires timely and authentic financial reports as all the funds as well as grants are acquired through these reports itself. Many investors demand monthly or quarterly financial files depicting all the transactions and where the money will be used. On the other hand some investors request for financial reports at the year end. At the same time if you get benefitted by government funding then you require to maintain yearly external audit. With outsourced bookkeepers you do not need to worry about maintaining these reports as they themselves will manage all the require information. Efficient bookkeepers will ensure timely and complete maintenance of financial reports as per the requirement mentioned by the client.

Hire as per the Requirement
With non-profit organization you do not require full time bookkeepers as there is not much need for it. So outsourcing bookkeeping and acquiring a bookkeeper on temporary basis is more beneficial as it saves up much of the business resources. Over head charges such as payment for days when there is no work, space for the bookkeeper, administrative resources, employee perks and benefits etc gets minimized to a large extent.

Effective & Efficient
Bookkeeping, as a single job process, works quite effectively on economy of sale principle, when applied through outsource. Outsourced bookkeepers have more resources as compared to in-house bookkeepers. They have more than one client which helps as they mostly have pre made formats like templates for cost allocation, journal entries etc. This not only eases the work load, as only data has to be put in, but also speeds up the process of recording.
Thus it is better to outsource your finances to a bookkeeper, rather than hiring an in-house one as the new bookkeeper will take time in learning the whole process along with creating fresh templates as well as incurring more over head charges.

Non Profit Business Types

Sno	Non -Profit Types
1	Churches
2	Youth organizations
3	Corporations Organized under Act of Congress (including Federal Credit Unions)
4	Title Holding Corporation For Exempt Organization
5	Religious, Educational, Charitable, Scientific, Literary, Testing for Public Safety, to Foster National or International Amateur Sports Competition, or Prevention of Cruelty to Children or Animals Organizations
6	Civic Leagues, Social Welfare Organizations, and Local Associations of Employees
7	Labor, Agricultural, and Horticultural Organizations
8	Business Leagues, Chambers of Commerce, Real Estate Boards, etc.
9	Social and Recreational Clubs
10	Fraternal Beneficiary Societies and Associations
11	Voluntary Employees Beneficiary Associations
12	Domestic Fraternal Societies and Associations
13	Teachers' Retirement Fund Associations
14	Benevolent Life Insurance Associations, Mutual Ditch or Irrigation Companies, Mutual or Cooperative Telephone Companies, etc.
15	Cemetery Companies
16	State-Chartered Credit Unions, Mutual Reserve Funds
17	Mutual Insurance Companies or Associations
18	Cooperative Organizations to Finance Crop Operations
19	Supplemental Unemployment Benefit Trusts
20	Employee Funded Pension Trust (created before June 25, 1959)
21	Post or Organization of Past or Present Members of the Armed Forces
22	Black Lung Benefit Trusts
23	Withdrawal Liability Payment Fund
24	Veterans' Organization
25	Title Holding Corporations or Trusts with Multiple Parent Corporations
26	State-Sponsored Organization Providing Health Coverage for High-Risk Individuals
27	State-Sponsored Workers' Compensation Reinsurance Organization
28	National Railroad Retirement Investment Trust
29	CO-OP health insurance issuers
30	Political Organizations
31	Corporations Organized Under Act of Congress (including Federal Credit Unions)
32	Title Holding Corporations for Exempt Organization
33	Teachers' Retirement Fund Associations
34	Benevolent Life Insurance Associations, Mutual Ditch or Irrigation Companies, Mutual or Cooperative Telephone Companies, or Like Organizations (if 85 percent or more of the organization's income consists of amounts collected from members for the sole purpose of meeting losses and expenses)
35	Cemetery Companies (owned and operated exclusively for the benefit of their members or which are not operated for profit)
36	State Chartered Credit Unions, Mutual Reserve Funds
37	Mutual Insurance Companies or Associations
38	Cooperative Organizations to Finance Crop Operations
39	Employee Funded Pension Trusts (created before June 25, 1959)
40	Black Lung Benefit Trusts
41	Withdrawal Liability Payment Funds
42	Title Holding Corporations or Trusts with Multiple Parents
43	State-Sponsored High-Risk Health Coverage Organizations
44	State-Sponsored Worker's Compensation Reinsurance Organizations
45	National Railroad Retirement Investment Trust (45 U.S.C. 231n(j)
46	Qualified Nonprofit Health Insurance Issuers
47	Religious and Apostolic Associations
48	Cooperative Hospital Service Organizations
49	Cooperative Service Organizations of Operating Educational Organizations
50	Child Care Organizations
51	Farmers' Cooperative Associations

Types of Records Non Profit Should Maintain

• Cash vs. Accrual
• Reconciling Accounts
• Petty Cash
• Accounts Receivable
• Fixed Assets
• Inventory
• Accounts Payable
• Line of Credit
• Payroll
• Should I use accounting software?
• Expense Allocations
• Chart of Accounts
• Accounting for Capital Leases
• Sample Amortization Schedule