Nonprofit Bookkeeping and Accounting for Dummies

by Farris, Sharon

• ISBN13: 9780470432365
• ISBN10: 0470432365
• Edition: 1st
• Format: Paperback
• Copyright: 2009-05-04
• Publisher: For Dummies

Summary

Your hands-on guide to keeping great records and keeping your nonprofit running smoothlyNeed to get your nonprofit books in order? This practical guide has everything you need to know to operate your nonprofit according to generally accepted accounting principles (GAAP) - from documenting transactions and budgeting to filing taxes, preparing financial statements, and much more. You'll see how to stay organized, keep records, and be prepared for an audit.Begin with the basics - understand common financial terms, choose your accounting methods, and work with financial statementsBalance your nonprofit books - set up a chart of accounts, record transactions, plan your budget, and balance your cash flowGet the 4-1-1 on federal grants - find grants and apply for them, track and account for federal dollars, and prepare for a grant auditStay in good standing with Uncle Sam - set up payroll accounts for employees, calculate taxes and deductions, and complete tax formsClose out your books - prepare the necessary financial statements, know which accounts to close, and prepare for the next accounting cycleKnow what to do if you get audited - form an internal audit committee, follow IRS rules of engagement, and keep an immaculate paper trailOpen the book and find:The difference between bookkeeping and accountingHow to maintain a manual or computer record-keeping systemTen vital things to know when keeping the booksDo's and don'ts of managing federal grant moneyHow to prepare for an audit of your financial statementsIRS Form 990 good practicesThe most common errors found during nonprofit auditsHow to figure out employee payroll deductions and taxes

Author Biography

Sharon Farris has been involved in the grants industry for more than ten years. She is the president of Farris Accounting & Consulting Training Services (FACT$) as well as the former president of the American Association of Grant Professionals (AAGP) Montgomery.

Table of Contents

Introduction

Accounting and Bookkeeping Nonprofit Style.

The Nuts and Bolts of Nonprofi t Bookkeeping and Accounting

Starting with Basic Bookkeeping and Accounting

Introducing Financial Statements

Keeping Good Records: Using a Manual System or Computer System

Balancing Your Nonprofit Books.

Setting up the Chart of Accounts for Nonprofits

Recording Transactions and Journal Entries

Balancing the Checkbook: Donations and Expenses

Balancing Cash Flow: Creating an Operating Budget

Staying in Nonprofi t Compliance

Accounting for Nonprofit Situations.

Introducing Federal Grants

Tracking and Accounting for Federal Dollars

Getting Ready for the Grant Audit

Accounting for Payroll and Payroll Taxes

Doing the Accounting for Tax Form 990

Wrapping Up the Books.

Analyzing the Statement of Activities

Reporting Financial Condition on a Statement of Financial Position

Eyeing the Cash Flow Statement

Organizing the Statement of Functional Expense

Closing the Nonprofi t Books

Preparing for an Accounting Audit

The Part of Tens.

Ten Important Things to Know When Keeping Nonprofit Books

Ten Tips to Keep Your Nonprofit Viable

Index

Table of Contents provided by Publisher. All Rights Reserved.