Keeping in compliance with Uniform Guidance

If your not-for-profit receives significant federal funds, it may be subject to the Office of Management and Budget’s Administrative Requirements, Cost Principles, and Audit Requirements (Uniform Guidance). And if your nonprofit spends $750,000 or more in federal awards in a fiscal year, it probably faces a single audit — an annual financial statement audit and […]

A refresher on nonprofit endowment management

If your not-for-profit has an endowment, you probably know it’s a major responsibility. Endowment investments generally need to be managed by a financial expert, and your organization must adhere to certain regulations, particularly when it comes to spending. As a refresher — or primer for new employees or board members — here are the basics of […]

Pick the right accounting method for your business

Timely, accurate financial information is essential to running a successful business. There are a number of accounting methods you can use to record and track your business’s financial performance. Here’s an overview of cash, tax, and accrual basis accounting to help you choose a method that’s appropriate for your situation. Cash basis Often startups and […]

Are your Accounting and Development departments like oil and water?

When Accounting and Development teams don’t work well together, the situation can lead to more than employee hostility and conflict. It can affect the not-for-profit’s financial statements and lead to the forfeiture of grant funds. To ensure the staffers in your Accounting and Development departments communicate fluidly, you may need to revise certain procedures and […]

6 Common accounting pitfalls for startups to avoid

Accounting is a critical element when launching a successful business venture. Unfortunately, it’s also an area where startups tend to make mistakes. Here are some common (and avoidable) errors that entrepreneurs should watch out for. Failing to track expenses Starting a new business is exciting — and it’s natural to focus on generating revenue and […]

How to use visual aids to enhance financial reporting and bring the numbers to life

Graphs, charts, tables, and other data visualizations can be inserted in your financial statement disclosures to improve transparency and draw attention to key accomplishments. As your organization prepares its year-end or quarterly financials, consider presenting some information in a more user-friendly, visual format. Reimagine data presentation  In business, the use of so-called “infographics” started with […]

5 benefits of outsourcing your accounting needs

Should your organization outsource its accounting needs? An outsourced accountant will help you with everyday accounting-related tasks, such as bookkeeping, budgeting, payroll, and financial reporting. Outsourcing also demonstrates to lenders and investors a commitment to the accuracy and integrity of your financial records. Here are five potential advantages to consider when evaluating this decision. 1. […]

Accounting policies and procedures are essential for nonprofits, too

Accounting policies nonprofits

Financial reporting isn’t all about profits. Not-for-profit entities can also benefit from implementing formal accounting processes. From preparing budgets and monitoring financial results to paying invoices and handling payroll tax, there’s a lot that falls under the accounting umbrella. Are these tasks, and others, being managed as efficiently at your organization as they could be? […]

Operating reserves can help cushion financial blows

Strong reserves can help nonprofits survive unexpected financial blows

First, the COVID-19 pandemic wreaked havoc on not-for-profit finances and operations. Now, many organizations are worried about how high inflation and a possible recession might interfere with their plans. To help prevent service disruptions and other negative outcomes, focus on building up operating reserves. Even if you can afford to divert only a small amount […]