Nonprofit Bookkeeping & Accounting For Dummies, 2nd Edition

Nonprofit Bookkeeping & Accounting For Dummies, 2nd Edition

by Maire Loughran, Sharon Farris
Released October 2023
Publisher(s): For Dummies
ISBN: 9781394206018

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Book description

Beginner-friendly information you need to successfully manage finances in a not-for-profit organization

Nonprofit Bookkeeping & Accounting For Dummies is a helpful guide for anyone who is responsible for financial and accounting operations in nonprofit organizations or needs to read and understand a nonprofit financial statement. It includes information on the basics of nonprofit bookkeeping, general nonprofit accounting principles, basic financial statements, and specific laws and regulations that govern the accounting of nonprofit organizations. With the simple guidance in this book, you’ll learn how to keep accurate books in accordance with state and federal laws, even if your professional background isn’t in finance.

  • Learn the basics of bookkeeping and accounting, including common terminology
  • Choose the right accounting methods and software for your organization
  • Apply for, track, and account for federal grants and other grant money
  • Set up payroll accounts, complete tax forms, and navigate the audit process

Nonprofit Bookkeeping & Accounting For Dummies is the perfect, easy-to-use resource for nonprofit managers and volunteers who need to learn complex rules and regulations that govern nonprofit accounting and bookkeeping procedures.

Table of contents

  1. Cover
  2. Title Page
  3. Copyright
  4. Introduction
    1. About This Book
    2. Foolish Assumptions
    3. Icons Used in This Book
    4. Beyond the Book
    5. Where to Go from Here
  5. Part 1: Accounting and Bookkeeping Nonprofit-Style
    1. Chapter 1: Introducing Nonprofit Bookkeeping and Accounting
      1. Getting Started with Your Nonprofit’s Books
      2. Making Sure Your Books Are Balanced
      3. Finding Out about Federal Grants
      4. Paying Federal Taxes
      5. Getting a Grasp on Financial Statements
    2. Chapter 2: Starting with Basic Bookkeeping and Accounting
      1. Understanding Accounting and Bookkeeping
      2. Choosing Your Accounting Method
      3. Running Numbers on Your Assets
      4. Keeping an Eye on Your Assets
    3. Chapter 3: Introducing Financial Statements
      1. Explaining the Importance of Financial Statements
      2. Using Financial Statements to Your Advantage
      3. Identifying the Financial Statements
    4. Chapter 4: Keeping Accurate Accounting Records
      1. Going the Manual or Computer Route
      2. Creating a Manual System
      3. Using Spreadsheet Programs
      4. Exploring Nonprofit Software Programs
      5. Making Sure Your System Is Secure
  6. Part 2: Balancing Your Nonprofit’s Books
    1. Chapter 5: Setting Up the Chart of Accounts for Nonprofits
      1. Identifying and Naming Your Nonprofit’s Main Types of Accounts
      2. Assigning Numbers to the Accounts
    2. Chapter 6: Recording Accounting Transactions
      1. Explaining the Recording Process
      2. Stepping Through the Accounting Cycle
    3. Chapter 7: Keeping Tabs on Your Checking Account
      1. Getting the Lowdown on Your Checkbook Register
      2. Tracking Nonprofit Donations
      3. Subtracting Your Expenses
      4. Balancing the Checkbook
    4. Chapter 8: Starting with Manual Bookkeeping
      1. Suggesting a Manual Bookkeeping Shopping List
      2. Walking Through Journals
      3. Showing Examples of Common Nonprofit Journal Entries
      4. Incorporating Spreadsheet Programs
    5. Chapter 9: Advancing into Nonprofit Accounting Software
      1. Choosing Accounting Software
      2. Using QuickBooks for Nonprofits
      3. Selecting Aplos Fund Accounting Software
      4. Selecting ACCOUNTS
    6. Chapter 10: Balancing Cash Flow with an Operating Budget
      1. Understanding the Importance of Having a Budget in the Nonprofit World
      2. Preparing to Create an Operating Budget
      3. Coming Up with an Operating Budget
      4. Reviewing Budget Performance
  7. Part 3: Accounting for Nonprofit Situations
    1. Chapter 11: Introducing Federal Grants
      1. Grasping Why Federal Grant Money Is Important to Nonprofits
      2. Spelling Out the Basics
      3. Managing Federal Grant Money
      4. Working Through the Details of Your Grant Agreement
    2. Chapter 12: Tracking and Accounting for Federal Dollars
      1. Understanding Your Obligation
      2. Managing Grant Funds
      3. Drawing Down Federal Dollars
      4. Reporting Requirements
      5. Closing Out a Grant
    3. Chapter 13: Staying in Nonprofit Compliance
      1. Understanding Why Being Compliant Is Important for Your Nonprofit
      2. Staying in Compliance
      3. Finding Out about Accounting Standards
    4. Chapter 14: Preparing for an Audit
      1. Understanding the Audit Purpose and Need
      2. Walking Through the Independent Audit Process
      3. Identifying the Types of Grant Audits
      4. Getting Ready for the Auditor
      5. Receiving the Report of Audit Findings
      6. Discussing an IRS Examination
    5. Chapter 15: Accounting for Payroll and Payroll Taxes
      1. Setting Up Payroll Accounts for Nonprofit Employees
      2. Deducting the Right Amount of Taxes
      3. Calculating Specific FICA Payroll Taxes and Deductions
      4. Paying Quarterly Payroll Taxes with Form 941 and Electronic Funds Transfer
      5. Completing End-of-Year Forms
      6. Accounting for Contract Employees Using Form 1099-NEC
    6. Chapter 16: Doing the Accounting for Tax Form 990
      1. Choosing the Right Tax Form
      2. Knowing What Happens If You Don’t File in a Timely Manner
      3. Understanding the Minimal Requirements Using Form 990-N
      4. Qualifying to Use Form 990-EZ
      5. Filing with Form 990
      6. Completing Form 990-T (Reporting Unrelated Business Income)
  8. Part 4: Wrapping Up the Books
    1. Chapter 17: Analyzing the Statement of Activities
      1. Understanding the Statement of Activities
      2. Evaluating the Data
    2. Chapter 18: Reporting Financial Position
      1. Grasping What the Statement Says about Your Nonprofit
      2. Creating the Statement of Financial Position
      3. Evaluating the Numbers
    3. Chapter 19: Eyeing the Statement of Cash Flows
      1. Seeing What the Statement of Cash Flows Can Tell You about Your Nonprofit
      2. Understanding How to Create and Use a Statement of Cash Flows
      3. Analyzing Cash Flow Indicators
    4. Chapter 20: Organizing the Statement of Functional Expense
      1. Classifying Functional Expense
      2. Using the Statement of Functional Expense to Calculate Ratios
    5. Chapter 21: Closing the Nonprofit Books
      1. Understanding the Need to Close Your Nonprofit’s Books
      2. Adjusting, Closing, and Reversing Entries
      3. Completing the Notes to the Financial Statements
      4. Putting Last Year Behind You and Looking Forward
  9. Part 5: The Part of Tens
    1. Chapter 22: Ten Important Things to Know When Keeping a Nonprofit’s Books
      1. Monitoring Cash Contributions
      2. Keeping a Donors List
      3. Balancing Your Nonprofit’s Checkbook
      4. Leaving a Paper Trail
      5. Protecting Your Nonprofit from Employee Theft
      6. Considering Your Constituency
      7. Staying in Compliance
      8. Limiting Nonprogram Income
      9. Keeping Charities and Politics Separate
      10. Getting Free Support
    2. Chapter 23: Ten Tips for Keeping Your Nonprofit Viable
      1. Keeping Your Books Balanced
      2. Filing Paperwork with the IRS
      3. Paying Bills on Time
      4. Exploring New Fundraising Ideas
      5. Watching Your Nonprofit’s Bottom Line
      6. Looking for New Funding Streams
      7. Getting Grant-Writing Training
      8. Obtaining an Independent Audit Opinion
      9. Updating Communication Strategies
      10. Attending Networking Activities
  10. Index
  11. About the Author
  12. Connect with Dummies
  13. End User License Agreement

Product information

  • Title: Nonprofit Bookkeeping & Accounting For Dummies, 2nd Edition
  • Author(s): Maire Loughran, Sharon Farris
  • Release date: October 2023
  • Publisher(s): For Dummies
  • ISBN: 9781394206018