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- Herausgeber: John Wiley & Sons
- Kategorie: Fachliteratur
- Sprache: Englisch
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.
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Seitenzahl: 594
Veröffentlichungsjahr: 2023
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Nonprofit Bookkeeping & Accounting For Dummies®
To view this book's Cheat Sheet, simply go to www.dummies.com and search for “Nonprofit Bookkeeping & Accounting For Dummies Cheat Sheet” in the Search box.
Table of Contents
Cover
Title Page
Copyright
Introduction
About This Book
Foolish Assumptions
Icons Used in This Book
Beyond the Book
Where to Go from Here
Part 1: Accounting and Bookkeeping Nonprofit-Style
Chapter 1: Introducing Nonprofit Bookkeeping and Accounting
Getting Started with Your Nonprofit’s Books
Making Sure Your Books Are Balanced
Finding Out about Federal Grants
Paying Federal Taxes
Getting a Grasp on Financial Statements
Chapter 2: Starting with Basic Bookkeeping and Accounting
Understanding Accounting and Bookkeeping
Choosing Your Accounting Method
Running Numbers on Your Assets
Keeping an Eye on Your Assets
Chapter 3: Introducing Financial Statements
Explaining the Importance of Financial Statements
Using Financial Statements to Your Advantage
Identifying the Financial Statements
Chapter 4: Keeping Accurate Accounting Records
Going the Manual or Computer Route
Creating a Manual System
Using Spreadsheet Programs
Exploring Nonprofit Software Programs
Making Sure Your System Is Secure
Part 2: Balancing Your Nonprofit’s Books
Chapter 5: Setting Up the Chart of Accounts for Nonprofits
Identifying and Naming Your Nonprofit’s Main Types of Accounts
Assigning Numbers to the Accounts
Chapter 6: Recording Accounting Transactions
Explaining the Recording Process
Stepping Through the Accounting Cycle
Chapter 7: Keeping Tabs on Your Checking Account
Getting the Lowdown on Your Checkbook Register
Tracking Nonprofit Donations
Subtracting Your Expenses
Balancing the Checkbook
Chapter 8: Starting with Manual Bookkeeping
Suggesting a Manual Bookkeeping Shopping List
Walking Through Journals
Showing Examples of Common Nonprofit Journal Entries
Incorporating Spreadsheet Programs
Chapter 9: Advancing into Nonprofit Accounting Software
Choosing Accounting Software
Using QuickBooks for Nonprofits
Selecting Aplos Fund Accounting Software
Selecting ACCOUNTS
Chapter 10: Balancing Cash Flow with an Operating Budget
Understanding the Importance of Having a Budget in the Nonprofit World
Preparing to Create an Operating Budget
Coming Up with an Operating Budget
Reviewing Budget Performance
Part 3: Accounting for Nonprofit Situations
Chapter 11: Introducing Federal Grants
Grasping Why Federal Grant Money Is Important to Nonprofits
Spelling Out the Basics
Managing Federal Grant Money
Working Through the Details of Your Grant Agreement
Chapter 12: Tracking and Accounting for Federal Dollars
Understanding Your Obligation
Managing Grant Funds
Drawing Down Federal Dollars
Reporting Requirements
Closing Out a Grant
Chapter 13: Staying in Nonprofit Compliance
Understanding Why Being Compliant Is Important for Your Nonprofit
Staying in Compliance
Finding Out about Accounting Standards
Chapter 14: Preparing for an Audit
Understanding the Audit Purpose and Need
Walking Through the Independent Audit Process
Identifying the Types of Grant Audits
Getting Ready for the Auditor
Receiving the Report of Audit Findings
Discussing an IRS Examination
Chapter 15: Accounting for Payroll and Payroll Taxes
Setting Up Payroll Accounts for Nonprofit Employees
Deducting the Right Amount of Taxes
Calculating Specific FICA Payroll Taxes and Deductions
Paying Quarterly Payroll Taxes with Form 941 and Electronic Funds Transfer
Completing End-of-Year Forms
Accounting for Contract Employees Using Form 1099-NEC
Chapter 16: Doing the Accounting for Tax Form 990
Choosing the Right Tax Form
Knowing What Happens If You Don’t File in a Timely Manner
Understanding the Minimal Requirements Using Form 990-N
Qualifying to Use Form 990-EZ
Filing with Form 990
Completing Form 990-T (Reporting Unrelated Business Income)
Part 4: Wrapping Up the Books
Chapter 17: Analyzing the Statement of Activities
Understanding the Statement of Activities
Evaluating the Data
Chapter 18: Reporting Financial Position
Grasping What the Statement Says about Your Nonprofit
Creating the Statement of Financial Position
Evaluating the Numbers
Chapter 19: Eyeing the Statement of Cash Flows
Seeing What the Statement of Cash Flows Can Tell You about Your Nonprofit
Understanding How to Create and Use a Statement of Cash Flows
Analyzing Cash Flow Indicators
Chapter 20: Organizing the Statement of Functional Expense
Classifying Functional Expense
Using the Statement of Functional Expense to Calculate Ratios
Chapter 21: Closing the Nonprofit Books
Understanding the Need to Close Your Nonprofit’s Books
Adjusting, Closing, and Reversing Entries
Completing the Notes to the Financial Statements
Putting Last Year Behind You and Looking Forward
Part 5: The Part of Tens
Chapter 22: Ten Important Things to Know When Keeping a Nonprofit’s Books
Monitoring Cash Contributions
Keeping a Donors List
Balancing Your Nonprofit’s Checkbook
Leaving a Paper Trail
Protecting Your Nonprofit from Employee Theft
Considering Your Constituency
Staying in Compliance
Limiting Nonprogram Income
Keeping Charities and Politics Separate
Getting Free Support
Chapter 23: Ten Tips for Keeping Your Nonprofit Viable
Keeping Your Books Balanced
Filing Paperwork with the IRS
Paying Bills on Time
Exploring New Fundraising Ideas
Watching Your Nonprofit’s Bottom Line
Looking for New Funding Streams
Getting Grant-Writing Training
Obtaining an Independent Audit Opinion
Updating Communication Strategies
Attending Networking Activities
Index
About the Author
Connect with Dummies
End User License Agreement
List of Tables
Chapter 6
TABLE 6-1 Understanding Normal Balances of Accounts
Chapter 15
TABLE 15-1 Due Dates for Quarterly Filing of Form 941
Chapter 16
TABLE 16-1 Tax Thresholds for Form 990
Chapter 17
TABLE 17-1 Revenues Collected for 2023
TABLE 17-2 Percentage of Revenues from Sources
TABLE 17-3 Comparing Prior-Year Data to Current-Year Data
List of Illustrations
Chapter 1
FIGURE 1-1: The standard journal entry format.
FIGURE 1-2: Recording cash received via donors and grants.
Chapter 2
FIGURE 2-1: A comparison of the straight-line and double-declining balance depr...
Chapter 3
FIGURE 3-1: A statement of activities, multicolumn format.
FIGURE 3-2: A statement of activities, single-column format.
FIGURE 3-3: A classified statement of financial position.
FIGURE 3-4: A basic cash flow statement.
FIGURE 3-5: A partial statement of functional expense.
Chapter 4
FIGURE 4-1: Donor information captured in Excel.
FIGURE 4-2: AutoSum cell formula.
Chapter 5
FIGURE 5-1: A typical chart of accounts.
Chapter 6
FIGURE 6-1: The accounting process.
FIGURE 6-2: Journal entry recording $100 cash purchase.
FIGURE 6-3: A sample general ledger page.
Chapter 7
FIGURE 7-1: A nonprofit’s checkbook register.
FIGURE 7-2: Bank statement reconciliation.
Chapter 8
FIGURE 8-1: A partial manual cash receipts journal.
FIGURE 8-2: A partial manually prepared cash disbursements journal.
FIGURE 8-3: A partial manual sales journal.
FIGURE 8-4: A partial manual purchases journal.
FIGURE 8-5: Recording donor transactions in the manual general journal.
FIGURE 8-6: Recording cost/expense transactions in the manual general journal.
FIGURE 8-7: Recording cost/expense transactions in the manual general ledger.
FIGURE 8-8: Working trial balance worksheet.
FIGURE 8-9: A cash receipts journal in Excel.
FIGURE 8-10: Vertical analysis.
Chapter 9
FIGURE 9-1: The QuickBooks menu in Business view.
FIGURE 9-2: Changing your company type to nonprofit.
FIGURE 9-3: Changing customers to donors in QuickBooks.
FIGURE 9-4: A QuickBooks Paycheck Summary.
FIGURE 9-5: A QuickBooks general journal entry.
FIGURE 9-6: A QuickBooks general ledger.
FIGURE 9-7: A check register payment and deposit form.
FIGURE 9-8: A partial check register.
FIGURE 9-9: A general journal entry form.
FIGURE 9-10: An accounts payable form.
FIGURE 9-11: Donor menu options.
FIGURE 9-12: A partial chart of accounts.
FIGURE 9-13: The ACCOUNTS main menu.
FIGURE 9-14: The ACCOUNTS deposit form.
FIGURE 9-15: The ACCOUNTS check form.
FIGURE 9-16: The ACCOUNTS financial reports menu.
Chapter 10
FIGURE 10-1: A sample operating budget.
Chapter 11
FIGURE 11-1: The grant life cycle.
FIGURE 11-2: Indirect cost rate calculation.
Chapter 12
FIGURE 12-1: Post-Award Forms Repository.
Chapter 15
FIGURE 15-1: Percentage method Step 1.
FIGURE 15-2: Percentage method Step 2.
FIGURE 15-3: Percentage method Step 3.
Chapter 17
FIGURE 17-1: A sample statement of activities using multicolumn format.
FIGURE 17-2: A sample statement of activities using single-column format.
Chapter 18
FIGURE 18-1: A classified statement of financial position.
FIGURE 18-2: The asset section of an unclassified statement of financial positi...
Chapter 19
FIGURE 19-1: An example of a statement of cash flows using the indirect method.
FIGURE 19-2: An example of a statement of cash flows using the direct method.
Chapter 20
FIGURE 20-1: Sample statement of functional expense.
FIGURE 20-2: A simple time sheet helps you track employees’ hours.
Chapter 21
FIGURE 21-1: Abbreviated working trial balance.
FIGURE 21-2: A sample notes of disclosure.
Guide
Cover
Table of Contents
Title Page
Copyright
Begin Reading
Index
About the Author
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Nonprofit Bookkeeping & Accounting For Dummies®, 2nd Edition
Published by: John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030-5774, www.wiley.com
Copyright © 2024 by John Wiley & Sons, Inc., Hoboken, New Jersey
Media and software compilation copyright © 2024 by John Wiley & Sons, Inc. All rights reserved.
Published simultaneously in Canada
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Library of Congress Control Number: 2023943486
ISBN 978-1-394-20601-8 (pbk); ISBN 978-1-394-20602-5 (ebk); ISBN 978-1-394-20607-0 (ebk)
Introduction
Counting the money in your wallet or purse is an act of accounting. And if you ever make a note of how much you have, you’re performing a bookkeeping function. You count things all the time in everyday life without thinking twice about accounting. For example, you count the plates before setting the table at home. You count the number of emails you receive while you’re out of the office. Even a gesture such as looking at your watch and thinking about how much time you have before your next appointment is a form of accounting.
Bookkeeping and accounting involve general accounting, cost accounting, budgeting, and internal auditing. Even though your organization is a nonprofit, these services are essential parts of your daily activities. Adjacent to bookkeeping and accounting tasks and important for most nonprofits are external auditing, tax return preparation, and management advisory services.
In the wake of increasing nonprofit accountability, understanding how to track and account for the everyday activities of your nonprofit is important. Keeping the books for a nonprofit is exciting. Getting federal grant money to fund your programs relieves financial stress. Getting a clean bill of health from your financial audit adds credibility.
About This Book
Bookkeeping and accounting for nonprofits involves several fundamental steps. Beginning with a simple transaction such as a donation and ending with financial statements, you go through a yearly accounting cycle of 12 months. The cycle repeats as long as your nonprofit continues to operate.
This book explains normal day-to-day transactions, preparing financial statements, and getting ready for audits. It also discusses keeping your books using a manual or automated system. Thus, this book is helpful for nonprofit directors, managers, bookkeepers, and accountants.
This book is designed to help you with everything you need to know to operate your nonprofit according to generally accepted accounting principles (GAAP). It covers information about the steps to file your own payroll taxes and federal tax Form 990. It also explains how to account for many different nonprofit situations.
This book is a reference tool you can pick up from time to time during your accounting cycle to brush up on the following nonprofit events:
Entering into a transaction with a second party
Preparing a business document, such as a sales invoice, that leaves a paper trail
Recording a transaction in a journal, which is the book of original entry
Posting journals to the general ledger
Reporting on financial statements
Paying taxes and getting ready for audits
This book serves as a reference tool, no matter where you are in the accounting process, by helping you reach your ultimate goal of accurate financial statements.
Within this book, you may note that some web addresses break across two lines of text. If you’re reading this book in print and want to visit one of these web pages, simply key in the web address exactly as it’s noted in the text, pretending as though the line break doesn’t exist. If you’re reading this as an e-book, you’ve got it easy — just click the web address to be taken directly to the web page.
Foolish Assumptions
I assume you don’t have more than a rudimentary knowledge of nonprofit accounting, and I’m guessing you’re one of the following people:
The executive director of a newly formed, small nonprofit, wanting to know how to manage your own books
The director or manager of a midsize nonprofit wanting to understand a little more about how to manage day-to-day accounting operations
Someone interested in seeking employment keeping the books of a nonprofit organization
Someone interested in bookkeeping and accounting as a profession
Someone who has already been performing the functions in this book who’s not sure if they’ve been doing them correctly
Someone who’s thinking about starting their own nonprofit and wanting to know how an effective nonprofit keeps track of its bookkeeping and accounting needs
Icons Used in This Book
Throughout the book, you see the following icons in the margins:
Text accompanied by the Tip icon contains useful hints you can apply to make handling your nonprofit a bit easier and more successful.
When you see the Remember icon, warm up your brain cells, because this icon sits next to information you want to commit to memory.
Looking for what not to do in the world of nonprofit accounting? Check out paragraphs next to the Warning icon, because they alert you to what can trip you up while working in the field.
The Technical Stuff icon includes information that enhances the topic under discussion but isn’t necessary to understand the topic. If you’re short on time, you can skip anything marked with this icon.
Beyond the Book
In addition to the material in the print or e-book you’re reading right now, this product also comes with a free Cheat Sheet that covers the three key nonprofit financial statements, as well as important terms and definitions. To get this Cheat Sheet, simply go to www.dummies.com and type Nonprofit Bookkeeping & Accounting For Dummies Cheat Sheet in the Search box.
Where to Go from Here
If you’re a nonprofit director wanting to find out how to start keeping your books, turn to Chapter 2 on basic bookkeeping, Chapter 7 on balancing your checkbook, or Chapter 5 on setting up your chart of accounts. If securing a federal grant is on your mind, head to Chapter 11. Check out the table of contents or index for a topic that interests you, or jump in anywhere to find the nonprofit accounting or bookkeeping information you’re wondering about.
Part 1
Accounting and Bookkeeping Nonprofit-Style
IN THIS PART …
Brush up on basic accounting terminology and financial statements.
Account for your nonprofit’s activities using either a manual recordkeeping system or a sophisticated computerized system.
Understand the difference between a debit and a credit.
Find out how to expense assets and which steps you should follow to keep your accounting books in order.
Get a basic understanding of the bookkeeping and accounting processing you need to master to get an approved audit.
