Build records around the work your organization does.

Organize revenue and program information

The service discusses income statements, balance sheets, program expenses and revenue support schedules. It identifies donations, membership fees and other sources of support as information to track. Prepare an overview of your programs and the categories already used in your records.

• Sources of support and revenue
• Program expense records
• Existing financial statements
• Reporting questions for staff or the board

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Support the accounting system

Design, training and maintenance of the accounting system are part of our service. Explain who enters the records, who reviews them and which reports the board or management uses. If records are incomplete, identify the affected periods and the information available.

Plan connected administrative work

Payroll, annual IRS tax forms and board training on budgeting and management practices are part of our service. The exact filing and reporting work depends on the organization. Questions about incorporation, legal governance or tax-exempt status may require coordination with qualified legal or other advisers; no approval outcome is promised here.

Keep program questions connected to the funding records

A nonprofit may need to explain both what it received and how activities used those resources. Start with the programs the organization actually operates and the documents attached to its support. Include grant agreements, donor correspondence and membership arrangements where relevant. Rather than assuming every receipt has the same purpose, identify any stated condition or reporting request for review. The accounting discussion can then consider how the existing categories relate to the information management or the board needs. Keep questions about the interpretation of an agreement visible for the appropriate adviser.

Assemble records for the board and annual reporting discussion

Bring the most recent financial reports alongside the documents that explain the organization's activities. If the board uses a different schedule from the accounting system, include both and describe the differences. The IRS explains that exempt organizations generally have annual information reporting requirements, with exceptions and different forms depending on the organization. A nonprofit label alone does not determine the filing work. Identify the entity's status, prior filings and any correspondence so the applicable requirements can be discussed.

• Organization documents and any IRS determination or status correspondence.
• Prior annual filings and records of what was submitted.
• Program budgets, expense detail and grant or donor agreements.
• Board reports and the questions they currently leave unanswered.
• A list of revenue sources, responsible staff and upcoming reporting dates.

Example: one event supports more than one activity

Example: an organization holds a fundraiser supporting two programs while also paying shared event costs. Staff want to know how to present the event in management reports and what supporting detail should be retained. The useful starting point is the event's actual revenue and expenses, the related donor communications and the reporting purpose. Decide which questions need accounting review before inventing an allocation solely to make the report appear balanced. This example is a discussion aid. It does not establish a required expense allocation or determine the treatment of a particular contribution.

Define who maintains the records between reviews

Nonprofit accounting often involves staff, volunteers and board members with different responsibilities. Identify who records receipts, approves spending, maintains supporting documents and answers questions about programs. If a volunteer is stepping down, discuss the records and explanations needed for the handoff. Ongoing accounting supports recurring records; a new accounting system, payroll arrangement or unresolved filing history may need its own scope. Ask how program changes will be reflected in reporting and who will review the results. Keep legal governance and tax status questions connected with the appropriate advisers rather than assuming the accounting engagement covers every organizational responsibility. If a grantor has requested a particular schedule, bring the request itself. The reporting period and required categories may differ from the board's usual presentation and should be understood before the work is scoped.