Bookkeeping and Accounting Services for NONPROFITS

Bookkeeping and accounting services for nonprofits and charities from $40 per month

Bookkeeping services for nonprofits and charities include creating fund accounts, tracking funds and expenses, and reporting to the donor. Briefly, accounting for nonprofits is about precise tracking, following rules and regulations, and creating piles of documentation to reflect each activity of a nonprofit organization.

Nonprofit organizations account for their business transactions differently than other organizations. They use an accounting system called fund accounting. The fund accounting system controls the use of given donations. Nonprofit organization categorizes restricted and nonrestricted funds. The Chart of Accounts reflects this categorization.
Restricted funds obey strict rules; nonprofits must use donations for the same purpose they originally asked the donor. When a donor donates a resource for a specific need, nonprofit uses this resource for this need. Nonprofit organizations truck these restricted funds and report to donors the resource usage.
Unrestricted funds do not follow the same strict rules as restricted funds. Nonprofit uses these funds for any intent they consider needed.
Donated resources can be either tangible or intangible assets.
Any donated asset (service or good) must have a fair market value. CRA follows specific rules on how to evaluate donations. In addition, tax rules for nonprofits are different. Nonprofits are exempt from paying income tax but may be required to file a T1044 NPO form. Corporate nonprofits have to file a T2 return (Short Form). One more note about donations: they are tax-deductible for the donor. When a nonprofit organization records a donated item, it sends an acknowledgment letter to the donor. Donors include these letters for taxation purposes.

Why Accounting for Nonprofits is so different?

Bookkeeping and Accounting Pricing for Nonprofits

Starting from $40 per month

You generate up to $100,000 in funds and require reconcile one bank account.

We prepare the T1 tax package for the business owner. Additional charge for filing corporate T2 tax.

Reach us by email or phone to book an appointment. If you would like to discuss your business over the Internet we work with Zoom, Skype, or Teams.

QuickBooks Online offers functions you need to run your nonprofit business such as:

• Donor (Vendor) management

• Budget management, including tracking by fund or by donor

• Expense management

• Accepting donations wherever you are using mobile technology

• Integrating third party donation apps

• Generation financial report

• Custom reporting: Tags, Classes, and Locations help generate financial reports grouped by fund categories and show how, when, and where nonprofit organizations use each fund

Can you use QuickBooks Online to manage your nonprofit business?