Nonprofit Bookkeeping & Accounting For Dummies, 2nd Edition

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 ...