NCLL provides quality, personalized financial guidance nonprofits in North Carolina and beyond. NCLL's expertise ranges from basic tax management and accounting/bookkeeping services to more in-depth services such as compilations, reviews, audits, 990s, financial statements, and financial planning. By combining our expertise, experience and the team mentality of our staff, we assure that every client receives the close analysis and attention they deserve.
Bookkeeping
Jaime Campbell, Tier One Services, LLC and Mig Murphy Sistrom, Mig Murphy Sistrom, CPA, PC
We are both CPAs and accounting firm owners, committed to serving the nonprofit sector. We welcome this opportunity to share our observations and advice on how the pandemic has affected the accounting work of nonprofits. Since we are both committed to centering racial equity in our work, we have applied an equity lens to these topics.
"An effective recordkeeping system enables an organization to monitor the progress of programs and aid in the preparation of financial statements and returns. If an organization does not keep required records, it may be unable to show it qualifies for exemption. Thus, the organization may lose its tax-exempt status. In addition, an organization may be unable to complete its returns accurately and may be subject to penalties."
- Who’s responsible for which kinds of oversight? The Board of Directors has overall legal responsibility for the financial health of your nonprofit. Board members need to understand key financial information and policies, and it’s recommended that they look at the following reports at least quarterly: Fiscal year budget (with comparisons to actual expenditures/revenue). Profit and loss statement (including programs).
Appropriate document retention is important for a nonprofit's compliance with state and federal law, while balancing the need for managing storage space (both physical and digital). A clear policy for staff can prevent the innocent destruction or disposal of documents.
Translate your annual operating budget into a detailed cash flow projection over the course of a fiscal year with the templates below.
Cash Flow Template (Propel Nonprofits)
Cash Flow Projection Template (Nonprofit Finance Fund)
Since there is no education credential or professional license for bookkeepers, their skillls can range widely. In this article, Mig Murphy Sistrom, CPA, provides a brief quiz that will help you determine if you need a skilled bookkeeper or not.
© North Carolina Center for Nonprofit Organizations, Inc. From Common Ground, a publication of the North Carolina Center for Nonprofits, www.ncnonprofits.org.