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Bookkeeping for Nonprofits: A Step-by-Step Guide to Nonprofit Accounting

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bookkeeping for nonprofit organizations

Because while nonprofit bookkeeping and accounting are related, they’re not the same thing. Anyone running a nonprofit organization has more important things on their mind than bookkeeping.

  • Program features include unlimited invoicing, digital payment processing via Paypal or Square, basic reports, and management of vendors and customers .
  • In terms of reporting requirements, nonprofits have to meet FAS 116 and FAS 117 (Financial Statements of Not-for-Profit Organizations) standards.
  • A non-profit is required to stay tax compliant to keep its status as a tax-exempt, 501 organization.
  • Our 990 Tax preparation Services offer nonprofit organizations a comprehensive and cost-effective approach to compliance.
  • When your in-house accountant changes report formats as often as you change your socks, it can leave you confused, or stuck defending numbers you don’t really understand.

We have over 30 years of experience performing audit and assurance services. I only need to spend a couple of hours a month on our financials.

Every donation, grant, and expense in its proper place

This information helps board members keep a finger on the pulse of the organization to determine its financial and operational health. While this may seem like a no-brainer, it is surprising how often organizations do not stringently adhere to current accounting industry standards and operate seemingly at random. These guidelines will help you transparently tell your organization’s story through its financials. MoneyMinder is a simple and easy-to-use online program that you can access anywhere.

  • We’ll help you get a full understanding of where your organization stands, what’s coming next and how you’re going to get there.
  • A. The balance sheet shows a snapshot of the organization’s financial position, including assets and liabilities.
  • Make sure your nonprofit sets some important policies and guidelines to communicate important information between the two departments.
  • Knowing how money flows in and out of your organization and sharing that data effectively with your board and donors will help your organization run more smoothly.
  • The majority of nonprofits fall into the category of organizations who would benefit from outsourcing their accounting needs.
  • We will reconcile your bank accounts to prepare your balance sheet, income statement and other financial reports upon request, as well as advise you on how to read your reports.

While having a dedicated accountant or bookkeeper—or several—on-staff is ideal, that’s not always possible for new or growing organizations. The right accounting software can help nonprofit organizations meet these standards even if they have a lean staff, so they can reach their financial objectives and minimize their costs. Many small and midsize nonprofit organizations have excellent accounting software and keep their financials in good order, but need help when it comes to donor management and donation tracking. If you’re relying on multiple spreadsheets or outdated databases, Sumac can be an affordable upgrade that can streamline how you work with your constituents. As we mentioned before, nonprofit accounting focuses on the accountability aspect of finances. Your nonprofit’s donors have the right to set restrictions on the donations they contribute to your organization and grant funders want to make sure their funds are spent on the agreed-upon programs. These restrictions mean that you have to ensure their funds are spent in a way that the supporters approve of.

Accounting Services for Nonprofits

We’ve done our best to give you a crash course into nonprofit bookkeeping. But if you’re already falling behind in your books, you can’t rely on a google search or blog article to get you back on track. But here is a list of tasks that some nonprofits push onto their bookkeepers that are bookkeeping for nonprofit organizations instead the role of an accountant. Of course, the central role of nonprofit bookkeeping is to keep the books of your organization current and accurate. On top of that, nonprofit bookkeeping requires staying updated on income tax changes and filing requirements to ensure compliance.

Which QuickBooks is best for non profits?

Which QuickBooks is best for nonprofits? The version of QuickBooks that is best for nonprofits is based on the size and needs of the organizations. QuickBooks Premier is suitable for small- to mid-sized nonprofits, while QuickBooks Enterprise supports up to 40 users and is a better choice for larger organizations.

Most organizations exempt from income tax under section 501 are still required to file Form 990 , which discloses your nonprofit’s revenues, expenses and changes to net assets to the public. Looking up a nonprofit’s Form 990—using services like Guidestar.org—can tell you a lot about its financial state. Not every nonprofit can afford to hire a professional accountant, and many nonprofits rely on in-house accounting methods. If you don’t have the funds to hire a professional, free accounting software can help guide your organization in the right direction. Most accounting software is overkill for volunteer-run nonprofits.

Best for Donation Tracking

For example, whoever is responsible for collecting donations shouldn’t be the same person updating your financial statements. Performing internal audits on a regular basis is an excellent way to keep everything in-check as well. Or maybe you have donors that buy items on behalf of your organization. It’s crucial that you account for all in-kind or non-cash contributions as well. This is especially important if your nonprofit would have otherwise bought those goods or services in question.

They also include tips on setting up files properly —— an excellent start for the harried novice who needs to set up an accounting system now. Your nonprofit bookkeeping services utilize our nonprofit accounting software, which includes online giving & donation tools. This means you can access your financial reports anytime, share reports with your leadership, manage donations, and accept giving online. Many nonprofit organizations end up cobbling together accounting, donor management, and payroll services by using multiple programs, making things confusing during end-of-year reporting. The nonprofit’s revenue and expenses differ from those of a for-profit business. Nonprofit revenue sources include donations, program fees, sales income, membership dues, investment income and proceeds from fundraising events.

Learn More About Nonprofit Bookkeeping

Another major difference is that for-profit companies sell goods or services to earn income. This makes it advantageous for nonprofits to establish a system of fund accounting. These businesses must follow a unique set of rules and guidelines.

Once you’ve got a bookkeeping system in place, you need to start creating financial statements. Looking at these documents can tell you how much money you have, where your money is, and how it got there. You could input them into nonprofit-friendly accounting software like Aplos or Nonprofit Treasurer. When the application is approved, the IRS sends confirmation the nonprofit is exempt from federal taxes as related to section 501. Similarly, nonprofits have rules regarding how money is spent, necessitating a tracking system.

Learn how to record in-kind donations

These rules ensure that all businesses use the same methodology for financial reporting. Bookkeeping for Nonprofits is a hands-on guide that offers nonprofit leaders, managers, and staff the tools they need to create and maintain a complete and accurate set of accounting records. This much-needed resource provides those with little or no bookkeeping experience with practical advice in a highly accessible format. You can use QuickBooks Enterprise Nonprofit to track expenses and donations, budget by program and compare to actuals, and create donor and grant reports. This version of QuickBooks allows you to accept donations and securely store donor information in your database. If you upgrade to the Gold, Platinum, or Diamond plans, you can even get payroll services for your organization and pay your staff directly through QuickBooks. While for-profit organizations have shareholders to appease, nonprofits have donors to thank and cultivate.

Can a non profit use QuickBooks online?

Yes! QuickBooks offers discounted products for nonprofits through TechSoup, a nonprofit tech marketplace. We recommend that churches and other houses of worship use QuickBooks Online Plus or QuickBooks Advanced so they can get all the tools, tracking, and reporting features we offer.

Get all of the information you need to efficiently manage your nonprofit with our monthly newsletter. Moreover, we also offer you the choice between our three service packages. Our goal is to help your nonprofit gain control over your finances for organizational growth and success. If you need to create an invoice, accept online donations, track notes about your supporters, it’s no problem. Aplos will send you a monthly financial statement to guide your financial health.

Knowing how money flows in and out of your organization and sharing that data effectively with your board and donors will help your organization run more smoothly. In addition, nonprofit bookkeeping will provide the data you and your team need to identify the most pressing needs that your nonprofit faces and finding ways to address them. Give yourself the opportunity to focus on fundraising, infrastructure, staffing, marketing and more — while your financials run smoothly. MIP is today’s leading accounting software for nonprofits and government organizations across the nation. Designed to let you track unlimited funds and manage your books with ease, MIP Fund Accounting® software offers a simple way to manage intricate financial processes in a single, user-friendly system. My experience inspired me to share some basic bookkeeping best practices for nonprofit organizations. To stay organized and on top of your nonprofit’s bookkeeping and accounting responsibilities, complete tasks that need to be done daily, weekly, quarterly, and yearly.

bookkeeping for nonprofit organizations

Actually, 18% of nonprofits listed limited staff as their greatest challenge in 2019. This means that finding someone to take on these responsibilities can be immensely challenging. In order to make the best financial decisions, nonprofit professionals should understand some accounting best practices. In this section, we’ll cover some best practices that nonprofit accountants can use to better handle their finances. For example, if you have $50,000 of restricted assets set aside for your scholarship program, then decide to provide a $5,000 scholarship, you’re not losing those funds. This expenditure will be reflected on your statement of activities. Nonprofit accounting professionals must adhere to specific guidelines when they create reports.

Controller Services

Although your company is different from many other nonprofit organizations, you all have similar needs when it comes to keeping your books straight. Many of us start businesses to follow our passions, and for most, that does not include accounting and bookkeeping. However, we all soon realize how essential tracking money is to keep our organizations organized to thrive. Bring in bookkeeping services that have experience with nonprofits to manage your books for you. James Halpin, C.P.A., M.S., is a software developer, systems consultant, and accountant specializing in cost accounting concepts.

bookkeeping for nonprofit organizations

If needed, we can even help with tracking your donations, paying bills and accounting for your payroll. This section reports the cash spent to purchase long-term assets and the amount received from the sale of valuable assets. While there are some nonprofit professionals who migrate to this world of charity from a for-profit organization, they are often faced with some major differences https://www.bookstime.com/ between the two industries right off the bat. And we’ll even help you understand the story behind the numbers, so you’re never left speechless in front of your finance committee. Get this FREE guide to discover what you need to do to ensure you hire the right accountant, bookkeeper, or CFO the FIRST time. At The Charity CFO, we handle the books and all of your accounting needs.

Year-End Made Easy

Without access to accurate financial reports and expert financial guidance, your organization will never be prepared for what’s coming next. Get our 3-video Masterclass to learn how to read and understand nonprofit financial reports.

We also looked at customer reviews on Capterra, a leading software review provider. The majority of nonprofits fall into the category of organizations who would benefit from outsourcing their accounting needs.

That helps us ensure your transactions are entered accurately and on time to give you confidence in your decisions. The impact of accurate bookkeeping trickles down to every aspect of your nonprofit. Efficiency, transparency, and compliance are the hallmarks of an organization with effective bookkeeping.

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Carpet Flooring: Transform Your Space with Comfort and Style

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Carpet flooring

Carpet flooring remains a favorite choice for both homes and businesses. Why? Because it makes spaces feel warm, inviting, and cozy. Carpets aren’t just about looks—they add comfort, help save energy, and can completely change the vibe of a room. This guide aims to give you everything you need to know about choosing, installing, and caring for carpet flooring. Whether you’re dreaming of a soft bedroom carpet or a durable option for high-traffic areas, I’ve got you covered.

Understanding Carpet Flooring

What Is Carpet Flooring?

Carpet flooring is a soft covering made of fibers woven into fabric. Its main parts include the pile (the surface fibers), backing (the foundation), and fibers (materials like nylon, polyester, or wool). The fibers give carpets their texture and appearance. Modern carpets come in various materials, each offering different qualities, from wool’s natural softness to nylon’s toughness.

History and Evolution of Carpet Flooring

Carpets have been around for thousands of years, originally crafted by hand from animal hides or plant fibers. Over time, manufacturing became more advanced, making carpets more durable and diverse. Today, we have endless patterns, colors, and textures, thanks to technology. Innovations like stain-resistant fibers and eco-friendly materials have made carpets both practical and stylish.

Types of Carpet Flooring

Broadloom vs. Carpet Tiles:
Broadloom carpets are large rolls, typically measuring 12-15 feet wide, suited for smooth, seamless looks.
Carpet tiles are smaller squares or rectangles, easy to install and replace. They work well in commercial spaces or areas prone to damage.

Loop Pile, Cut Pile, and Combination Pile:
Loop pile carpets have uncut fibers looped into the backing, making them strong and good for high traffic.
Cut pile carpets have fibers cut at the surface, offering a plush feel, perfect for bedrooms.
Combination pile uses both, combining durability with softness for versatile use.

Benefits of Carpet Flooring

Comfort and Aesthetics

Nothing beats the softness of a carpet underfoot. It adds a warm, plush look that instantly makes a room more inviting. Plus, circular patterns and bold textures let you customize your space easily.

Insulation and Energy Efficiency

Carpets act like a blanket, trapping heat and reducing drafts. Studies show that they can save up to 10% on heating bills. Additionally, they absorb sound, making rooms quieter and more peaceful.

Safety and Maintenance

Carpets create a cushioned surface, reducing slips and falls—especially important in households with children or elderly people. Modern fibers also resist stains and are simple to clean, making upkeep manageable.

Cost-Effectiveness

Compared to hardwood or tile, carpets usually cost less to buy and install. Plus, their friedly long haul means they last many years with proper care, giving you good value for money.

Selecting the Right Carpet Flooring

Factors to Consider

Think about how much foot traffic the room gets. High-traffic zones need durable carpets, while bedrooms can have softer, plush options. Budget plays a big role, too. Match your style with colors and patterns that fit your decor—bright, neutral, or bold.

Popular Carpet Styles and Their Best Uses

Plush Carpets:
Ideal for bedrooms and living rooms; they offer a smooth, luxurious feel.

Berber and Loop Carpets:
Perfect for busy hallways or offices because they hide dirt and withstand wear well.

Shag Carpets:
Great for adding a dramatic look; they’re soft and cozy, perfect for casual spaces.

Expert Recommendations

Interior designers suggest choosing carpets with a high rating for durability if you want them to last. Certified options, like those with Green Label Plus, are eco-friendly and healthier for indoor air quality.

Installing Carpet Flooring

Preparation and Planning

Start with a clean, level subfloor. Remove old flooring and check for any damage. Measure the room accurately to order enough material—it’s better to have a little extra than come up short.

Installation Process

The process involves cutting the carpet to size, laying down adhesive or using tack strips, and stretching the carpet tight across the floor. Finally, trimming the edges and sealing seams completes the look.

Cost Considerations

Expect to pay anywhere from $3 to $10 per square foot, depending on the type of carpet. Don’t forget additional costs for padding, transition strips, or repairs. Professional installation might add to the price but ensures a smooth, long-lasting fit.

Maintenance and Longevity of Carpet Flooring

Daily and Weekly Care

Vacuum regularly—at least once a week—to keep dirt at bay. Attend to spills immediately with gentle blotting and mild cleaners. Avoid rubbing to prevent fiber damage.

Deep Cleaning and Professional Care

Schedule steam cleaning every 12-18 months for best results. Professional services remove deep dirt and allergens, extending your carpet’s lifespan.

Extending Carpet Life

Use rugs or mats in high-traffic areas to reduce wear. Move furniture periodically to prevent indentations, and keep doors open for good airflow. With proper care, carpets can serve you well for 10-15 years.

Troubleshooting Common Issues

Watch out for fiber crushing, stubborn stains, or mold caused by excess moisture. Small repairs or patching can fix minor tears. When carpets become worn or stained beyond repair, it’s time for a replacement.

Purchasing Tips for Carpet Flooring

Shopping Strategies

Compare several stores or websites to find the best quality and price. Look for certifications like Green Label Plus to ensure eco-friendliness. Ask about warranties to protect your investment.

Sustainable and Eco-Friendly Options

Choose carpets made from recycled fibers or low VOC adhesives. These choices are better for the environment and improve indoor air quality, especially in homes with kids or pets.

Best Places to Buy Carpet Flooring

Local flooring stores often provide expert advice and hands-on assistance. Big-box retailers can be budget-friendly, but online options sometimes offer more variety. Skilled staff can help you select the perfect product for your needs.

Conclusion

Carpet flooring offers comfort, style, and energy savings that few other options match. Taking the time to choose the right type, style, and installation method ensures long-term satisfaction. With proper care and maintenance, your carpet becomes a cozy foundation that enhances your space’s look and feel. When shopping, prioritize durability and personal style—your perfect carpet awaits.

Credit:

High Plains Flooring & Blinds

6614 Camden Blvd, Fountain, CO 80817

(719) 542-2002

office@highplainsfloors.com

Hours:

Mon-Fri: 9am – 5pm

Sat: 9am – 1pm, Sun: Closed

Find us on the Maps:

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Cheap Doesn’t Mean Cheap Looking: Affordable Hardwood Floors Trends

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hardwood floors

Many people think that good-looking hardwood floors have to come with a high price tag. They believe that affordable options will look cheap or outdated. But that isn’t always true. You can find stylish, durable, and affordable hardwood flooring that turns any room into a high-end space.

Today, more trends are making inexpensive hardwood look luxury. Without breaking the bank, you can still get floors that impress.

Understanding the Perception of Cheap-Looking Hardwood Floors

The stigma around inexpensive flooring

Some think that cheap hardwood always means low quality. They see it as dull, thin, or poorly finished. This makes many hesitate to pick affordable options, worried about resale value or style. It’s a common myth that lower costs come with lower class.

How quality is measured

What makes hardwood high quality? Usually, it’s about thickness, finish, and grain type. Thicker planks last longer and handle wear better. A smooth, high-quality finish looks better and lasts longer. The type of wood grain can also make a big difference. Careful craftsmanship and good materials show off quality, even in affordable floors.

Affordable Hardwood Floor Trends

Trend 1: Wide Planks for a Modern Look

Wide planks are trending now because they give a room a spacious, sleek feel. These larger boards look more expensive and are often cheaper per square foot. They are easier to install and come in many finishes. Sourcing wider planks from local suppliers can save money too.

Trend 2: Reclaimed and Recycled Wood

Reclaimed wood is popular not only because it’s eco-friendly but also because it looks authentic and stylish. Every piece has character, knots, and a weathered charm that high-end flooring can’t match. Plus, using recycled wood often costs less than new, premium hardwood.

Trend 3: Natural, Neutral Color Palettes

Colors like soft browns, greys, and beige are in. These shades make floors look more upscale because they match any decor. Neutral tones also hide dirt better and create a timeless style. It’s easier to update accessories if your flooring stays simple and elegant.

Trend 4: Textured and Hand-Scraped Finishes

Texture adds depth and disguises scratches or dents. Hand-scraped or wire-brushed finishes give a crafted look without the price of custom work. Many affordable engineered hardwoods now come with these textures, saving you money while adding style.

Trend 5: Innovative, Budget-Friendly Materials

Engineered hardwood options have come a long way. They look very real, with detailed grain patterns and matte finishes. Even laminate or hybrid floors mimic the appearance of natural wood perfectly. These materials cost less but can give your space a high-end feel.

hardwood floors
Cheap Doesn’t Mean Cheap Looking: Affordable Hardwood Floors Trends 56

Also read: Secrets to Cleaning Your Home in Half the Time

Tips for Achieving Luxurious Looks on a Budget

Choosing the Right Grade and Finish

Select flooring grades that mimic premium styles. Premium-looking finishes like matte or satin add elegance. You don’t need the top-tier grade to get a rich look — just choose carefully and focus on finish quality.

Proper Installation Techniques

A good installation makes all the difference. Hiring a professional ensures a neat, seamless appearance. If you do it yourself, pay attention to leveling and spacing. Small efforts in installation can make affordable floors look custom and luxury.

Maintenance and Upkeep

Keeping your floors clean is key. Regular sweeping and gentle cleaning extend their life and keep them looking fresh. Avoid harsh chemicals, and use mats to trap dirt. Well-maintained floors look more expensive and last longer, even if they cost less initially.

Real-World Examples of Affordable Hardwood Success

Case Study 1: Chic Urban Apartments

A city apartment used budget-friendly engineered hardwood with a wide plank design. The result? A modern, spacious look that rivaled much more expensive choices. Reclaimed wood accents added character without extra cost.

Case Study 2: Suburban Home Renovation

A family renovated their home on a tight budget. They chose neutral, textured floors with hand-scraped finishes. Proper installation and regular care brought a touch of luxury that impressed even friends and visitors.

Expert Opinions

Many flooring specialists confirm that affordable doesn’t mean low class. Interior designers often mix budget options with high-end accessories to create stunning spaces. They say focus on finish quality, texture, and color for a luxurious look.

Conclusion

Affordable hardwood flooring can look just as classy as high-end options when you pick the right styles and techniques. Trends like wide planks, reclaimed wood, and textured finishes are making budget floors more appealing.

By focusing on quality sourcing, smart design choices, and good upkeep, you can get flooring that feels luxurious without overspending. Remember, style isn’t about cost — it’s about how you choose and care for what you have. So, don’t shy away from budget-friendly hardwood. Instead, let these trends inspire your next home upgrade.

Reference:

ARTISTIC FLOORING

Whether you’re looking for the best flooring options, need a quote, or want to schedule a free flooring consultation, we’re just a call or click away. 

Call Us

+1 (757) 689 1695

Email Us

artisticflooringva@gmail.com


Find Us

3200 Dam Neck Road Suite #110
Virginia Beach, VA 23453

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Why do Businesses Need Human resource Consulting Services?

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Human resource

Human resource consulting firms play a vital role in today’s business landscape. They offer several key benefits and importance to organizations:

Expertise and Specialization:

HR consultants bring specialized knowledge and expertise to the table. They stay up-to-date with the latest HR trends, best practices, and legal regulations. This expertise is precious for businesses without dedicated HR staff or require support in complex HR areas.

Cost-Effective Solutions:

Engaging HR consultants can often be more cost-effective than hiring and maintaining an in-house HR department. Businesses can access high-quality HR services as needed, reducing fixed labor costs.

Customization:

HR consultants tailor their services to meet the specific needs of each client. Whether recruitment, employee training, or policy development, consultants design solutions that align with the organization’s unique goals and challenges.

Objective Perspective:

Consultants offer an objective and impartial perspective on HR matters. They can provide insights and recommendations without being influenced by internal biases or politics, which can be valuable for making difficult HR decisions.

Efficiency and Productivity:

HR consultants can streamline HR processes, making them more efficient. This can improve productivity, as employees spend less time on administrative tasks and more on strategic activities.

Compliance and Risk Management:

HR consultants help organizations comply with labor laws and regulations, reducing the risk of legal issues, fines, and reputational damage. They also assist in implementing best practices for risk management.

Strategic Focus:

Organizations can free up their internal resources by outsourcing HR tasks to consultants to focus on core business activities and strategic initiatives. This can lead to improved business performance and growth.

Scalability:

HR consulting firms can adapt to an organization’s changing needs. Whether a business is expanding, downsizing, or facing other transitions, consultants can provide flexible HR solutions to support these changes.

Access to Technology:

Many HR consulting firms have access to advanced HR technology and software solutions that may be cost-prohibitive for smaller organizations to implement independently. This technology can enhance HR processes and data management.

Talent Acquisition and Development:

HR consultants excel in talent acquisition and development. They can help organizations attract top talent, assess employee potential, and implement training and development programs to improve workforce skills.

Confidentiality:

HR consultants are bound by confidentiality agreements, ensuring that sensitive HR issues and employee data are handled with discretion and professionalism.

Conflict Resolution:

Consultants can mediate and assist in resolving workplace conflicts and issues, promoting a harmonious work environment.

Global Expertise:

 For businesses with international operations, HR consultants with global expertise can help navigate the complexities of international HR regulations and practices.

In summary, human resources consulting firms provide valuable support to organizations by offering expertise, cost-effective solutions, and a strategic approach to managing their workforce.

Their ability to adapt to changing needs, ensure compliance, and improve HR processes makes them an essential resource for businesses looking to thrive in today’s competitive environment.

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