NONPROFITS
A nonprofit’s books have to answer a question a regular business never has to ask: whose money is this, and what are we allowed to spend it on. PFGTAX does bookkeeping built around fund accounting, so restricted grants stay restricted, your board gets numbers they can trust, and your Form 990 isn’t a scramble every year. Call 888.879.0463 to talk with someone who understands nonprofit finance.
Nonprofit bookkeeping isn’t the same discipline as small business bookkeeping, even though a lot of nonprofits end up with a bookkeeper who treats it that way. The core difference is that not all of your money is the same kind of money. Some of it comes with restrictions attached, some of it doesn’t, and mixing those together is one of the fastest ways to lose a funder’s trust or fail an audit.
Fund accounting, so restricted money stays restricted
When a grant or donation comes in earmarked for a specific purpose, your books need to track that money separately from your general operating funds until it’s spent the way it was intended. We set up fund accounting so restricted and unrestricted funds are always distinguishable, and you can show a funder exactly how their money was used, because the records were built that way from the start.
Grant tracking that holds up when a funder asks
Grants often come with reporting requirements, spending deadlines, and specific allowable expenses. We track grant funds individually, so you know what’s been spent, what remains, and whether you’re staying within the terms of the award. When a funder asks for a report, the numbers are already organized instead of being reconstructed under deadline pressure.
Books built to make Form 990 straightforward
Form 990 asks for information most for-profit accounting systems were never built to produce cleanly, including functional expense allocation between program, administrative, and fundraising costs. We keep your books organized around those categories throughout the year, so when it’s time to file, the information is already there instead of being pieced together at the last minute.
What we handle for nonprofits
- Fund accounting with restricted and unrestricted funds tracked separately
- Grant tracking and compliance recordkeeping
- Functional expense allocation for program, admin, and fundraising costs
- Board-ready financial statements and reporting
- Donor and donation recordkeeping
- Monthly bookkeeping, reconciliation, and financial statements
- Catch-up and cleanup bookkeeping to get current
- Books ready for Form 990 preparation and independent audits
Built for organizations accountable to more than one audience
Your board, your funders, and the IRS all want to see something different from your books, and all of them deserve accurate answers. We keep your records organized so you can meet every one of those obligations without redoing your bookkeeping three different ways.
FAQ
What is fund accounting and why does my nonprofit need it
Fund accounting tracks restricted funds, like a grant designated for a specific program, separately from your general operating funds. It matters because you have to be able to prove that restricted money was spent the way it was supposed to be spent, and regular bookkeeping doesn’t do that automatically.
Can you help track grant spending and compliance?
Yes. We track grant funds individually against their terms and reporting requirements, so you always know what’s been spent, what’s left, and whether you’re within the award’s conditions.
What is functional expense allocation and do I need it?
It’s the breakdown of your expenses into program, administrative, and fundraising categories, which Form 990 requires. We organize your books around these categories throughout the year, so the allocation is already done when it’s time to file.
Do you prepare our books for an independent audit?
Yes. If your nonprofit is required to have an independent audit, we keep your records organized and reconciled in a way that supports that process rather than working against it.
What size or type of nonprofits do you work with?
We work with nonprofits of varying sizes, from small organizations running on a handful of grants to larger nonprofits with multiple funding sources and board reporting requirements.
Give your board and your funders the numbers they deserve. Call to set up a consultation.
OR email us info@pfgtax.com