Bookkeeping

Before you develop your new budget, examine your nonprofit’s past budgets, financial reports, and donor base to gain a https://nerdbot.com/2025/06/10/the-key-benefits-of-accounting-services-for-nonprofit-organizations/ clear understanding of its financial situation. As your nonprofit grows and evolves, be prepared to shift resources to more critical areas of your mission. A better way to understand how much you should pay staff … Read more

The distinction is made on the basis of time period within which the liability is expected to be settled by the entity. Business owners typically have a mortgage payable account if they have business property loans. Interest payable makes up the amount of interest you owe to your lenders or vendors. Interest payable can include … Read more

However, a small nonprofit may only have one program, and that’s the one exception when no program budget is needed. Too many nonprofits operate with an attitude of scarcity because they assume that’s what their donors (including funders) want. However, if you are operating in the black, then you’re not only fulfilling your mission, but … Read more

That means your revenue will also include any donations pledged in the period (whether you collected the cash or not) and any receivables (for services rendered but not yet paid). Mastering nonprofit financial statements is not just about keeping accurate financial records. Maintaining trust, making informed decisions, ensuring compliance, and ultimately safeguarding the future of … Read more

Let's delve into the intricacies of prepayments, exploring their definition, practical applications, and the strategic insights they offer. Understanding the difference between cash basis and accrual basis accounting is fundamental for business owners and accounting departments. We’ll explore the key differences between the two methods as well as the advantages and disadvantages of both methods. … Read more

When you purchase an annuity, the insurance company takes a lump sum of money upfront and invests it, minus the fees it charges. The investor, in return, will receive an agreed amount of money at regular intervals over a period of time. The time value of money is also related to the concepts of inflation … Read more