Nonprofit Accounting Basics Series

The Nonprofit Accounting Basics series of the Greater Washington Society of CPAs offers an array of helpful resources and tools for nonprofits. Recommended resources:

• Policies: Outlines basic policies for financial accountability and management.
• The Budgeting Process: Explains how to build a budget.
• Systems and Procedures: Outlines key principles and procedure tips for financial management.
• Stewardship and Accountability: Explains key elements of a good financial management system that enables the board and management to fulfill their fiduciary responsibilities for the organization.
• Internal Reports: Discusses the types of financial reports necessary for understanding the finances of your organization.
• Reconciling Accounts: Outlines how to balance your organization’s checkbook.
• Petty cash: Defines petty and describes procedures for tracking it.
• Credit Card Transactions: Lists options for processing online credit card transactions (i.e. contributions, fees for service) and briefly covers procedures and policies on how to protect the finances of the organization when credit cards are used.
• Generally Accepted Accounting Principles: Outlines the means of creating financial reports preferred by certified public accountants. Following these principles will lead to audits that meet the standards of your auditors. 
• Internal Controls: Covers financial processes and procedures that enable an organization to safeguard its assets.   
• Internal Controls for Small Organizations: Specific to how an organization with a smaller staff would implement important financial controls.    
• Inventory: Describes how inventory is recorded on the books for those organizations that have items it creates or purchases, and then sells to the public.
• Line of credit: Brief paragraph and related journal entries related to opening a line of credit.
• Lockboxes: Describes the use of lockboxes (generally when large volume of checks received by an organization).
• Outsourcing the Strategic Financial Function: Outlines the role of the Chief Financial Officer and reasons a nonprofit might outsource this function.
• Payroll: Covers how payroll is processed and recommends outsourcing this function to a payroll processing firm. 
• Should I use Accounting Software: Includes a link to several accounting software packages.
• Writing Checks: Outlines process and safeguards to protect the agency when it comes to writing checks.
• Depreciation Schedule Example: Simple blank worksheet, completed example and brief notes on calculating items that will be depreciated over time.  When you do your annual audit or financial review, there are some material things such as equipment, improvements, etc. the value of which reduces (depreciates) over time.  These depreciations must be itemized and tracked for financial reporting purposes.
• Capitalization Threshold Policy example: Sample policy for small and mid-size organizations.