Nonprofits
Fund accounting, grant tracking, and Form 990 preparation for Phoenix-area charities, churches, and foundations.
The Industry
Nonprofit accounting operates under different rules than for-profit businesses. Instead of tracking profit, you track mission. Instead of owners, you have donors, board members, and the public watching how you spend every dollar. The fundamental difference is fund accounting. When someone donates money for a specific program, that money has to be tracked separately and spent only on that program. Mixing restricted and unrestricted funds isn’t just sloppy bookkeeping. It’s a compliance violation that can damage your reputation and your ability to receive future grants.
The reporting requirements are substantial. Form 990 isn’t just a tax return. It’s a public document that donors, foundations, and watchdog organizations use to evaluate your organization. Your board needs financial statements they can actually understand to make informed decisions. Grantors need specific reporting showing how their funds were used. Each audience wants something different, and the underlying books have to support all of it.
Who This Covers
Who This Covers
Charities, churches, foundations, trade associations, community organizations, and social services agencies. Any tax-exempt organization in the Phoenix area that needs to track restricted funds, report to donors and grantors, and file Form 990.
What Makes It Complex
What Makes It Complex
Multiple funding sources with different restrictions and reporting requirements. Grants that reimburse expenses months after you spend the money. Board members who need clear financials without accounting jargon. Public transparency requirements that for-profit businesses never deal with. The constant need to demonstrate both mission impact and financial responsibility.
What We Handle
Fund accounting is the foundation. We set up your chart of accounts to track restricted and unrestricted funds separately. When a foundation gives you $50,000 for your youth program, those dollars get their own tracking from the day they arrive until the day they’re spent. Grant reporting becomes straightforward because the data is already organized correctly. No more scrambling to reconstruct how restricted funds were used when the grantor asks for a progress report.
Board reporting gets attention. Most nonprofit boards aren’t accountants. They need financial statements that tell a clear story without requiring translation. We build reports that show fund balances, program expenses, and cash position in a format board members can review and act on. Form 990 preparation happens throughout the year, not in a panic before the deadline. We track the information you’ll need so the filing process doesn’t become a months-long excavation of your records.
Fund Tracking and Grant Compliance
Fund Tracking and Grant Compliance
Restricted fund accounting that keeps donor and grantor money separate. Grant expense tracking showing exactly where those dollars went. Budget to actual reports by program or funding source. Cash flow visibility showing when grant reimbursements are expected versus when expenses are due.
Reporting and Compliance Support
Reporting and Compliance Support
Board-ready financial statements without accounting jargon. Form 990 preparation with clean underlying data. Functional expense allocation between program, administrative, and fundraising costs. Reports organized to support annual audits if your organization requires them.
What Goes Wrong
The most common failure is restricted fund tracking. A foundation sends $25,000 for a specific program. The money hits the general checking account and gets spent on whatever needs paying. When the grantor asks for a report, nobody can show where those specific dollars went. Sometimes the money was spent appropriately but the tracking didn’t happen. Sometimes it got spent on the wrong things entirely. Either way, you’re in a difficult conversation with a funder who trusted you.
Cash flow surprises hit nonprofits hard because the timing of revenue is unpredictable. Year-end giving creates a December spike followed by a January drought. Grant reimbursements arrive months after you’ve fronted the expenses. Operating reserves get depleted covering gaps, and suddenly the organization is in crisis mode. Board members see statements that don’t make sense because program expenses and restricted funds are lumped together. They can’t tell if the organization is healthy or struggling.
Fund and Grant Problems
Fund and Grant Problems
Restricted funds spent on general operations because tracking wasn’t in place. Grant reports that require reconstructing months of transactions. Compliance issues that jeopardize future funding. Auditors finding material weaknesses in restricted fund management that end up in your public filings.
Reporting and Cash Flow Issues
Reporting and Cash Flow Issues
Board financials that confuse rather than inform, leading to poor decisions or no decisions at all. Form 990 preparation that becomes a months-long project pulling staff away from mission work. Cash flow crunches between major giving periods or grant cycles. Program expense ratios that look worse than reality because expenses weren’t allocated properly.
What Changes
Restricted funds get tracked from day one. When a grant comes in, it has its own code in the system. Every expense against that grant gets tagged properly. Reporting to funders becomes a quick export, not a research project. Your compliance position is solid because the data proves exactly where restricted dollars went. Foundations and major donors see an organization that manages their money responsibly, which builds the trust that leads to continued support.
Board meetings improve because the financials tell a clear story. Members can see unrestricted cash position, restricted fund balances, program expenses versus budget, and cash flow projections. They make decisions based on real data instead of asking clarifying questions for half the meeting. Form 990 prep becomes routine because the underlying records are organized throughout the year. If your organization requires an audit, the preparation is straightforward because the books have been maintained properly all along.
Clean Fund Management
Clean Fund Management
Every restricted dollar tracked from receipt to expenditure. Grant reporting that takes hours instead of weeks. Compliance confidence when funders ask questions. Audit readiness with documentation supporting every restricted fund transaction.
Clear Reporting and Planning
Clear Reporting and Planning
Board financials that tell the story without an interpreter. Cash flow visibility accounting for seasonal giving patterns and grant timing. Form 990 preparation with clean data ready before the deadline. Functional expense allocation showing true program, administrative, and fundraising ratios.
Full-Service Bookkeeping for Greater Phoenix
The Next Step:
A Quick Conversation
Tell us about your situation. We'll listen, ask a few questions, and give you a clear price to handle the work.