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

Front Cover
John Wiley & Sons, Jun 27, 2012 - Business & Economics - 264 pages

BOOKKEEPING FOR NONPROFITS

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.

Written by Murray Dropkin and Jim Halpin, Bookkeeping for Nonprofits is a step-by-step introduction to keeping accounting records, which form the foundation for a nonprofit organization's financial reports, tax returns, budgets, cash forecasts, and grant proposals. Using this volume as a guide, nonprofit leaders and staff will be able to set up books with or without accounting software and ensure that the records meet the needs of their organization. Bookkeeping for Nonprofits is a comprehensive resource that

  • Discusses how transactions provide day-to-day information for tracking cash balances and cash requirements
  • Shows how transactions provide information to management and the board of directors for budgeting and other essential tasks
  • Explains basic bookkeeping concepts, such as the accounting equation, the chart of accounts, and income and expense tracking
  • Guides readers through the nuts and bolts of recording a transaction
  • Provides an overview of alternative recordkeeping methodologies and how to choose among them

Designed to be easy to use, the book is filled with illustrations and checklists.

"Bookkeeping for Nonprofits is the remarkable new guide for a new generation of accounting challenges bookkeepers face every day."
—Frances Hesselbein, chairman and founding president, Leader to Leader Institute

"Bookkeeping for Nonprofits provides a rare combination of consummate professionalism and clear, accessible writing. Underlying the wealth of technical information lies a great deal of wisdom. The authors have found a way to translate their enormous, on-the-ground experience into usable, actionable policies, procedures, and practices. It is a book that gives all you need to create a fiscally responsible agency with the bonus of helping you become a better manager and a wiser person."
—Peter Block, business consultant and author of Flawless Consulting and The Empowered Manager

"Bookkeeping for Nonprofits provides an excellent understanding of the practical application of bookkeeping in the real work environment."
—Ron Werthman, vice president, finance/treasurer and CFO, Johns Hopkins Health System, The Johns Hopkins Hospital

"This is a wonderful book that every bookkeeper in a nonprofit organization should have."
—Eusebio David, fiscal director, Federation of Multicultural Programs, Inc.

 

What people are saying - Write a review

LibraryThing Review

User Review  - KirkLowery - LibraryThing

This book provides an introduction to the arcane world of non-profit bookkeeping (well, any accounting subject is arcane!). Since I am not a professional accountant, I found the book to be very ... Read full review

Contents

Part One
CHAPTER 1
Users of the Information
The Nonprofit World
Summary
CHAPTER 2
Types of Accounts
The Accounting Equation
Summary
CHAPTER 9
Recurring Entries
Materiality
Approvals
CHAPTER 10
General Ledger Posting
Control Accounts

Confusing Terminology
Summary
CHAPTER 3
Asset Accounts
Liability Accounts
Account Numbering
Summary
Part Two
CHAPTER 4
Receivable Tracking
Income from the Sale of Inventory
Income Support from Contributions
Income from Grants
Interest Dividend and Royalty Income
Income from Membership Dues
Income from Special Events
Real Estate and Rental Income
Income from the Sale of Assets
DebtFinanced Revenue
Summary
CHAPTER 5
Form of Receipts
Controlling the Cash Receipt Process
Collections
Summary
CHAPTER 6
Payroll Bank Account
Direct Deposit
Human Resources
The Payroll Process
Expense Reimbursement
Statutory Deductions
Elective Deductions
Payroll Tax Reporting
Highly Compensated Employees
Qualified Transportation Fringe Benefit
CHAPTER 7
Purchase Order System
Unprocessed Vendor Invoice File
Invoice Posting
Vendor Credits
Other Issues
Summary
CHAPTER 8
Manually Written Checks
Void Checks
Bank Reconciliation
Prepaid Expenses
Fixed Assets Land Buildings and Equipment
Marketable Securities
Notes Payable
Summary
CHAPTER 11
Allocation Methods
Indirect Cost Allocation
Summary
Part Three
CHAPTER 12
Financial Statement Providing the Snapshot View
Working Capital
Financial Statements Providing the History View
Other Financial Statements
CHAPTER 13
Overview of Budgeting
Budgeting Strategies
Budgeting Goals Guidelines Policies and Procedures
Summary
CHAPTER 14
Cash Flow Forecasting Based on the Operating Budget
Cash Flow Reporting Monitoring and Analysis
Summary
CHAPTER 15
CommunicationCollaboration
Continuous Training
Written Financial Policies and Procedures
Effective Communication
Compliance Requirements of Grants
Annual Audit Tax Returns and Information Filings
Paper Files
Record Retention Rules
Summary
Manual Ledgers
Software and Hardware
Concurrent Users
Wide Area Network
OffSite Data Depository
The Cost of Inaction
System Backup
Software Audit
Summary
Overview
Action Steps
Core Texts
Copyright

Other editions - View all

Common terms and phrases

About the author (2012)

THE AUTHORS

Murray Dropkin, C.P.A., M.B.A., is president of CMS Systems, Inc., a consulting firm that specializes in improving the operational and financial operations of nonprofit and for-profit organizations. He has published extensively in the field of nonprofit accounting and is coauthor of The Budget-Building Book for Nonprofits and The Cash Flow Management Book for Nonprofits, both from Jossey-Bass. He co-edits Nonprofit Report, a monthly newsletter on nonprofit accounting, taxation, and management. He is coauthor of the three-volume Guide to Audits of Nonprofit Organizations and frequently speaks at professional meetings and consults around the country.

James Halpin, C.P.A., M.S., is a software developer, systems consultant, and accountant specializing in cost accounting concepts. He has more than thirty years of experience in accounting, auditing, taxation, management consulting, software development, and computer consulting. He co-edits the monthly Nonprofit Report newsletter.

Bibliographic information