We use cookies to improve your experience on our platform. By clicking “Accept all cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage and assist in our marketing efforts.
Cookies required for basic website functionality.
Cookies used to deliver content most relevant to you and your needs.
Cookies used to deliver content most relevant to you and your needs.
Cookies that help understand the performance of the website, how users interact with it and to identify bugs.
How is Zeffy free?
How is Zeffy free?
Zeffy relies entirely on optional contributions from donors. At the payment confirmation step - we ask donors to leave an optional contribution to Zeffy.
Nonprofit organizations face unique challenges when it comes to financial management. You must balance your mission-driven goals with strict financial regulations and reporting requirements. Proper bookkeeping is crucial to maintaining your tax-exempt status, securing funding, and demonstrating transparency to donors and stakeholders.
Nonprofits often face challenges in financial management due to resource constraints and the need for specialized expertise. This is where professional bookkeeping services can provide valuable support and expertise.
In this article, we'll explore seven leading bookkeeping services tailored for nonprofits. By the end of this article, you'll have a clear understanding of what to look for in a nonprofit bookkeeping service and how to choose the right one for your organization.
Top 7 professional bookkeeping service providers for nonprofits
Nonprofit bookkeeping is the process of entering, classifying, and recording financial data. This systematic approach creates clear and accurate financial records, which are essential for several reasons:
Ensuring compliance with Generally Accepted Accounting Principles (GAAP)
Maintaining tax-exempt status with the IRS
Providing transparency to donors and stakeholders
Supporting informed decision-making within the organization
Beyond compliance, effective bookkeeping lays the groundwork for accurate nonprofit accounting and provides accountants with a solid foundation for in-depth financial analysis. They can decide how to use funds wisely and make informed financial decisions.
1. Jitasa
Jitasa is a bookkeeping and accounting firm for nonprofits, churches, and congregations. The company's bookkeeping services focus on data entry, expense tracking, and revenue allocation. It also assists with bank statement reconciliation at month-end to ensure IRS compliance.
Why should you work with Jitasa?
A pricing model based on your needs ensures you pay only for essential services
Fixed monthly fees help you know what to expect each month and eliminate surprise costs
Assigns a dedicated team to each client, ensuring access to personalized service
Puts in place specific control measures as an internal safeguard against errors and fraud
2. Supporting Strategies
Supporting Strategies provides various bookkeeping services through a modular approach. Their offerings include weekly cash flow management, forecasting, budget analysis, and additional bookkeeping functions.
The company structures its services into six different monthly packages, allowing organizations to select specific services based on their needs, which can be adjusted as those needs evolve.
Why should you work with Supporting Strategies?
Access to real-time financial data powered by the latest cloud-based technology
Employs top-tier bookkeeping nonprofit accounting solutions to optimize finances
A dedicated team of experienced finance professionals is available whenever you need support
Efficient digital onboarding for seamless online financial management
3. Devoted Bookkeeping
Devoted Bookkeeping specializes in nonprofit financial management and develops individualized accounting plans based on each organization's specific requirements.
Their services encompass several key financial tasks, including bank statement reconciliation, cash flow management, and budgeting and forecasting. Devoted Bookkeeping employs a comprehensive approach to address various aspects of an organization's financial operations.
Why should you work with Devoted Bookkeeping?
Receive flexible and scalable support as your business grows
Acts as a trusted bookkeeping guide with ongoing support and clear communication
Maintains proper financial statements to help with filing tax returns
4. Foundation Group
Foundation Group has over 25 years of experience working exclusively with 501(c)(3) and tax-exempt organizations. Their services cover everything from initial nonprofit setup to monthly bookkeeping and year-end financials.
As an Elite QuickBooks ProAdvisor Firm, they offer QuickBooks cloud accounting software at a discounted price, enhancing your financial management capabilities. Discounts may be available depending on specific promotions or partnerships.
Why should you work with Foundation Group?
All bookkeeping staff are US-based, QuickBooks ProAdvisor certified, and experts in nonprofit accounting
Access to a dedicated bookkeeper whose expertise best matches your financial needs
Expert advice and guidance to keep your financial operations running smoothly
Timely bookkeeping in full compliance with state and federal regulations
5. BooksTime
BooksTime specializes in bookkeeping, fund accounting, and reporting for grants and trusts. Services include one-time projects, such as catching-up or cleaning-up financial records, as well as ongoing financial maintenance, including recording and categorizing transactions, reconciling accounts, and managing month-end and year-end closings.
BooksTime provides flexible support for both short-term needs and long-term financial management for nonprofits.
Why should you work with BooksTime?
Pairs you with a bookkeeping specialist with experience as CFO or treasurer of nonprofits
Tailored solutions addressing your specific organization's needs
Work directly with your CPA to prepare documents and ensure compliance with tax laws
Provides a concise view of your finances with accurate, easy-to-understand reports each month
6. Indinero
Indinero offers comprehensive online bookkeeping services tailored for nonprofits. Their approach focuses on detailed record-keeping, streamlined reporting, and real-time financial data access.
Indinero also assists with essential financial tasks such as bill payments and payroll processing, allowing nonprofit staff to focus on their core mission-related activities.
Why should you work with Indinero?
Support with setting and tracking financial goals
Expense categorization to make tax filing easier
Stays up-to-date with changing regulations to keep your books compliant
Access your documents anytime, anywhere with Indinero cloud-based storage solution
7. The Charity CFO
The Charity CFO offers accurate bookkeeping, transparent accounting, and on-demand financial guidance.
You will be assigned a dedicated accounting associate who will learn your organization inside and out to execute day-to-day bookkeeping. You can also rely on them to handle invoices, account reconciliations, and basic ad hoc reporting.
Why should you work with The Charity CFO?
Get professional and audit-ready books and reports every month
CPA support and personalized CFO-level guidance in nonprofit accounting
Guidance for annual budgeting process and compliance issues
Get advice on management practices, growth strategies, and more
How to choose the best bookkeeping services for your nonprofit?
1. Look for nonprofit expertise
You need to choose a bookkeeping service provider that specializes in nonprofits and has extensive experience with nonprofit-specific financial requirements, such as preparing Form 990. A provider who serves the nonprofit sector can offer useful tips to optimize your financial operations.
2. Check service offerings
Look for a service that offers more than basic bookkeeping and provides nonprofit accounting services, such as:
Financial reporting
Payroll management
Advisory services
This approach provides deeper insights into your organization’s financial health and ensures you have access to all the essential services without overpaying for unnecessary solutions.
3. Examine qualifications and reputation
Verify the bookkeeping service's credentials and look for certifications such as:
Certified Public Accountant (CPA)
Certified Bookkeeper (CB)
QuickBooks ProAdvisor
These ensure that the bookkeeper has proper training and follows high ethical standards. Also, research how well-regarded they are in the field by checking online reviews and success stories.
4. Consider technology integration
Technology is key for accurate and efficient bookkeeping and financial reporting. Look for a service that works with advanced accounting solutions and cloud systems, as these tools can make work faster and more accurate. By choosing a tech-savvy bookkeeper, you get access to more precise financial services.
5. Assess pricing and scalability
Nonprofits have tight budgets, and they usually can’t afford to buy a service with features they won’t use. Look for providers offering customizable packages so that you pay only for services you need, avoiding unnecessary costs.
As your organization grows, your bookkeeping needs may change. Ensure the provider allows you to add-on services as your needs evolve.
Final words on bookkeeping services for nonprofits
Choosing the right bookkeeping service is crucial for nonprofit success as it directly impacts financial transparency, compliance, and operational efficiency. Look for providers with nonprofit expertise, comprehensive services, and strong credentials.
Consider technology integration and scalable pricing to meet your organization's evolving needs. A skilled bookkeeper can transform your financial management, ensuring compliance and providing insights for informed decision-making.
Effective financial management extends beyond bookkeeping as it involves optimizing every aspect of your finances, including fundraising. To complement your bookkeeping efforts, explore cost-effective fundraising solutions.
Zeffy's 100% free fundraising platform can help maximize your funds, allowing you to allocate more resources to your mission. Your nonprofit can achieve greater impact and sustainability with the right financial tools and practices.
Nonprofit bookkeeping and accounting serve different roles. Bookkeeping deals with daily financial tasks, records donations, expenses, and grant allocations. This work focuses on data entry and keeping finances up to date.
Accounting looks at the big picture of an organization's finances. Accountants analyze and interpret the data bookkeepers record and then prepare reports, conduct audits, and offer financial advice. Bookkeeping is about tracking transactions, while accounting is about understanding what those transactions mean for the organization.
A bookkeeper for a nonprofit is responsible for recording and managing the organization's financial transactions. Some of their major duties include:
Keeping financial records accurate and up to date
Assisting with budgeting and cash flow monitoring
Preparing financial statements
Ensuring compliance with financial regulations
Maintaining accounts payable and receivable
The best accounting method for a nonprofit organization is the accrual accounting method. It records income when earned and expenses when incurred, regardless of when cash is received or paid. This approach offers a more realistic view of your financial position.
Accrual accounting even complies with GAAP, which is required for nonprofits seeking grants and government funding.
The only 100% free fundraising platform for nonprofits
Oops! Something went wrong while submitting the form.
Keep reading :
Nonprofit guides
Nonprofit Bookkeeping Essentials: A Complete Guide [2024]
Explore these essential steps to nonprofit bookkeeping, from tracking donations to producing clear financial statements. Stay compliant with our 2024 guide.
