Management Tips » Accounting

Accounting for nonprofits involves an additional layer of processes compared to for-profit accounting. The IRS requires most tax-exempt organizations to submit annual reports known as a Form 990. If these forms are not completed correctly an organization is at risk of losing its tax-exempt status. Form 990 and its relatives require nonprofits to report information such as functional expenses, the organization’s sources of revenue, and salary and benefits information. Nonprofits hire accountants to do this work, and will use a single or double bookkeeping system depending on the size of the organization. Accounting is very specialized when it comes to paperwork on government grants.

Read more about accounting and why it is important to every nonprofit organization in the articles below.