Feel free to edit it as necessary to make it your own, based on the needs of your organization. Then implement it as part of your standard month-end accounting procedures. Sum up the preliminary ending balances from the last step to make a trial balance. A trial balance is a report nonprofit bookkeeping services that adds up all the credits and debits in your business. You want your total credits to be the same number as your total debits—if they aren’t, go back and check your work. If the credits and debits are equal, your accounts balance, and you’re ready to go to the next step.
For example, you would regularly close the month and run reports by the fifth of the following month. Like any business process, if your month-end close is built on a shaky foundation, there will be problems. Incorrect recording of data, expenses not captured, or captured expenses coded incorrectly are potential problems from a poorly designed process.
Nonprofit vs for-profit accounting
By implementing a proper and regular monthly close you will help to ensure the data you are using each month to make management and leadership decisions is both accurate and timely. Much like a scale, financial data is a barometer of performance for financial health. It tells you what your organization has done right, where it has gone wrong, and where it needs to improve. To maximize its effectiveness, it must be reviewed regularly and consistently so decisions can be adjusted as needed along the way. The nonprofit also plans to include 40 crisis stabilization beds in the new facility for people in need of emergency treatment for mental health or substance use problems. It will operate in partnership with Tuerk House’s crisis stabilization center in West Baltimore, which it started with the Baltimore City Health Department in 2018.
Click the Download Now button to get access to our step-by-step checklist to help your organization close your books and fly through audits. The entry should contain information such as the donor’s name, the amount of money, and the date. If you want to become a bookkeeper for a nonprofit, try looking at internships that could help you learn more about the processes. You may want to visit the National Council of Nonprofits to learn more. An annual budget plan represents a roadmap for nonprofits and ensures the organization is on the right track.