Nonprofit Accounting Basics


Accounting for Uncertain Tax Positions: A Requirement for Nonprofit Financial Statements

FIN 48, Accounting for Uncertain Tax Positions (now codified as ASC 740-10) was made a requirement for any entity with financial statements prepared in accordance with generally accepted acc

Audit vs Review vs Compilation

A nonprofit organization can engage a Certified Public Accountant (CPA) to prepare its financial statements.  There are three levels of financial statement services offered by CPAs: Audits, Re

Best Practice: Federal Grant Compliance Program

A "best practice" is the most effective way to achieve the desired outcome applicable to most organizations.  Our goal is to develop a compliance program for federal grants applicable to nonpr

Common Disclosures

Some of the most common disclosures are:


The auditor will ask you to write confirmation letters to your banks, funders, lenders, and attorneys to confirm the amounts reflected in your records.  Confirmation letters are printed on you

FAS 116

What is FASB 116?

Statement of Financial Account Standards 116 (FASB116) is the primary guidance relating to the recording of contribution revenue by not-for-profit organizations (NFPs).

FAS 117

What is FASB 117?

Statement of Financial Accounting Standard 117 “Financial Statements of Not-for-Profit Organizations” (FASB117) is the primary guidance relating to the financial statement

Great New Resource for Federal Grantees

As part of its ongoing commitment to educated organizations that receive federal awards, the Governmental Audit Quality Center (GAQC), part of the American Institute of Certified Public Accountants

Have You Outgrown Your Financial Reporting System?

As your organization grows and becomes more sophisticated, your financial reporting needs to evolve as well.

Interepreting an Audit

After the audit is completed, the auditor will issue the organization an audit report. The audit report is addressed to the board of directors. The report includes:

Investments: Fair Value Disclosures

A common item on the financial statements of not-for-profit organizations (NPOs) is investments. These investments can often be the largest single line item on the financial statements.

Key Considerations for Audit/ Finance Committee Review for Form 990

With the transparency and public availability of the “new” Form 990, review of the Form 990 by audit or finance committees (and sometimes the entire governing body) has become a best practice adopt

New Financial Reporting Standards for Nonprofits

The Financial Accounting Standards Board (FASB) has issued Accounting Standard Update (ASU) 2016-14.  This ASU is intended to update, not overhaul, the current financial statement model to imp

Organizational Documents

Other Information

Post-Fieldwork Considerations for Audits

There are essentially three stages to every audit – planning/pre-fieldwork, fieldwork, and post-fieldwork/wrap-up.

Preparing for the Audit

To prepare for an audit, your organization will need to gather information for the auditor.

What is an Audit?

Periodically, nonprofit organizations will have to submit financial statements to show how they are doing financially.

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