10 Steps on Hiring Your Nonprofit Organization’s First Employee

By CarolCarrie / July 23, 2018 /
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A reader asked for advice on hiring her organization’s first employee. First let us say congratulations for reaching this milestone! Your first employee, while exciting, also opens up a whole new world of responsibilities, risk management and administration. What are the critical steps? Where do you begin? We offer a punch list of things you…

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Main Sources of Nonprofit Income

By CarolCarrie / July 16, 2018 /
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In last week’s post, we saw that major sources of nonprofit income for public charities include (from largest to smallest): Fees from private sources (also called program service fees) Government grants and contracts Private contributions Investment income Other sources The above “big picture” is from Forms 990 and 990-EZ filed with the IRS. These income…

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Nonprofit Income Streams: An Introduction

By CarolCarrie / July 9, 2018 /
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Over $1.85 trillion dollars of income was reported by public charities filing Form 990 or 990-EZ, based on 2016 IRS data compiled by The Urban Institute, National Center for Charitable Statistics.  Where does all that money come from? Specifically we are focusing on income of 501(c)(3) public charities. For comparison’s sake, here are common types…

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Biggest Bookkeeping Secret

By CarolCarrie / July 2, 2018 /
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Do you know the biggest secret to keeping good books?  Well, we’re going to let you in on it. It’s managing the balance sheet. Many of the problems we’ve seen with bookkeeping can be traced back to not keeping an accurate balance sheet. We see many people focus only on the profit and loss report, and…

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Why Your Bank Reconciliation Is Falling Short

By CarolCarrie / June 25, 2018 /
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Many clients that come to us with messy books reconcile their operating bank accounts every month. Yep, the bookkeeper checks off the cleared items, gets to zero difference in the QuickBooks reconciliation window and happily clicks to Finish the reconciliation. If you are reconciling each month, why can you still have so many problems? The…

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Credit Card Reconciliation Tips in QuickBooks

By CarolCarrie / June 18, 2018 /
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Is the credit card liability on your organization’s balance sheet accurate? Credit card accounts should be reconciled each month just like your bank account. Options for Reconcile Date You can reconcile to the credit card statement, or you can reconcile to the balance at month end per the history in online banking. If you use…

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Credit Card Fraud – An Easy Way to Steal Organization Funds

By CarolCarrie / June 11, 2018 /
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Over $50,000 gone was the latest estimate. Sadly this is a true story. The administrative assistant, a trusted employee, had been using her organization credit card to pay for personal expenses. She carried out the fraud over about a year, though no one will probably ever know exactly when the thefts started or exactly how…

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A Right Way and A Wrong Way to Enter Credit Card Purchases

By CarolCarrie / June 4, 2018 /
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Rarely do we find credit card activity entered properly in QuickBooks. Usually we see credit card purchases entered into QuickBooks when the card is paid. The credit card payment is painstakingly split out and manually entered line-by-line following the purchase detail on the credit card statement. Problems with This Approach This approach creates several problems:…

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New Take on Net Assets

By CarolCarrie / May 21, 2018 /
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We keep getting “the question.” Hint — it’s not “Would you be our treasurer?” Though we get that one a lot, too. No, the question we refer to is when our client points to the net assets section of the organization’s balance sheet and asks, “Is that the money we have to spend?” It’s a…

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New IRS Tax Exempt Organization Search

By CarolCarrie / May 14, 2018 /
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Earlier this month (May 2018) the IRS replaced their online EO Select Check tool with a new searchable database called Tax Exempt Organization Search. More Powerful Tool The prior EO Select Check tool, available since 2012, provided users with information about an organization’s tax-exempt status. The new Tax Exempt Organization Search tool provides much more…

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