What Does a Nonprofit Bookkeeper Do?
We want to support your nonprofit to reach the mountaintops in being a blessing to others. It’s important to outsource where you need to. We want to help you to know what to look for when seeking out a bookkeeper and financial consulting.
What to expect from a bookkeeper? On a very basic level a nonprofit bookkeeper’s responsibilities is to record transactions, reconcile bank accounts, provide financial statements, assist with 1099 preparation and provide advice and counsel as needed.
It’s important to choose a good bookkeeper so they can be an asset to your business - this is a relationship that matters. When interviewing bookkeepers, find out if they will be accessible and get your expectations out in the open to make sure you’re on the same page. This will be a relationship with two-way communication from both of you.
Ultimately, a nonprofit bookkeeper should help your organization stay compliant with IRS requirements, and create accessible financial records, and clear and accurate financial statements.
No one knows your nonprofit better than you do, which is why you should hire a professional bookkeeper to get your books in order so you can focus on being a leader in your organization.
Bookkeeping focuses on the following roles:
Recording data: Bookkeeping involves entering data into your nonprofit’s bookkeeping solution (whether that be a spreadsheet or a designated bookkeeping software). This data includes donations, expenses, and any other transactions your nonprofit makes.
Organizing records: Not only does bookkeeping ensure all your data is recorded, but it also helps keep your financial data organized by categorizing each donation and expense.
Producing financial statements: Budgets are helpful for internal financial management, but bookkeeping can also give you the information you need to create financial statements for an overview of your financial activity. If you choose to outsource your nonprofit’s bookkeeping, a professional will create these statements for you.
Bookkeeping is the financial oversight process that’s necessary for operating your nonprofit daily, ensuring your nonprofit uses its revenue wisely and maintains its tax-exempt status.
Next, we can take that information and provide a detailed analysis of your finances. If you have your reports and you’re ready for financial consulting, HarQuin offers consulting options to meet your unique needs. Your consultant will analyze your nonprofit’s financial information from previous years and create a financial plan, while providing actionable next steps for budgeting. You will receive estimated future projections and we can help your nonprofit come up with a plan for better allocating funds.
Learn more here about HarQuin’s consulting options and get a free bookkeeping estimate here.