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

Auditor’s Reports Will Soon Look Different

Auditor’s reports will look different for audits of financial statements for periods ending on or after December 15, 2020.


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

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:

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

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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