Accounting for Nonprofit Organizations
Fund accounting, Form 990 preparation, grant tracking, and compliance bookkeeping for Louisiana and California 501(c)(3) organizations.
Nonprofits answer to a higher standard of financial accountability than most businesses. Your donors, board, and the IRS all expect accurate, transparent financial reporting that demonstrates responsible stewardship of every dollar. Fund accounting — tracking revenues and expenses by funding source and restriction level — is the foundation of that accountability, and it requires specialized expertise that most for-profit bookkeepers simply don't have.
ASU provides complete nonprofit accounting services for Louisiana and California 501(c)(3) organizations. We handle fund accounting in QuickBooks, monthly financial reporting for your board, grant tracking and compliance reporting for funders, and annual Form 990 preparation. We serve both small community nonprofits and larger established organizations that have outgrown their current accounting process.
“Your donors trust you with their money. Your books need to prove you’re using it exactly the way you said you would.
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Nonprofit Accounting Services
Fund accounting, compliance, and Form 990 preparation for Louisiana and California nonprofit organizations.
Fund Accounting & Bookkeeping
- ✓ Restricted vs. unrestricted fund tracking
- ✓ Revenue by funding source
- ✓ Program expense allocation
- ✓ Board financial reporting
- ✓ Monthly financial statements
Grant Management
- ✓ Grant income tracking by fund
- ✓ Restricted fund compliance
- ✓ Funder reporting packages
- ✓ Budget vs. actual by grant
- ✓ Grant closeout documentation
Tax & Compliance
- ✓ Form 990 & 990-EZ preparation
- ✓ State charitable registration
- ✓ Payroll & contractor compliance
- ✓ Unrelated business income (UBIT)
- ✓ IRS tax-exempt status maintenance
ASU Guarantee
If we ever make an error on your taxes, we pay ALL penalties and interest.
Nonprofit Accounting — Frequently Asked Questions
How is nonprofit accounting different from regular business bookkeeping?
Nonprofits use fund accounting — tracking revenues and expenses by funding source and restriction level rather than by profit motive. Revenue is classified as restricted (donor-designated for specific purposes) or unrestricted. Expenses are allocated across program services, management, and fundraising. The reporting goal is stewardship accountability to donors and the IRS, not profit measurement.
What is fund accounting and why do nonprofits need it?
Fund accounting tracks revenues and expenses by fund: restricted funds with donor designations, temporarily restricted funds, and unrestricted operating funds. It's required to provide the donor accountability and IRS compliance reporting that Form 990 demands. General bookkeeping software configured for for-profit businesses won't do this correctly without proper setup.
Does ASU prepare Form 990 for nonprofits?
Yes. ASU prepares Form 990 (for organizations with gross receipts of $200,000+ or assets of $500,000+), Form 990-EZ (for smaller organizations), and Form 990-N (the e-Postcard for organizations with gross receipts under $50,000). All required schedules are included. We file electronically and retain copies for your records.
How does ASU handle restricted grant accounting for nonprofits?
We set up separate fund tracking in QuickBooks for each restricted grant, monitor budget vs. actual spending against grant requirements monthly, and prepare the interim and final financial reports most funders require. Proper restricted fund accounting is what allows you to demonstrate to funders that their money was used as intended.
Can ASU help a new 501(c)(3) get its accounting properly set up?
Yes. New nonprofit setup includes QuickBooks configured for fund accounting, chart of accounts designed for nonprofit reporting, payroll structure for staff, board financial reporting design, state charitable registration assistance, and first-year Form 990 preparation. Starting correctly prevents expensive restructuring later.
Does ASU help Louisiana nonprofits with state charitable registration?
Yes. Louisiana nonprofits soliciting contributions in the state must register with the Louisiana Attorney General's office and file annual renewals. ASU handles the financial reporting components of these filings and keeps track of renewal deadlines.
Can ASU help a nonprofit that has fallen behind on Form 990 filings?
Yes. We prepare back Form 990s for organizations that missed prior-year filings. For organizations that have lost their 501(c)(3) status due to three consecutive years of missed filings, we can assist with the IRS Voluntary Compliance Program for reinstatement.
How does payroll work for nonprofit employees?
Nonprofit payroll follows the same federal requirements as for-profit businesses: employer FICA, FUTA, state unemployment tax, and W-2 filing. ASU also handles specific nonprofit situations: housing allowances for clergy and ministers, volunteer stipend documentation, and correct classification of board members (never employees) versus program staff.