Nonprofit Accounting Services
Fund accounting, Form 990 preparation, grant tracking, and compliance bookkeeping for Louisiana and California 501(c)(3) organizations.
Fund Accounting and Compliance for Louisiana and California Nonprofits
Nonprofit accounting is fundamentally different from for-profit bookkeeping. Revenue is classified by funding source and restriction level. Expenses must be tracked by program, management, and fundraising function. The goal isn't profit — it's stewardship accountability to donors, the IRS, and the public. Most for-profit bookkeepers don't understand this distinction, and the result is nonprofits with books that don't tell donors or boards what they need to know.
ASU provides complete nonprofit accounting services: fund accounting with proper revenue and expense classification, QuickBooks setup designed for nonprofit organizations, Form 990 preparation (and 990-EZ for smaller organizations), state charitable registration compliance, and grant tracking for restricted funding.
One area where nonprofits frequently have compliance problems is payroll and contractor classification. The IRS looks closely at how nonprofits classify and compensate their workforce. ASU handles this correctly from the start — proper W-2s, 1099-NECs, and all required employer tax filings.
ASU serves both startup nonprofits (including organizations going through the 501(c)(3) application process) and established organizations that have outgrown their current accounting process. Call (504) 838-7140 to discuss your organization's needs.
Nonprofit Accounting Includes
How It Works
Organization Assessment
We review your current accounting structure, funding sources, and compliance history to identify gaps and design a proper nonprofit accounting system for your organization.
Fund Accounting Setup
We configure QuickBooks with a nonprofit chart of accounts, fund classifications, program expense tracking, and a reporting structure that satisfies your board and your donors.
Ongoing Compliance
Monthly bookkeeping, payroll, grant reporting, and annual Form 990 preparation — all handled so your organization stays in good standing with the IRS and state.
Frequently Asked Questions
How is nonprofit accounting different from regular small business bookkeeping?
Nonprofit accounting uses fund accounting — tracking revenues and expenses by funding source and restriction level — rather than profit-focused bookkeeping. Revenue is classified as restricted 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.
Does ASU prepare Form 990 for nonprofits?
Yes. ASU prepares Form 990, Form 990-EZ (for smaller organizations), and Form 990-N (the e-Postcard for very small organizations). We prepare all required schedules and file electronically with the IRS. Late or incorrect Form 990 filings are a primary compliance risk for nonprofits — we ensure yours are done right and on time.
What is fund accounting and why do nonprofits need it?
Fund accounting tracks revenues and expenses by fund — restricted funds (donor-designated for specific purposes), temporarily restricted funds, and unrestricted operating funds. It provides the accountability to donors that unrestricted for-profit bookkeeping can't. Proper fund accounting is required to demonstrate stewardship to donors, boards, and the IRS.
Can ASU help a new 501(c)(3) get its accounting properly set up?
Yes. We help new nonprofits with QuickBooks for nonprofits setup, chart of accounts designed for fund accounting, payroll structure for staff, board financial reporting design, and first-year Form 990 preparation. Starting correctly prevents expensive corrections later.
How does ASU handle restricted grant accounting for nonprofits?
We set up separate tracking in QuickBooks for each restricted grant, monitor budget vs. actual expenditures against grant requirements, and prepare the periodic compliance reports many funders require. At grant closeout, we prepare the final financial report.
Does ASU help Louisiana nonprofits with state charitable registration?
Yes. Louisiana requires charitable organizations soliciting in the state to register with the Louisiana Attorney General and file annual renewals. We help with the financial reporting components of registration and renewal compliance.
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 tax-exempt status due to three consecutive years of missed filings, we can help with the IRS reinstatement process.
How does payroll work for nonprofit employees?
Nonprofit payroll follows the same federal requirements as for-profit businesses: employer FICA, FUTA, state unemployment, W-2 filing. We also handle specific situations common in nonprofits: housing allowances for clergy and religious workers, volunteer stipend documentation, and correct classification of board members vs. employees.