Stress-Free Accounting for Non-Profit Organizations
Managing the financial complexities of a nonprofit organization requires specialized expertise that goes far beyond basic bookkeeping. At ClarkHirth CPAs, we understand the unique challenges nonprofits face, from grant compliance to donor stewardship and everything in between. Whether you're a small community organization or a large nonprofit with multiple programs, our nonprofit accounting services are designed to keep your organization compliant, financially healthy, and mission-focused.
Ready to streamline your nonprofit's financial operations? Contact us at (860) 904-4436 to discuss how we can support your organization's success.
Our Comprehensive Nonprofit Accounting Services
Financial Statement Assurance
We provide independent review and compilation services that give your board, donors, and stakeholders confidence in your financial reporting while ensuring compliance with nonprofit accounting standards and regulatory requirements.
Tax Preparation and Filing
Our team handles Form 990 preparation, state registrations, and all required nonprofit tax filings, ensuring your organization maintains its tax-exempt status while maximizing available deductions and credits.
Financial Statement
Assurance for Nonprofits
Transparency builds trust, and trust builds stronger donor relationships. When your stakeholders can rely on independently reviewed financial statements, they're more likely to increase their support and engagement with your mission.
Our financial statement assurance services go beyond basic compliance. We work closely with your team to ensure your financial statements tell the complete story of your organization's impact and stewardship. From proper fund accounting to restricted asset tracking, we make sure every dollar is accounted for and properly reported.
Many nonprofits discover that
professional financial statement preparation
actually saves them time and money in the long run. When your financial statements are prepared correctly from the start, you avoid costly corrections, maintain donor confidence, and position your organization for growth opportunities like major grants or capital campaigns.
Nonprofit Tax
Preparation and Filing
The IRS Form 990 isn't just a filing requirement – it's a public document that shapes how potential donors, grantmakers, and the community view your organization. Getting it right matters, and getting it wrong can have serious consequences for your tax-exempt status.
Our approach to nonprofit tax preparation starts with understanding your organization's unique activities and funding sources. We ensure that your Form 990 accurately reflects your mission, programs, and financial stewardship while highlighting the positive impact your organization makes in the community.
Beyond the annual filing, we help you maintain proper documentation throughout the year, making tax season smoother and less stressful. Our team stays current on changing nonprofit tax regulations, so you don't have to worry about missing important updates that could affect your organization.
Compliance and Regulatory Support
Nonprofit compliance is complex, involving federal tax laws, state charity regulations, and various reporting requirements that change regularly. One missed deadline or incorrect filing can jeopardize your organization's standing with regulators and donors alike.
We provide ongoing compliance support that keeps your organization in good standing with all relevant authorities. From annual state charity registrations to specialized reporting requirements for certain types of grants, we handle the details so you can focus on advancing your mission.
Our compliance services also include guidance on governance best practices, conflict of interest policies, and board financial oversight responsibilities. When your organization operates with strong compliance frameworks, you're better positioned to attract major donors and qualify for competitive grant opportunities.
Bookkeeping and Financial Management
Accurate financial records are the foundation of everything else your nonprofit does. Without reliable bookkeeping, you can't prepare meaningful financial statements, file accurate tax returns, or provide donors with the transparency they expect.
Our bookkeeping services are specifically designed for nonprofits, incorporating fund accounting principles that track restricted and unrestricted funds separately. We help you implement systems that provide real-time visibility into your financial position while supporting grant reporting requirements.
Many nonprofit leaders are surprised to learn how much time and stress professional bookkeeping services can save. When your financial records are maintained by professionals who understand nonprofit accounting, you spend less time on administrative tasks and more time on mission-critical activities.
Grant Management and Reporting
Grant funding often comes with complex reporting requirements that can overwhelm organizations without proper financial systems in place. Our grant management support ensures you can track grant expenditures accurately and provide funders with the detailed reporting they require.
We help you establish systems that track grant-specific expenses, monitor compliance with grant terms, and prepare required financial reports for funders. This level of financial management not only keeps you compliant with current grants but also positions you favorably for future funding opportunities.
Proper grant financial management also protects your organization from potential audit issues and ensures that grant funds are used exactly as intended, maintaining your reputation with funders and supporting long-term sustainability.
Board Financial Reporting
Your board members need clear, meaningful financial information to fulfill their fiduciary responsibilities and make informed decisions about your organization's direction. We prepare board-ready financial reports that highlight key performance indicators and financial trends.
Our board reporting goes beyond basic financial statements to include dashboard-style summaries that help board members quickly understand your organization's financial health. We can also provide training to help board members better understand nonprofit financial statements and their oversight responsibilities.
Regular, professional board reporting strengthens governance practices and helps board members feel confident in their oversight role. This confidence often translates into increased board engagement and support for organizational initiatives.
Why Work With ClarkHirth CPAs for Your Nonprofit
Experience matters when it comes to nonprofit accounting. Our team brings years of specialized nonprofit experience, including work with organizations ranging from small community groups to large multi-program nonprofits. We understand the unique challenges nonprofits face and have practical solutions that work.
Bill Clark started his career as an internal grants auditor, giving our firm deep insight into what funders and regulators expect from nonprofit financial management. This perspective helps us anticipate potential issues and implement preventive measures that protect your organization.
We're not just your accountants – we're your financial partners. We take time to understand your mission, programs, and goals so we can provide advice that supports your organization's growth and sustainability. Our clients often tell us that working with us feels like having an experienced CFO on their team.
FAQs About ClarkHirth CPA's
Nonprofit Accounting Services
How often should our nonprofit have its financial statements reviewed or audited?
The frequency depends on your organization's size, funding sources, and donor requirements. Many funders require annual independent reviews or audits, while smaller organizations might need them less frequently. We help you determine the right approach based on your specific situation, regulatory requirements, and stakeholder expectations while ensuring you meet all mandatory compliance obligations.
What's the difference between a review and an audit for nonprofits?
An audit provides the highest level of assurance and involves extensive testing of financial records and internal controls, while a review offers moderate assurance through analytical procedures and inquiries. Audits are more comprehensive and expensive but may be required by certain funders or state regulations. We help you understand which option best serves your organization's needs and stakeholder requirements.
Do all nonprofits need to file Form 990 with the IRS?
Most tax-exempt organizations must file some version of Form 990 annually, though very small organizations with gross receipts under $50,000 may only need to file Form 990-N electronically. The specific form depends on your organization's revenue and asset levels. Filing requirements vary, and penalties for late or incorrect filing can be severe, including potential loss of tax-exempt status.
How can we improve our nonprofit's financial transparency for donors?
Start with clear, professionally prepared financial statements and annual reports that highlight program impact alongside financial stewardship. Consider publishing key financial information on your website, including your Form 990 and audited financial statements. Regular communication about how donations are used and maintaining detailed records of restricted fund compliance also builds donor confidence and supports long-term relationship building.
What internal controls should our nonprofit have in place?
Essential controls include segregation of duties for cash handling, approval processes for expenditures, regular bank reconciliations, and board oversight of financial activities. Document policies for expense reimbursement, procurement, and conflict of interest situations. Regular board review of financial statements and establishing an audit committee can strengthen oversight. We help organizations implement appropriate controls based on their size and complexity.
How do we handle restricted funds in our accounting system?
Restricted funds must be tracked separately from unrestricted funds to ensure compliance with donor intentions and grant requirements. This involves setting up proper fund accounting within your bookkeeping system and maintaining detailed records of how restricted funds are spent. Regular reporting to donors and funders about restricted fund usage is essential for maintaining trust and ensuring future funding opportunities.
What should we look for when choosing a nonprofit accountant?
Look for experience specifically with nonprofits, understanding of fund accounting principles, and familiarity with Form 990 preparation and nonprofit tax regulations. Ask about their experience with organizations similar to yours in size and mission focus. References from current nonprofit clients and demonstrated knowledge of grant compliance requirements are also important factors to consider when making your decision.
Partner With
Nonprofit Accounting Specialists
Your mission deserves financial management that supports growth, ensures compliance, and builds donor confidence. At ClarkHirth CPAs, we combine deep nonprofit expertise with personalized service that fits your organization's unique needs and budget.
From startups applying for their first grants to established organizations planning capital campaigns, we've helped nonprofits navigate financial challenges and achieve their goals. Our team understands that every dollar matters in the nonprofit world, and we're committed to helping you maximize your impact while maintaining the highest standards of financial stewardship.
Ready to strengthen your nonprofit's financial foundation?
Call us today at (860) 904-4436 to schedule a consultation.
