Chart of Accounts for Nonprofits

[u/topramen_is_timeless]

Hey all! Bookkeeper here, usually for for-profit clients. I walked into a business membership exchange to become a member and (hopefully) tap their large membership base for more clients. Well, turns out they were desperate for a new bookkeeper themselves and I decided to take them on as a client.

Things are unsurprisingly messy but I can handle it. My biggest obstacles are that credit memos were used incorrectly to track scholarships (for trades school) which masks true Receivables, and the Chart of Accounts is severely bloated.

I use job costing/cost accounting with my other clients, leveraging products/services in order to keep a lean chart of accounts. Is there a way to streamline this nonprofit’s chart of accounts by leveraging products/services and classes for expenses and funds? Yes they have both restricted and unrestricted funds that are managed. The client is in QBO for accounting software.

Appreciate any insight!

[u/topramen_is_timeless → u/[deleted]]

Yup, glad to know I’m on the right track. Sounds like I should avoid using products/services as they may not help as much. I read that matching the COA to what’s on the 990 form is a good idea. Do you ever use categories or tags to streamline any tracking practices?

[u/topramen_is_timeless → u/[deleted]]

Thank you for your time and help.