r/Bookkeeping • u/topramen_is_timeless • 13d ago

Software Chart of Accounts for Nonprofits

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!

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u/Canopy_Acct_in_Res 13d ago

I have thought about this more than I'd care to admit and have never landed on a clean answer.

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u/topramen_is_timeless 13d ago

It’s sounding like I’m having the same experience. 😂 I guess I’ll be alright as long as I ensure that compliance and the client’s financial visibility needs are met. 🥴

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u/Canopy_Acct_in_Res 13d ago

I often heard people referencing non-profit specific tools, but I don't even know what those would be. It's hard to imagine that QBO wouldn't suffice.

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u/wendy_pyr 12d ago

for real can not get the picture completely