Bookkeeping for Nonprofits (eBook)

THE AUTHORS Murray Dropkin, C.P.A., M.B.A., is president of CMS Systems, Inc., a consulting firm that specializes in improving the operational and financial operations of nonprofit and for-profit organizations. He has published extensively in the field of nonprofit accounting and is coauthor of The Budget-Building Book for Nonprofits and The Cash Flow Management Book for Nonprofits, both from Jossey-Bass. He co-edits Nonprofit Report, a monthly newsletter on nonprofit accounting, taxation, and management. He is coauthor of the three-volume Guide to Audits of Nonprofit Organizations and frequently speaks at professional meetings and consults around the country. James Halpin, C.P.A., M.S., is a software developer, systems consultant, and accountant specializing in cost accounting concepts. He has more than thirty years of experience in accounting, auditing, taxation, management consulting, software development, and computer consulting. He co-edits the monthly Nonprofit Report newsletter.

List of Exhibits and Checklists.

Dedication.

Preface.

Acknowledgments.

The Authors.

PART ONE: UNDERSTANDING
THE IMPORTANCE OF GOOD
BOOKKEEPING.

1. Overview of the Bookkeeping Function.

2. The Accounting Equation.

3. The Chart of Accounts.

PART TWO: RECORDING
TRANSACTIONS CORRECTLY THE
FIRST TIME.

4. Income.

5. Cash Receipts.

6. Payroll.

7. Purchases.

8. Cash Disbursements.

9. General Journal Entries.

10. The Month-End Close and Account Analysis.

11. Allocating Costs.

PART THREE: PUTTING
IT ALL TOGETHER.

12. Financial Statements.

13. Operating Budgets.

14. Cash Flow Reporting, Forecasting, and Management.

15. Conclusion.

PART FOUR:
RESOURCES.

Resource A: Good Financial Management.

Resource B: Setting Up Your Files.

Resource C: Alternative Recordkeeping Approaches.

Resource D: Managing Your Computer System: Security, Backups,
and Other Considerations.

Resource E: Organization and Tax Issues of Tax-Exempt
Organizations.

Resource F: Checklist: Financial Monitoring of Government
Grants.

Resource G: Excerpts from OMB Circular A-122.

Resource H: Web Site Resources.

Resource I: Bibliography.

"This much-needed resource provides those with little or no
bookkeeping experience with practical advice in a highly accessible
format. Designed to be easy to use, this book is filled with
illustrations and checklists." (bookbargainsandpreview.com,
4/28/08)

"...will be of help to the novice in developing
financial reports and budgetary management systems."
(Accounting Technician, Oct 2005)

"Bookkeeping for Nonprofits is the remarkable new guide for
a new generation of accounting challenges bookkeepers face every
day."

--Frances Hesselbein, chairman and founding president, Leader to
Leader Institute

"Bookkeeping for Nonprofits provides a rare combination
of consummate professionalism and clear, accessible writing.
Underlying the wealth of technical information lies a great deal of
wisdom. The authors have found a way to translate their enormous,
on-the-ground experience into usable, actionable policies,
procedures, and practices. It is a book that gives all you need to
create a fiscally responsible agency with the bonus of helping you
become a better manager and a wiser person."

--Peter Block, business consultant and author of Flawless
Consulting and The Empowered Manager

"Bookkeeping for Nonprofits provides an excellent
understanding of the practical application of bookkeeping in the
real work environment."

--Ron Werthman, vice president, finance/treasurer and CFO, Johns
Hopkins Health System, The Johns Hopkins Hospital

"This is a wonderful book that every bookkeeper in a nonprofit
organization should have."

--Eusebio David, fiscal director, Federation of Multicultural
Programs, Inc.