Easy Non-Profit Bookkeeping

No one tells a prospective executive director that a big part of running a non-profit is all the accounting. The ED is responsible for recording all the revenue that flows into the organization, all the payments that go out, and to make sure it all balances.

No bookkeeper.

If a non-profit is lucky enough to have bookkeeping software, the job will be easier. For even luckier non-profits, with an actual bookkeeper, the job will be faster. The brutal truth is that many non-profits can’t afford to hire a bookkeeper and aren’t big enough to warrant the software – even IF the executive director has time to learn how to use it.  

Set-up your budget spreadsheet.

The great news is that a simple spreadsheet can help smaller non-profits keep accurate records that are easy for the team, the board, and the auditor to understand. Here’s how to do that.

Begin with a blank spreadsheet and create 3 tabs, or CLICK HERE to download a template.

Tab #1: Budget Report

The first tab is the budget report that will be shared at board and staff meetings. The budget report is a summary of the budget categories, not the detail. Record all the revenue and expenses budgeted/planned for one operating year, broken down by category.

A budget does take a bit of guesswork to create. With a little level-headed estimation, a look at past year’s historical details, it is easy to make a reasonable plan for the year. Put this plan into one single column, with revenue at the top, then expenses under.

Beside the budget column, you’ll want a place to show actual amounts as they accumulate throughout the year. You can handle this information in two ways, either a single column of actual amounts as they accumulate during the year, or monthly columns.

The next two tabs of the spreadsheet will be the information that feeds into the budget report.

Tab #2: Revenue

Working chronologically from the start of the operating year through to the end, record the details for each revenue item that comes in. Basic details to record, include the date, the amount, who the revenue is from, what it is for, and what revenue category it falls under.

Tab #3: Expenses

The expense tab is very similar to the revenue tab, but instead of recording revenue as it comes in, expenses are recorded as they go out (paying the bills). Working chronologically from the start of the operating year through to the end, record the details for each expense paid. Basic details to record, include the date, the amount, who was paid, what it is for, and what expense category it falls under.

Use the roll-up feature.

If you are comfortable setting up a few automations within the spreadsheet, the totals of each revenue category and the totals of each expense category can be set-up to automatically update in the Budget Report. This automation will allow an executive director to produce a budget report at any time without any additional work.

If you aren’t comfortable with setting up roll-up automations in a spreadsheet, you can ask someone to set it up for you or handle it all manually.

But wait, we don’t need all that.

If your non-profit is very small and the transactions for the year don’t warrant a 3-tab spreadsheet, all the information can be combined into one page. No changing tabs. CLICK HERE to download a simpler 1-tab template.

Regular data entry = audit ready.

If revenue and expense items are entered into the spreadsheet on a regular schedule (minimum monthly), it will be very easy to simply make a copy of the spreadsheet to provide to the auditor at the end of the year. Then you can start a fresh new spreadsheet for the next year.

Give it a try.

If you would like to download a sample spreadsheet to use as a starting point, I’m providing two options, a 3-tab version and a 1-tab version. Feel free to adapt to your own non-profit’s bookkeeping needs.

Questions?

Sometimes non-profit bookkeeping can be a little tricky. Maybe I didn’t provide enough detail, or you were looking for different information. What questions do you have? Please use the form on the right side of the page to let me know.

-Christie

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Hi, I'm Christie Saas, current Executive Director, past board member, and non-profit volunteer. I remember well, those early years when I lacked the training, the confidence, and the work-life balance to focus on becoming the best non-profit leader I could be.

Fast-forward past many bumps in the road, lessons learned, and you’ll find me still in the trenches, but a little wiser, a little calmer, and a whole lot happier. I love my work and I want to help you love yours too.

I created ChristieSaas.com so non-profit leaders never need to feel alone. I’m here to help. If you’re a brand-new non-profit leader, or a little more seasoned, someone who’s looking to make a meaningful contribution and still have time for a full life away from the job, you’re in the right place.

© Christie Saas 2023 All Rights Reserved

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