Bookkeeping
We manage accounts receivable, accounts payable, bank reconciliation, payroll processing and other essential daily financial transactions.
Community & Advocacy
At JFW, we realize that Community and Advocacy leaders need to have real-time financial visibility to assist in decision-making and to maintain transparency.
Most people think of accounting as a back-office function. For nonprofits, that assumption is a liability.
A business tracks money to measure profit. A nonprofit tracks money to prove purpose. Those are fundamentally different goals, and they require a fundamentally different system. That system is fund accounting, and understanding it is one of the most important things a nonprofit leader can do.
The Nuts and Bolts of Fund Accounting
What is fund accounting? At its core, it is a method of tracking money based on where it came from and what it is allowed to do, not just how much came in and went out.
Each pool of money, called a fund, carries its own rules. Restricted funds can only be spent on what the donor specified. Unrestricted funds give the organization flexibility. Endowments are held and invested separately. Fund accounting keeps all of it organized and protected.
JFW Accounting Services was built to serve organizations that depend on this kind of financial discipline. Our accounting team specializes in building accounting systems that protect tax-exempt status, satisfy auditors, and give leadership the clarity they need to lead well.
The Stewardship Factor: Honor Your Donor’s Intent
Imagine a donor gives $25,000 specifically for student scholarships. She cares about that program. She wants to see it funded. Now imagine her donation gets absorbed into the general operating budget because the organization needed to cover a utility bill. She never finds out, but the funds are gone.
That is a stewardship failure. It may also be a legal one.
Fund accounting prevents this by creating a virtual firewall between every pool of money. Scholarship funds stay in the scholarship fund. Grant dollars restricted to program delivery cannot drift into administrative expenses. Each fund is tracked separately, with its own balance and its own allowable uses.
Think of it like the difference between one checking account for everything versus separate accounts for rent, groceries, and savings. When everything runs through a single account, it is easy for money to disappear in ways that are hard to explain later. Separate accounts make the picture clear.
Stewardship in nonprofit accounting is not just a financial practice. It is a cultural commitment. Organizations that take it seriously attract larger gifts. Major donors and foundations conduct due diligence before committing significant dollars. Clean fund tracking, accurate restriction management, and transparent reporting all signal that an organization can be trusted with a major investment.
Transparency Is the Best Fundraising Tool
Donors today are more financially sophisticated than they were a generation ago. Individual major donors, community foundations, and government agencies all want evidence that their money did what it was supposed to do. An impact story is compelling. Financial proof is what builds long-term trust.
Fund accounting makes that proof available quickly. When a grant funder requests a financial report, a well-structured fund accounting system can produce one that matches the grant budget line by line. There is no scrambling, no re-categorizing transactions after the fact, and no guessing about whether expenditures were allowable.
The alternative is worse than inefficiency. Accidental misuse of restricted funds, where money is spent on the wrong program or period, has ended careers and organizations. It is rarely intentional. It usually starts with a manual spreadsheet, a staff transition, or a cash-flow crunch. Proper fund accounting eliminates the conditions that enable those mistakes.
Fund Accounting as a Mission Safeguard
A nonprofit’s mission is long-term. The financial systems that support it need to be too.
Endowments and restricted reserves require separate tracking from operating cash. If those funds are not isolated, there is a real risk of spending tomorrow’s stability on today’s expenses. Fund accounting builds that separation into the structure of the books, not just a policy document that staff may or may not follow.
The annual audit is where financial discipline either shows or doesn’t. Organizations that maintain clear fund structures throughout the year arrive at audit time with documentation in order and accounts that reconcile. Auditors find what they expect to find. Findings are minimal. The process moves quickly.
Organizations that rely on manual tracking or informal systems spend weeks before the audit reconstructing records, answering auditor questions, and explaining variances. That is expensive and stressful, and it creates doubt about the organization’s internal controls.
Moving from Spreadsheets to Professional Systems With JFW Accounting Services
Early-stage nonprofits often start with spreadsheets. That is understandable. But spreadsheets do not scale and do not protect the integrity of funds in the way an organization’s stakeholders expect.
As staff changes, as grants multiply, and as donor restrictions grow more varied, a spreadsheet-based system requires more manual attention to maintain. One formula error or one missed entry can distort the entire picture.
Platforms like Sage Intacct change that. With Sage Intacct, fund structures are native to the system, grant tracking is automated, restriction balances update in real time, and reports that used to take days to compile take minutes.
JFW Accounting Services handles the setup, configuration, and ongoing management of these systems so your leadership team does not have to become accounting experts. Our team builds the fund structure, maintains the records, and produces the reports your board, funders, and auditors need. You focus on the mission. We make sure the financial foundation holds.
If your nonprofit is ready for accounting systems that reflect your values, contact us to schedule a discovery call.
Chat with a trained Community and Advocacy expert today to learn about our available service plans for:
• Reporting & Attestation: General ledger / Trial Balance, Cash Reconciliation, and Financial Statements
• Business Process Outsourcing: Accounts Payable / Bill Payment, Accounts Receivable / Collections, Cash Management and Reconciliation
• Virtual Controllership: Financial Statements, Comparative Reporting, Budgeting
• Virtual CFO: Financial Strategy, Financial Modeling, Market Analysis
We relish the opportunity to help you leverage your finances to make the biggest possible impact.
REQUEST A CLIENT ASSESSMENT TODAYCustomized for Your Needs
JFW Accounting Services will gain you confidence in your accounting and financial trajectory. Our accessible team of experts is adept at open and transparent communication, resulting in a seamless partnership that consistently performs. We offer many specialized services that can be customized to your needs, strengths and budget.
Client Advisory Services
We kick off every relationship with a Client Assessment – helping us understand your organization’s unique needs.
BOOK A CLIENT ASSESSMENT TODAYGain Complete Confidence in Your Accounting
Your organization’s team should be focusing their time on what matters most – achieving your mission. That’s why we provide nonprofits with accurate data and transparent communication you can trust. With regular meetings to discuss your organization’s financial health, you’ll be confident that your organization is compliant, accountable and strategically utilizing your financial resources.
Individual Approach
We take an individual approach to each and every client, taking the time to thoroughly understand your problems, needs and goals. The result? Customized strategy and solutions that set your organization on a path to success.
Exceptional Customer Service
As an extension of your team, we are available when you need us. Always accurate, professional and on time, we are dedicated to helping everyone harness the power of their numbers to reach their true potential.
Team Of Industry-Leading Professionals
We are a reliable team of experts with decades of experience in business and nonprofit accounting. Our Nonprofit CPA’s are fully certified and regularly pursue professional education opportunities that keep their fingers on the pulse of accounting trends.
Hear From Some of Our Happy Clients
Customer satisfaction is at the heart of everything we do. We’ve proudly partnered with several nonprofits and businesses to enhance their accounting processes, understand their numbers and reach their financial goals.
We look forward to helping you achieve your financial goals!
GET STARTEDNON-PROFIT ORGANIZATION SERVICES
We can help maintain your nonprofit organization’s tax-exempt status by handling all of your monthly and quarterly financial accounting as well as your annual IRS reporting (Form 990) needs. Our team works collaboratively with our nonprofit clients to develop smart accounting systems informed by IRS rules, regulations and classifications.
We offer the following services:
- Accounting System Implementation, including aligning the Chart of Accounts, Program alignment and maintenance
- Monthly/quarterly review and compilation of your financial statements, including the statement of functional expenses and revenue support schedules
- Bi-weekly, semi-monthly and monthly payroll preparation
- Preparation of financial reports for your board of directors
- Grant administration, compliance, budget proposals & financial reports
- Reducing fraud risks and establishing fraud controls
- Implementation of effective budgeting practices
- Customized training for your accounting personnel
- Preparation of schedules for your annual 990 tax filing
- Consultation and review of initial start-up documentation, including incorporation and form 1023/1024
COMPILATIONS & AUDIT PREPARATION
A compilation involves an accountant preparing or assisting in preparing financial statements without expressing any assurances that the statements are accurate, complete, and/or in conformity with Generally Accepted Accounting Principles (GAAP). Unlike a review, few, if any, procedures are performed.
An audit is a formal examination of an organization’s accounts or financial situation. It is the top level of investigation performed on a business’ financial statement. We can help your organization prepare for external financial or regulatory audits. We will work with your internal management team to identify issues and develop and implement appropriate corrective action prior to your audit reviews. We will prepare and perform necessary testing as well as provide supporting documentation and work papers.
PAYROLL SERVICES
Are you considering outsourcing payroll? If so, you are not alone. Managing payroll is a time-consuming burden. Payroll is a necessary function of employing people, but it does not help create revenue or increase sales. Simply, payroll can be a drain on most employers’ resources. Outsourcing payroll helps reduce costs and increase available capacity for more important work.