Unlike a for-profit, your nonprofit’s accounting isn’t just about profit and loss—it’s about fund stewardship. Get it wrong and you risk audits, audit-triggered grant holds, and lost donor trust.

 

Fund Accounting Pitfalls

  • Recording restricted grants as general revenue
  • Missing transfers or expense allocations
  • Poor documentation for program, admin, and fundraising costs
  • Forgetting to reconcile all funds monthly

 

Fixing Fund Accounting Fast

1. Segregate Everything
 Unique codes and bank accounts for each fund/grant.

2. Document, Document, Document
 Every transfer, cost, and decision—get it in writing.

3. Monthly Reconciliations
 A few hours a month saves panic at audit time.

4. Ask a Nonprofit CPA
 Experts spot compliance risks before they blow up into real trouble.

 

The Bottom Line

Show transparency. Stay audit-ready. SkillBench helps build fund accounting systems that keep your auditors (and donors) happy.