Expense Categorization for Nonprofits
An accurate picture of your organization’s financial health and performance begins with correctly categorizing your expenses. Let us help you better understand the expenses of your organization.
What is Expense Categorization?
In order to create accurate financial statements, your organization’s expenses must be categorized correctly. Having accurate and complete financial statements is important for organizations to stay compliant with government regulations.
Compliance aside, correct expense categorization allows you to make informed decisions. By knowing what your organization is spending on, you can create a budget and look for areas to cut back spending or increase spending depending on the goals of your nonprofit.
How we Categorize Expenses
Our categorization process involves linking your organization’s bank transactions to QuickBooks, where they are then categorized according to the Chart of Accounts.
Our goal is to connect all of the information in one place to provide you with an accurate picture of the financial activities occurring within your organization.
Reach out to us to learn more about how we can help your organization!
Expense Management Platforms We Work With
Statement of Functional Expenses
Nonprofits are commonly required to put together a statement of functional expenses, where the expenses of the organization are organized into three primary categories. Proper expense categorization makes creating this statement simple and easy.
Program Expenses
Program expenses refer to the funds used by the organization that are related to the primary mission of the nonprofit.
Administrative Expenses
Administrative expenses are funds allocated to the daily operations of the organization. This may include payroll, office supplies, etc.
Fundraising Expenses
Fundraising expenses refer to the expenses related to fundraising events and campaigns, which is important for donors to understand how your organization uses its resources to raise funds.
Understand your Organization’s Financial Health
Our team has years of experience categorizing expenses for nonprofit organizations. We specialize in helping nonprofits because we know how unique each organization can be.
Our goal is to help you better understand the financial performance of your organization, while saving you time so you can focus on the mission of your organization.
Reach out to us for a free consultation to learn more about how we can help your nonprofit!
FAQs
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Our expense categorization service is included in all of our bookkeeping packages. Our most basic bookkeeping package starts at $499/month for organizations with 1-4 employees and an operating budget under $300,000.
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If the expense management platform you use wasn't listed above, please reach out to our team to see if it is a platform we can work with. You can schedule a consultation, give us a call at (503) 208-4255, or send us an email at info@rachelpeterson.finance.
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No, there is no limit to the number of bank accounts or transactions we can manage. Our bookkeeping plans and pricing is based on the number of employees and the operating budget of the organization.
