JD Accounting Solutions Services
JD Accounting Solutions will develop a systematic and programmatic financial reporting system for your Organization’s specific needs, which will enable Board Members, Funding Agencies, and other interested parties to monitor your program’s financial operations.
JD Accounting Solutions Services Include:
- Post financial transactions to appropriate ledgers
- Prepare monthly financial statements
- Prepare depreciation schedules
- Develop cost allocation plan
- Prepare monthly allocation reports
- Prepare monthly budget variance reports
- Reconcile bank statements
- Prepare annual cost reports
- Prepare 990 tax form
Post financial transactions to appropriate ledgers
We will maintain your Cash Receipts Journal (Accounts Receivable), General Ledger, Cash Disbursements Journal (Accounts Payable) and General Journal, to account for all assets, liabilities, net assets, expenditures and revenues of your Organization. We will ensure that all accounting transaction postings can be appropriately cross-referenced to supporting documentation (invoices, cancelled checks, and receipts); and that monthly ledger summaries accurately reflect the financial activities of your Organization.
Prepare monthly financial statements
We will prepare your monthly financial statements in accordance with the requirements of the Financial Accounting Standards Board (FASB), which include: a Statement of Financial Position (Balance Sheet showing your total assets, liabilities and net assets), a Statement of Activities (Income Statement combining revenues and expenditures, listed by function) and a Statement of Cash Flows (Showing where money was received and spent).
Prepare depreciation schedules
Depreciation is the process by which capital assets lose their value over time. It is important for organizations to track the depreciation of their capital assets to: assess the current value of capital assets; report accurate values on IRS Form 990; and plan for necessary upcoming capital purchases. We will prepare a depreciation schedule for your Organization that will track the total depreciation expense for the year, along with the sum of all depreciation expended to date for each individual current asset since it was first acquired.
Develop Cost Allocation Plan /Prepare Monthly Allocation Reports
Organizations that operate various programs or have more than one funding source are generally required to maintain a written cost allocation plan. The purpose of this cost allocation plan is to summarize, in writing, the methods and procedures that an Organization will use to allocate costs to various programs, grants, contracts and agreements. We will assist you in developing a plan that is suitable for your Organization, and appropriately distributes costs to all programs/funding sources in accordance with generally accepted accounting principles and benefits derived. In addition, we will prepare a monthly allocation schedule showing the distribution of indirect cost amongst your Organization’s various programs.
Prepare Monthly Budget Variance Reports
Budgeting is an essential part of ensuring a nonprofit’s financial health and overall sustainability. We will track your monthly revenues and expenses; and utilizing your Organization’s Annual Budget, we will prepare monthly budget variance reports comparing actual amounts with budgeted amounts.
Reconcile Bank Statements
Bank reconciliation is an important process to ensure adequate internal control over cash receipts and disbursements. We will prepare your monthly bank reconciliations and ensure that the amounts on your Organization’s bank statements are consistent or compatible with the amounts posted in the general ledger cash account. We provide a wide variety of reports reflecting debit and credit activity, and exceptions that have occurred on the account.
Prepare Annual Cost Reports
Some Funding Agencies require organizations to submit annual costs reports reflecting their actual operating cost for that fiscal year. We will prepare your annual cost reports, and ensure that reported costs are in compliance with the Funding Agency requirements.
Prepare 990 IRS Tax Form
All exempt organizations, other than private foundations, with gross receipts of more than $25,000 must file a 990 Tax Form with the IRS. On this annual return, organizations must report: their revenue, assets and liabilities; their functional expenses according to whether they were for programs, fundraising or administration; and expenses segregated by individual program service. Organizations must also complete a balance sheet and a support schedule that details the organization’s sources of revenue, each with particular categories specified. We will prepare your Tax Form 990, and ensure that all reported information accurately depicts the financial activities of your Organization.
