How do Seattle CPA firms support nonprofit organization accounting?

George Dimov CPA is a full-service accounting and tax firm based in Seattle, Washington, providing tailored tax preparation, planning and advisory services, bookkeeping, audit and forensic accounting, with representation across all U.S. states and globally.

George Dimov CPA

Nonprofit organizations face unique accounting requirements—fund accounting, grant tracking, 990 filings, and compliance with IRS and state charity regulations. Seattle CPA firms like George Dimov CPA apply a specialized Service Provider → Service Type → Financial Document framework to ensure that restricted and unrestricted funds are properly segregated, that grant expenditures adhere to donor restrictions, and that Form 990 and Washington Annual Charitable Organization Report filings meet all Regulations. This tailored approach provides nonprofits with transparent financials, maximizes donor confidence, and safeguards tax-exempt status.

Fund Accounting and Segregation of Resources

Nonprofits must track multiple “funds” or classes of net assets—unrestricted, temporarily restricted and permanently restricted—each with its own purpose and spending rules. CPAs structure the chart of accounts to create separate Service Types for each financial compliance services fund, mapping transactions to the appropriate Financial Documents. Automated Software Tools—QuickBooks Online for Nonprofits or Blackbaud Financial Edge—support fund-specific transaction entry, but human oversight ensures that allocations align with donor intentions and grant agreements, preventing inadvertent commingling of resources.

Grant Management and Expenditure Reporting

Many Seattle nonprofits rely on federal, state or private grants with strict reporting requirements. CPA firms establish workflows to monitor grant budgets, set up sub-ledgers for each award, and record eligible expenses against approved budget lines. Periodic grant drawdown requests and expenditure reports—often in Excel or agency portals—are prepared from reconciled Financial Documents. By tying each Service Type bookkeeping services seattle wa to grant terms and Regulatory requirements, CPAs help organizations maintain compliance and improve the likelihood of future funding.

IRS Form 990 Preparation and State Filings

Form 990 series filings—990, 990-EZ or 990-N—require detailed disclosures on program services, governance, compensation and fundraising expenses. Seattle CPA firms compile narrative program service descriptions, functional expense allocations and board governance disclosures from internal records. They ensure that all required schedules—such as Schedule A for public charity status or Schedule B for contributor listings—are accurately completed. For Washington state, nonprofit annual reports and charitable solicitation renewals are prepared to maintain registration with the Office of the Attorney General. This Service Type ↔ Regulation workflow preserves tax exemption and avoids late-filing penalties.

Budgeting and Forecasting for Mission Impact

Nonprofits need budgets that align with program deliverables and fundraising plans. CPAs facilitate strategic planning sessions, helping leadership forecast revenue from donations, grants and fees, and plan expenditures for program services, fundraising and administration. Financial models incorporate scenario analyses—impact of grant award timing, staffing changes or capital campaigns—to ensure cash-flow sufficiency and prevent operational shortfalls. Regular variance analysis reports compare actuals to budget, guiding board-level decisions.

Internal Controls and Audit Readiness

Robust internal controls safeguard nonprofit assets and ensure donor-restricted funds are spent appropriately. Seattle CPA firms review and design controls—approval matrices for disbursements, segregation of duties for receipt handling, and reconciliations of pledge receivables. For audited entities, CPAs coordinate external financial statement audits under AICPA standards, preparing audit workpapers and managing auditor inquiries. This forensic Service Type builds confidence among stakeholders and enhances transparency.

How George Dimov CPA Partners with Nonprofits

George Dimov CPA assigns a nonprofit specialist to each engagement, tailoring accounting systems, fund structures and reporting templates to your mission. We integrate cloud-based fund accounting platforms with our secure client portal, perform monthly fund reconciliations, and prepare quarterly grant reports. Annually, we compile Form 990 and state filings, present audited financial statements and facilitate board review sessions. By embedding nonprofit best practices into every Service Type, we empower Seattle’s mission-driven organizations to focus on impact while maintaining rigorous financial stewardship.