Industries
Nonprofits
Finbryn sets up fund accounting so restricted and unrestricted funds stay separate instead of blended into one pool, with functional expense allocation across program, management and fundraising built into the monthly close. We work inside QuickBooks Online or Sage Intacct and prepare data for the annual Form 990.
Management report
Illustrative client · August 2026
USD
| Line | Aug | Jul | |
|---|---|---|---|
| Revenue | 142,380 | 131,904 | +10,476 |
| Cost of sales | (51,260) | (48,115) | (3,145) |
| Gross profit | 91,120 | 83,789 | +7,331 |
| Payroll | (46,300) | (45,900) | (400) |
| SoftwareNoted | (6,480) | (5,490) | (990) |
| Rent | (8,000) | (8,000) | 0 |
| Other operating | (9,215) | (9,870) | +655 |
| Net income | 21,125 | 14,529 | +6,596 |
Reviewer's note
Software is up on last month after two seats were added mid-month. Revenue includes one milestone invoice that will not repeat next month.
Illustrative. An example of the document, not a client's figures.
Exceptions report
Where the books usually hurt
Restricted and unrestricted funds get tracked in one undivided pool instead of separate fund balances
Grant spending needs to be reported back to the funder in categories the accounting system was never set up for
Functional expense allocation between program, management and fundraising gets done once a year instead of monthly
Board and audit committee need clean statements on short notice and the books are usually behind
Restricted funds are not just a label on a report
A grant restricted to a specific program cannot legally be spent on general operating costs, no matter how the nonprofit's overall cash position looks. Tracking restricted and unrestricted funds as one undivided balance makes it impossible to know, at any point, whether the organization has actually stayed within the boundaries a funder set.
Finbryn sets up fund accounting so each restricted grant, program fund and unrestricted operating balance is tracked separately inside QuickBooks Online or Sage Intacct. When a grant's spending categories do not map cleanly onto the organization's existing chart of accounts, we build the sub-accounts needed to report back to that specific funder in the format the grant agreement requires.
Functional expense allocation and board reporting
Nonprofit financial statements generally need expenses split across program, management and general, and fundraising categories, an allocation that many organizations only do once a year when preparing for the annual return, well after the numbers stopped being useful for internal decisions. We build functional allocation into the monthly close instead, using time studies, square footage or another reasonable basis agreed with the organization, so the board sees an accurate program-versus-overhead picture every month, not just annually.
Board and audit committee reporting tends to arrive on short notice with the books running behind; keeping the close current means a board packet or an auditor's request for supporting schedules does not turn into a scramble.
Form 990 and working with Finbryn
We prepare the underlying financial data that supports the annual Form 990; the return itself is filed by the organization or by a credentialed preparer, since Finbryn does not sign or file tax returns on a client's behalf.
You keep your QuickBooks Online or Sage Intacct file. A named pod manages your account, with a recorded handover memo if that pod changes, and books are reconciled weekly with the close by business day five. Organizations bringing fund accounting current after a period of blended books usually start with a catch-up project, priced separately from ongoing monthly bookkeeping. Pricing is published on our pricing page.
Questions
Frequently asked questions: Nonprofits
Do you set up fund accounting for restricted grants?
Yes. Restricted funds are tracked separately from unrestricted operating funds so grant spending stays within the boundaries the funder set and can be reported accurately.
Can you help prepare functional expense allocations?
Yes. Program, management and fundraising expense splits are built into the monthly close using a reasonable allocation basis agreed with the organization.
Do you prepare data for the Form 990?
We prepare the underlying financial data used to complete the Form 990. The return itself is filed by the organization or by a credentialed preparer.
Can you support multiple grants with different reporting requirements?
Yes. Each grant can be tracked with its own sub-accounts so spending can be reported back to the specific funder in the format its agreement requires.
Do you help prepare the data behind Form 990?
Yes. Functional expense allocation, grant and contribution schedules, and related-party transaction detail are prepared from your books in the format a credentialed preparer needs for Form 990, though the return itself is filed by that preparer or your board-approved signer, not by Finbryn.
What are the common bookkeeping challenges for a nonprofits business?
Beyond the basics, functional expense allocation between program, management and fundraising gets done once a year instead of monthly and board and audit committee need clean statements on short notice and the books are usually behind come up often in this industry. We build the chart of accounts and reconciliation process around those specific patterns rather than a generic template that ignores how the business actually operates.
What software do you support for nonprofits?
We work inside QuickBooks Online and Xero, along with the other tools listed on this page that are common in the nonprofits industry. If you have no file yet, we set one up in your name so you own it from day one.
Related services
- BookkeepingMonthly bookkeepingOngoing monthly bookkeeping: transactions sorted into categories, accounts reconciled and month-end reports delivered in the software you already use.
- BookkeepingCatch-up and cleanup bookkeepingMonths or years of books brought up to date and reconciled, with a written record of every adjustment, so monthly bookkeeping can start from a clean base.
Next step
Talk to the team that would run your books
A short call covers your setup, your software and what a first month would look like. You get a written scope and price after it.