Nonprofit Accounting
Nonprofit Accounting Services
Outsourced accounting for California nonprofits, kept the way your auditor will read it.
Rood & Dinis has served California nonprofits for many years. Our accounting team works alongside our nonprofit auditors and tax professionals, so your books, your board reports and your Form 990 all tell the same clean, defensible story.
Books built for audit and Form 990 review.
Good bookkeeping records what happened. Good nonprofit accounting records it the way it will be reviewed. Because Rood & Dinis also provides nonprofit audit and tax services, we know how an auditor tests your financial statements and what your tax preparer needs at year-end, and we keep your books with both in mind from day one.
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GAAP for not-for-profits.
We help your organization meet generally accepted accounting principles (GAAP) for not-for-profits, including net asset classification and functional expense reporting. We also bring the technical depth to handle restricted contributions, grant revenue and in-kind gifts.
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An auditor's eye on your financials.
Our nonprofit auditors work alongside our accounting team and review your financials to prepare you for external audit and review engagements, so you head into your annual audit prepared.
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Ready for year-end.
Your year-end close produces reconciled books and supporting schedules that hand off cleanly to your auditor and tax preparer, with experienced tax professionals on hand for questions such as unrelated business income tax (UBIT).
When it's time for a stronger accounting team.
Outgrowing your financial structure.
Growth, new grants or a first audit can expose cash-basis books, a cluttered chart of accounts and informal processes.
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Losing key people.
When a long-time bookkeeper, administrator or executive moves on, new leadership needs a financial team to lean on.
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Preparing for an audit.
Your grantors, donors, regulators and board all depend on sound financials, and California charities generally need audited financial statements once gross revenue reaches $2 million.
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Our nonprofit accounting packages
Every engagement is tailored to your mission, board and activities. Most organizations start with one of the packages below, and many combine them.
Cleanup & Audit Readiness
For organizations that have outgrown their books or are preparing for a first audit.
- Conversion to accrual basis accounting
- Chart of accounts cleanup
- Internal control structure, sized to your organization: segregation of duties, approval processes and board-level review
- Stronger financial processes
- Preparation for your first GAAP financial statement audit
- Move to cloud-based accounting, bill pay and reporting tools
Ongoing Outsourced Accounting
Your outsourced accounting team, month after month.
- Payroll processing
- Accounts payable management
- Accounts receivable management
- Monthly reconciliations and financial statement tie-outs
- Monthly board-ready cash or GAAP financial statement delivery
- Annual audit and tax support to your external CPA firm
- Board support
- Unlimited communication
Grant & Budget Support
For grant-funded and research organizations.
- Grants receivable management
- Grant activity reconciliation, invoicing and advance drawdown requests with granting agencies
- Monthly report submission
- Assistance preparing the annual budget
- Budgeting and grant compliance support
Concierge accounting, built for nonprofits.
Rood & Dinis takes a concierge approach: proactive, personal and focused on your organization's best interest.
A clearly defined scope.
We define the scope of your engagement up front, so you always know what to expect and can focus your resources on your mission.
Unlimited communication.
Call or email your team whenever questions come up, without watching the clock.
Monthly or quarterly close.
Reconciled books and board-ready financial statements on a schedule that fits your board.
Board support.
Clear reporting and guidance on financial language, regulations and best practices for your board and finance committee.
An independent view.
As your outsourced accounting team, we work separately from your internal staff and give your board an objective view of how transactions are recorded and reported.
Modern, cloud-based tools.
Cloud accounting, bill pay and reporting help your board see accurate numbers sooner and keep your records easier to maintain.
What our nonprofit clients say.
“Working with this team has been instrumental in strengthening our organization’s financial foundation. They helped us transition to accrual accounting, establish stronger internal controls, and prepare for our first financial statement audit. Their ongoing support with accounting, payroll, compliance, and board reporting gives us confidence and peace of mind, allowing us to focus on what matters most, providing a positive soccer experience for our young athletes. We’re grateful to have a trusted partner who understands the unique needs of a nonprofit organization.”
Andrew DonneryCEO, Elk Grove Youth Soccer League
140+
Years of combined CPA experience
600+
Active private businesses
85+
Active nonprofits
Nonprofit accounting for California nonprofits.
We support California charitable organizations and trade associations organized under code sections 501(c)(3), 501(c)(5) and 501(c)(6). We specialize in California nonprofits, with offices in Sacramento and Folsom and a Bay Area virtual office in Palo Alto.
Looking for nonprofit tax, audit or review services? Visit our Nonprofit page.
501(c)(3)
501(c)(5)
501(c)(6)
Sacramento Corporate Office
Bay Area Satellite Office (virtual)
3000 El Camino Real, Building 4, Suite 200, Palo Alto, CA 94306
(650) 316-5100
Virtual office; in-person meetings by appointment.
Frequently asked questions
Have a question that isn't answered here? Contact our team.
What is included in your nonprofit accounting packages?
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Ongoing packages typically include payroll processing, accounts payable and accounts receivable management, monthly reconciliations and financial statement tie-outs, monthly board-ready financial statement delivery, board support, annual audit and tax support to your external CPA firm, and unlimited communication. Grant-funded organizations can add grants receivable management, grant reconciliation and drawdowns, monthly report submission and budget assistance. Organizations that have outgrown their books can start with a cleanup and audit-readiness engagement.
How does your audit and tax experience help our books?
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Our nonprofit auditors work alongside our accounting team. We record restricted contributions, grant revenue, in-kind gifts, net asset classes and functional expenses the way GAAP for not-for-profits requires, so your financial statements hold up in your external audit and support an accurate Form 990.
Will you work with our external auditor?
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Yes. As your outsourced accounting team, we provide annual audit and tax support to your external CPA firm and prepare your organization for timely annual audits. We do not perform audit or attestation work for our accounting clients, so your audit is performed by an independent CPA firm.
When does a California nonprofit need audited financial statements?
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Under California law, charities generally need audited financial statements once gross revenue reaches $2 million. Grantors, donors or your board may also require an audit or review. We coordinate audited financial statements when required and get your books ready for the auditor.
Do you only work with nonprofits in Sacramento?
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No. We specialize in California nonprofits and serve 501(c)(3), 501(c)(5) and 501(c)(6) organizations throughout the state, from offices in Sacramento and Folsom and a Bay Area virtual office in Palo Alto.
Let's talk about your books.
We would welcome a brief conversation about where your organization's accounting stands today and which approach fits best. Call (916) 929-4450, email info@roodcpas.com, or schedule a consultation online.
