Your hands-on guide to keeping great records and keeping yournonprofit running smoothly Need to get your nonprofit books in order? This practical guidehas everything you need to know to operate your nonprofit accordingto generally accepted accounting principles (GAAP) -- fromdocumenting transactions and budgeting to filing taxes, preparingfinancial statements, and much more. You'll see how to stayorganized, keep records, and be prepared for an audit. Begin with the basics -- understand common financial terms,choose your accounting methods, and work with financialstatements Balance your nonprofit books -- set up a chart of accounts,record transactions, plan your budget, and balance your cashflow Get the 4-1-1 on federal grants -- find grants and apply forthem, track and account for federal dollars, and prepare for agrant audit Stay in good standing with Uncle Sam -- set up payrollaccounts for employees, calculate taxes and deductions, andcomplete tax forms Close out your books -- prepare the necessary financialstatements, know which accounts to close, and prepare for the nextaccounting cycle Know what to do if you get audited -- form an internal auditcommittee, follow IRS rules of engagement, and keep an immaculatepaper trail Open the book and find: The difference between bookkeeping and accounting How to maintain a manual or computer record-keeping system Ten vital things to know when keeping the books Do's and don'ts of managing federal grant money How to prepare for an audit of your financial statements IRS Form 990 good practices The most common errors found during nonprofit audits How to figure out employee payroll deductions and taxes