To analyze the financial health of your nonprofit organization, the board of directors needs quarterly financial statements, which monitor the flow of revenue. Likewise, for taxes, grants, and contracts, quarterly reports are required by federal and state government organizations. Make sure to take care of the following nonprofit accounting tasks:
Report payroll taxes to the IRS at the end of the quarter by submitting Form 941. The Federal Insurance Contributions Act (FICA) taxes are funds for the payment of old-age, survivors, and medical benefits. Employers must pay 7.65 percent of an employee’s gross salary to the IRS.
Prepare quarterly financial statements for your board of directors. Your board needs to know your financial status to plan future activities and to offset potential financial problems.
Complete quarterly financial status reports for government grants and contracts. The government expects you to track all expenditures and submit a report of what you have spent and how much you have left according to your records.
Complete quarterly progress reports for government grants and contracts. Quarterly progress reports indicate performance results in terms of numbers. They evaluate your progress by comparing what you expected to accomplish with what actually happened.
Meet with your board of directors. Your board must meet at least four times a year to fulfill federal and state requirements.