Nonprofit Accounting
Nonprofit accounting services
MFO provides outsourced accounting built only for nonprofits. We keep your books accurate and current, close them every month, and track restricted funds and grants the way nonprofit accounting standards require. It’s a fit for 501(c)(3)s, 501(c)(4)s and related entities that want reliable books without building an in-house accounting team.
AT A GLANCE
Who it’s for
Nonprofits that need accurate monthly books, grant tracking and audit-ready records
What’s included
Bookkeeping, reconciliations, monthly close, fund and grant accounting, audit and 990 support
Your team
A dedicated Nonprofit Controller, backed by a Senior Accountant and a CFO
Systems
QuickBooks Online, Ramp, Gusto and LiveFlow
What’s included
Everything your books need, every month
Transaction coding
Bank and credit card activity is coded throughout the month, with receipts attached and questions raised early instead of at month-end.
Reconciliations
Every bank, credit card and balance sheet account is reconciled each month, so your numbers hold up when a board member, funder or auditor asks.
Monthly close
Accruals, prepaids, fixed assets, payroll entries and allocations are booked on a consistent schedule and reviewed before anything is delivered.
Fund and grant accounting
Net assets are tracked with and without donor restrictions, and grant spending is tracked against each award.
Functional expenses
Expenses are tracked by program, management and general, and fundraising, ready for your 990 and audited financial statements.
Multiple entities
Separate books for a 501(c)(3), its affiliated 501(c)(4) and other related entities, with shared costs and intercompany activity handled cleanly.
MFO doesn’t prepare tax returns or perform audits. We work directly with your auditors and 990 preparer so those engagements go smoothly.
How it works
A steady, predictable process
01
Kickoff and setup
We learn how your organization works, gather system access and history, and set up the chart of accounts, classes and tools you need.
02
Cleanup, if needed
If your books are behind or inconsistent, we bring them current through a separately scoped cleanup project.
03
Ongoing processing
Our team codes transactions, answers questions and keeps approvals moving throughout the month.
04
Monthly close
We reconcile, review and deliver your financial statements, typically around the 20th of the following month.
Who it’s for
A good fit if you are…
- Nonprofits that have outgrown a part-time bookkeeper
- Organizations preparing for an audit, including a first audit
- Organizations tracking restricted gifts and multiple grants
- 501(c)(3) and 501(c)(4) pairs and other related entities
- Teams switching from a firm that has become hard to reach
Related services
Works best together
“Working with them feels like more of an extension of your team than alternative bookkeepers. They helped us set up accurate and professional systems and have also been able to weigh in on more complex accounting and operations questions we’ve encountered.”
Common questions
Nonprofit Accounting FAQ
What does an outsourced nonprofit accounting firm do?
An outsourced nonprofit accounting firm handles the day-to-day accounting a staff accountant or bookkeeper would, plus the review and expertise of a controller. At MFO that means coding transactions, reconciling accounts, closing the books every month, tracking restricted funds and grants, and producing financial statements your board and auditors can rely on.
Can MFO clean up or catch up our books?
Yes. When books are behind or inconsistent, MFO brings them current through a separately scoped cleanup project, often alongside onboarding. How long it takes depends on how far behind the books are and how complete the records are.
Does MFO work with 501(c)(4) organizations and related entities?
Yes. Many MFO clients have a 501(c)(3) and an affiliated 501(c)(4) or other related entities. We keep separate books for each entity, track shared costs and intercompany activity, and can produce consolidated reporting.
What accounting software does MFO use?
MFO works in QuickBooks Online and regularly moves clients onto it from QuickBooks Desktop, Sage Intacct and other systems. We pair it with Ramp, Gusto and LiveFlow to automate bill pay, payroll and reporting.
Last updated October 2026
Get in touch
Put your mission first
Whether you’re looking for a new accounting partner or want to learn how MFO can serve your nonprofit, we’d love to hear from you.