FAQs

 1. What makes NonProfit Numerics unique?

We are uniquely qualified to meet the needs of nonprofit organizations and the firms conducting their audits. We have perfected the use of Quickbooks online to report out effectively, producing all of the reports and schedules needed by staff, auditors, boards and funders.  We are incorporated as Worker Co-Operative, dedicated to the principles of cooperation and equality in our management. We have over ninety nonprofit clients and growing.

2. Are you insured?

We have no instances of bankruptcies or malfeasance and also carry an errors and omissions policy for which we have had no claims.  We carry General Liability and Professional Liability policies as well as Cyber insurance and Workers Compensation.

3. Are you QuickBooks Certified?

We are QuickBooks Pro Elite Advisors  and use only the online edition of QuickBooks in addition to having an expertise in the Generally Accepted Accounting Principles of the nonprofit client. We also have an expertise in set-up of entities and using a chart of accounts that flows easily into a grant application, 990 nonprofit tax form or internal financial statements.

4. What is your role in nonprofit audits?

We have participated in countless audits and most of the items on the “Prepared by Client List” are provided to your auditors by our team.  We recommend using the accrual basis of accounting for the most transparent fiscal picture.  This method shows all that is owed in and owed out in addition to the income and expenses received and owed out.

5. Do you offer training in nonprofit bookkeeping?

Financial Statements should be reviewed monthly or at least semi-monthly by the board.  We are also happy to provide training or presentations on how to read your financial statement.

6. Will I be working with the whole team?

Our team is thoroughly cross-trained on client needs. We are available by email or call to any treasurer with questions.  Your need may be delegated to the person on the team with the expertise to get it done as quickly and as efficiently as possible. Should you have an immediate need or concern you would contact Lisa McCarthy founder-owner directly by phone.

7. Do you offer payroll for nonprofit organizations?

Yes! We work third-party payroll services including Paychex and Vision. We use Melio/Intuit payments for Accounts Payable, which we find works best with QuickBooks.

8. How do you keep our information safe?

We use the Practice Protect and TeamWork. This  financial software is cloud based and access to the file can be given with parameters appropriate to the task/need.  Often Treasurers are given “report only” access, while internal staff may be given access to add deposits or pay bill if that duty is delegated internally.

9. What is a ‘Related Party’ and how can they affect nonprofits?

A related party is generally a person who serves as a key influencer of the nonprofit organization or a relative. A related party transaction occurs between two or more of these parties. When a related party has substantial influence over the affairs of a corporation, heightened procedures are required. Transactions may be considered invalid unless deemed in the organization’s best interest. Therefore, it’s critical that a conflict of interest policy be developed, written, and implemented.

10. We are a small business, how can I provide my employees with health insurance?

Small business owners can offer health insurance for employees through Take Command’s all-in-one HRA administration platform by offering a QSEHRA or ICHRA. www.takecommandhealth.com

11. How does HRA (Health Reimbursement Arrangement) help nonprofit employees?

HRA, called ICHRA or QSEHRA, allows employees to get their own health insurance plan and get reimbursed in accordance with AHA. Without HRA, employees have to pay payroll taxes on their health insurance.

12. Can small nonprofits buy more traditional health insurance plans?

Many clients go through the Small Business Service Bureau to buy traditional corporate insurance plans at a more competitive rate.

13. Can a third party manage my organization’s benefits and/or payroll?

Yes. Some clients have a Common Paymaster, a related entity that manages the benefits (and often Payroll too).

Will you help us sustain ourselves after you come in to help?
Yes. We will help implement effective Segregation of Duties (SOD). SOD ensures no one individual can act alone to subvert a process for their own gain or purposes. Appropriate SOD can prevent and detect internal problems.

14. We are a grass-roots organization without a 501(c)3 status… can you help us?

Yes. We may consider a “Fiscal Agent Agreement.” Essentially, a nonprofit acts as your fiscal agent and allows you to collect donations as charitable contributions.

15. What is a Worker Co-Op?

As a Worker Co-Op, we are a collaborative firm in which the members own and operate the business. Everyone who works here strives toward common goals and is dedicated to increasing overall productivity.

16. Why does my 1099 include expenses?

1099 includes reimbursable expenses. All of our clients use this option when preparing expense reimbursements to independent contractors:

If the business does not have an accountable plan and does not require independent contractors to provide receipts, then reimbursed amounts WILL be included in the totals on the Form 1099-MISC. It will then be up to the independent contractor to deduct those business-related expenses on their own tax return.

If you are the business that is paying independent contractors, it is better for you to NOT have an accountable plan and leave the responsibility for finding and keeping receipts to your independent contractors. It is simpler and easier to simply report all payments on the Form 1099-MISC and it saves you from the liability of retaining documentation and receipts for years and years. For the tax geeks out there, choosing to NOT have an accountable plan also passes the 50-percent limitation on meal and entertainment deductions on to your independent contractor.

If you are the independent contractor, then you need to know which option your client will be using. If your client reimburses you for expenses and includes those reimbursements on the 1099-MISC form, then simply deduct those expenses on your own tax return.