Not for Profit Providing Services for Mentally Challenged

Situation:

This company provides everything from housing to clothing and food for those that are mentally challenged and unable to hold jobs. They receive their funding primarily from governmental agencies, both locally and federally, but also smaller amounts come from donations or families of those that are cared for that can afford to pay.

Their current bookkeeping system did not provide tracking of expenses against certain projects that they had received specific funds to pay. The Board was concerned about the accountability and they could not determine when all funds received had been expended which in many cases prohibited the possibility to request additional funds.

Solution:

Bookkeeping Express changed the Chart of Accounts to reflect classes and set each grant or source of funding up as a class for both revenues and expenses. By going back and changing the previous months input into the class identity, the Profit and Loss Statement can now be analyzed both as a whole, and as a sum of the parts.

When the Board meets now they can review costs incurred either by funding source, or by type of expense. They can also review how much is left to spend from particular grants and what their spending rate is to know when they should request additional funding.

Now that there are several quarters of information the Board has requested Bookkeeping Express provide them with suggested profitability ratios for some of the housing projects. This will be used to request additional significant funding from the government to provide additional housing for more people. This additional growth opportunity provides better services for more challenged people as well as more funding opportunities for the company to provide more services to their current people.

This would not have been available without the informative accounting methods developed for them by Bookkeeping Express.

Print this case study

Not for Profit Providing Services for Mentally Challenged

Situation:

This company provides everything from housing to clothing and food for those that are mentally challenged and unable to hold jobs. They receive their funding primarily from governmental agencies, both locally and federally, but also smaller amounts come from donations or families of those that are cared for that can afford to pay.

Their current bookkeeping system did not provide tracking of expenses against certain projects that they had received specific funds to pay. The Board was concerned about the accountability and they could not determine when all funds received had been expended which in many cases prohibited the possibility to request additional funds.

Solution:

Bookkeeping Express changed the Chart of Accounts to reflect classes and set each grant or source of funding up as a class for both revenues and expenses. By going back and changing the previous months input into the class identity, the Profit and Loss Statement can now be analyzed both as a whole, and as a sum of the parts.

When the Board meets now they can review costs incurred either by funding source, or by type of expense. They can also review how much is left to spend from particular grants and what their spending rate is to know when they should request additional funding.

Now that there are several quarters of information the Board has requested Bookkeeping Express provide them with suggested profitability ratios for some of the housing projects. This will be used to request additional significant funding from the government to provide additional housing for more people. This additional growth opportunity provides better services for more challenged people as well as more funding opportunities for the company to provide more services to their current people.

This would not have been available without the informative accounting methods developed for them by Bookkeeping Express.

Print this case study