A budget is a financial plan over a period of time that matches expected income with expected expenses. This might be hard to estimate with donations and fundraising being a huge variable, but over time you will get a handle on the nature of your organization and how you can expect your finances to play out over the year, which makes budgeting much easier.
This overview has only scratched the surface of the accounting requirements that nonprofits have to address. There are many other important accounting functions that need to be done throughout the year. Your organization has to prepare financial statements, file taxes, and apply for and maintain tax-exempt status.
Fortunately, there are professional accounting firms that are dedicated to nonprofits and understand the challenges they face. If you are just starting a nonprofit organization or if you are newly in charge of one that has been poorly managed for years, give Rubino a call. We will help you make sense of it all.