Your Funders Expect Accurate Grant Reports. Most Nonprofits Are Scrambling to Produce Them.
Grant accounting is complex — restricted funds, funder-specific reports, indirect cost allocations, and single audit requirements. Account Cloud tracks every dollar to the right source so your grant reporting is clean, on time, and audit-ready.
Complete Grant Accounting — From Setup to Closeout
Why Account Cloud
We Don't Just Know Accounting. We Know Nonprofit Grant Accounting.
Most accountants can track income and expenses. Fewer understand the specific requirements of grant-funded nonprofits — restricted fund accounting, funder report formats, indirect cost allocation, and what happens when a Single Audit is triggered.
Account Cloud works exclusively with nonprofits and mission-driven organizations. We've built our practice around the accounting complexity that comes with federal grants, foundation funding, and government contracts. When your auditor asks for a schedule of expenditures of federal awards, we're not learning what that is — we already have it ready.
- Nonprofit-only focus — no generic for-profit playbook applied to your mission-driven organization
- Grant compliance expertise — we understand OMB Uniform Guidance, restricted fund accounting, and funder reporting requirements
- Proactive tracking — expenses are coded correctly as they happen, not reconciled in a panic before the report is due
- Audit-ready records — we maintain documentation that satisfies both your financial auditors and federal program reviewers
- Dedicated partner — you work directly with us, not a support queue or rotating staff
- Integrated bookkeeping — monthly bookkeeping and grant accounting done together means nothing falls through the cracks at report time
Getting Your Grant Accounting Under Control Is Simpler Than You Think
Book a free grant accounting call. We start by understanding your current funding mix — how many active grants you're managing, what reporting requirements each funder has, and where your current accounting setup is creating the most friction. We'll identify the gaps and explain exactly how we'd address them.
We set up your accounting system correctly. Once you move forward, we establish a grant accounting structure that matches your funding reality — budgets by grant, correct expense codes, indirect cost rates, and reporting templates for each funder. If we're taking over from a previous accountant, we'll clean up what needs to be cleaned.
Grant reporting becomes routine, not stressful. From that point forward, expenses are tracked correctly in real time, funder reports are prepared on schedule, and your books stay clean for whenever your audit rolls around. You stop worrying about whether the numbers are right — because they are.
Common Questions About Grant Accounting
Restricted funds are donations or grants given with specific conditions on how they must be used — for a particular program, time period, or purpose. Unrestricted funds can be used at the organization's discretion. In nonprofit accounting, these need to be tracked separately because funders can — and do — ask for proof that their dollars were spent as intended. Mixing restricted and unrestricted funds creates compliance risk, audit findings, and potential grant recovery demands. Correct restricted fund accounting is the foundation of clean grant reporting.
Most foundations and government agencies require periodic financial reports showing actual expenses against the approved grant budget, often by budget category. Federal grants may require more detailed reporting including a schedule of expenditures by cost category, indirect cost support, and cash management documentation. State and local government contracts often have their own formats. We prepare the financial portions of all of these — formatted to match your funder's requirements and reconciled to your books.
A Single Audit (also called an OMB Uniform Guidance audit) is required for nonprofits that expend $750,000 or more in federal awards in a fiscal year. It goes beyond your standard financial statement audit to evaluate whether federal funds were used in compliance with applicable laws and grant agreements. If you're near or above that threshold, proper grant accounting documentation is essential — it significantly reduces the time and cost of the audit and minimizes the risk of audit findings.
Indirect costs are real expenses — rent, utilities, insurance, shared staff — that support multiple programs but can't be charged directly to a single grant. We help you establish or apply an indirect cost rate, which allows you to recover these costs from federal and other grants. We apply the rate correctly to each grant each period, maintain the documentation funders require, and reconcile indirect cost recovery to your actual expenses at year-end.
Yes. If you have overdue reports or a backlog of grant reconciliations, we'll work through them systematically — pulling transactions, coding them correctly, and preparing catch-up reports for each funder. We'll also put a system in place going forward so this doesn't happen again. The sooner we start, the more options you have with funders who may already be asking questions.