Understanding Nonprofit Accounting Myths: GAAP vs. IRS Rules Explained

Many nonprofits mistakenly assume that the numbers on their fianancial audit (GAAP) will match all the numbers on their 990 (IRS), but that’s not the case.

Learn why FASB and the IRS actually ask for different information, and how that impacts your financial reporting.

In this informative video, we delve into the myth surrounding nonprofit accounting that GAAP (Generally Accepted Accounting Principles) and IRS rules are identical. As an experienced CPA specializing in nonprofit finance, I clarify the key differences between these standards. Discover why GAAP emphasizes accrual basis accounting and detailed reporting, whereas IRS rules may differ, especially in areas like in-kind services and unrealized gains. Gain insights into how these discrepancies can affect your financial reporting and compliance requirements. Whether you're a nonprofit professional or simply curious about accounting nuances, this video provides essential clarity on navigating nonprofit financial regulations.

Catch her full episode here: