Project M.O.S.T.: A Step-by-Step Guide for Small Businesses and Nonprofits Using QuickBooks

Managing your business’s finances doesn’t have to be a mystery. Whether you’re running a nonprofit, launching a startup, or managing a growing small business, having a clear understanding of your financial health is key to sustainability and success. In this second installment of the Financial Management workshop series from Project MOST, Audrey Bradley, a seasoned bookkeeper, walked participants through QuickBooks Online and demystified core accounting processes like reporting, 1099s, and reconciliation.

Understanding the Basics: Reports That Matter

Audrey began the session by addressing the primary difference in financial reporting between for-profit businesses and nonprofits. For businesses, key reports include the Profit and Loss Statement and the Balance Sheet. In the nonprofit world, these are respectively referred to as the Statement of Activity and the Statement of Financial Position.

Despite the difference in naming conventions, the underlying function of these reports remains consistent. They show your revenue, expenses, assets, and liabilities—giving you a financial snapshot of your organization. Understanding these documents is the first step toward smart financial decision-making.

Setting Up Vendors and Managing 1099s

One common pain point for small organizations is the handling of 1099s. Audrey walked attendees through how to set up vendors in QuickBooks to make end-of-year reporting simple. If you’ve paid a contractor or vendor more than $600 in a year, it’s important to request a W9 and input the necessary tax information into QuickBooks.

QuickBooks helps streamline the 1099 process by walking you through account mapping, form selection (NEC or Misc), and filing. Ensuring your vendor setup is accurate now will save countless hours and reduce stress during tax season.

Deep Dive into Reports: From Basics to Strategy

Financial reports aren’t just for compliance—they’re tools to evaluate performance and plan for growth. Attendees learned how to use reports like:

  • Profit and Loss

  • Balance Sheet

  • Cash Flow Statement

  • Aged Receivables (AR)

  • Aged Payables (AP)

  • Budget vs. Actual

  • Profit and Loss as a Percentage of Income

Audrey emphasized the importance of tracking income and expenses not just generally but by class or program. For nonprofits, this could mean separating grants and funding sources. For businesses, it could mean separating different locations or service categories.

This level of detail helps organizations see where they’re thriving and where they may need to adjust. It also makes it easier to report back to funders or make a strong case to potential investors.

Budgeting: Stay Ahead of the Curve

QuickBooks allows users with the Plus or Advanced subscription to set budgets and compare them against actual performance. During the workshop, Audrey demonstrated how to read the Budget vs. Actual report and explained how organizations can use this data to adjust strategies mid-year.

 

Tracking by quarter allows businesses to identify seasonal trends and pivot as necessary. For example, if Q3 numbers dip below expectations, it may be a signal to boost marketing or explore additional revenue sources.

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Community Talk Back

The final portion of the workshop allowed nonprofit leaders to share their challenges. Common issues included receiving IRS penalties due to missed deadlines, not knowing about state filing requirements, and difficulties communicating with government agencies.

Attendees also raised questions about how to change IRS status from a private foundation to a public charity, how to appeal penalties, and how to manage financials in small teams with limited resources.

A key message echoed by all speakers was the importance of being proactive, not reactive. Nonprofits must see tax filings not as burdens but as opportunities to demonstrate impact, secure funding, and establish credibility.

Conclusion

This Project M.O.S.S. session was a masterclass in nonprofit tax compliance. With the guidance of experienced professionals like Patricia Hoggart, nonprofits can navigate these complex requirements with confidence. The tools are out there. The resources are free. The support is available.

The question is, will your nonprofit take the necessary steps now to avoid costly errors later?

For more information or to access additional support, contact The Prep Institute, Black Tech Link, or review the detailed resources in the presentation provided during the workshop.

Stay informed. Stay compliant. Stay impactful.

Want to Join the Movement?

If you’re a small business or nonprofit looking to grow, modernize, and get connected to real opportunity—Black Tech Link is here for you.

➡️ Visit blacktechlink.org
📌 Click on the Small Business Mastery Program
🗓️ Book a free session by hitting Talk With an Expert

Your mission deserves to thrive. Let’s make that happen—together.