Nonprofit Bookkeeping Secrets: The 3 Software Tools You Didn’t Know You Needed – Jeremy Van Groll

Nonprofit organizations face unique bookkeeping challenges—ranging from tracking donor-restricted funds to producing compliant financial reports that satisfy boards and grantors. Without specialized systems in place, finance teams often spend countless hours reconciling data across spreadsheets and CRM platforms, delaying critical insights for decision-makers. In this article, drawn from Jeremy Van Groll’s podcast episode “Nonprofit Bookkeeping Secrets: The 3 Software Tools You Didn’t Know You Needed,” you’ll discover exactly how to streamline your nonprofit’s bookkeeping by niching into nonprofit accounting and leveraging three essential software tools. By the end, you’ll understand why focusing on nonprofit bookkeeping isn’t just a “nice to have” but a strategic way to add value, command higher fees, and position yourself as a mission-driven expert.

Meet Jeremy Van Groll

Jeremy Van Groll began his career as a corporate accountant at a mid-sized firm, managing general ledger reconciliations and month-end closes. When his company was acquired, he found himself with a “financial runway” that allowed him to consider alternative career paths. Inspired by his wife’s role within a local nonprofit and noticing the gaping need for dedicated bookkeeping support in mission-driven organizations, Jeremy took the leap—leaving his stable corporate position to launch a nonprofit-focused bookkeeping firm. With over five years of experience serving NGOs and charitable entities, he has guided dozens of clients through fund accounting, audited financial statements, and best-practice internal controls specifically designed for nonprofit operations. Jeremy’s journey—from corporate cubicle to nonprofit champion—makes him uniquely qualified to share actionable strategies on niching into nonprofit accounting and adopting the right software stack.

Why Niche into Nonprofit Accounting

Niching into nonprofit bookkeeping provides clear advantages for accountants and bookkeepers who want to stand out in a crowded marketplace. Jeremy emphasizes three primary benefits:

1. Reduced Competition & Clearer Marketing Message:

   • When you specialize in “nonprofit bookkeeping,” you no longer compete directly with every general-practice bookkeeper.

   • Your website, LinkedIn profile, and marketing collateral can use targeted keywords—such as “nonprofit fund accounting,” “IRS Form 990 preparation,” and “donor-restricted funds tracking”—to rank higher in search results.

2. Deeper Client Trust & Higher Fees:

   • Nonprofit leaders want to work with someone who understands their unique reporting requirements (e.g., Statement of Activities, Statement of Financial Position, functional expense reporting).

   • By mastering nonprofit-specific terminology and demonstrating familiarity with grant-based revenue recognition, you position yourself as a value-added partner.

3. Market Demand for Specialized Expertise:

   • Many small to mid-sized nonprofits lack in-house financial personnel. When they Google “bookkeeper for nonprofits” or “nonprofit accounting expert,” your niche keyword optimization ensures you appear near the top.

   • As Jeremy discovered, once you prove your expertise in areas like “board-restricted vs. donor-restricted funds,” referrals and word-of-mouth accelerate growth.

By claiming the niche “nonprofit bookkeeping expert,” you distinguish your services, command premium hourly or retainer rates, and develop deeper client relationships. This specialization also unlocks SEO opportunities: writing blog posts and creating video tutorials around phrases like “QuickBooks Online nonprofit setup,” “Bloomerang QuickBooks integration,” and “Blackbaud grant tracking tips” will drive organic traffic over time.

Tool #1: QuickBooks Online for Nonprofits

QuickBooks Online (QBO) remains the foundational accounting software for countless small businesses—but when configured for a nonprofit, it becomes a powerful tool for fund accounting, donor-restricted fund management, and compliance reporting.

Why QBO Is a Nonprofit’s Backbone

• Chart of Accounts by Fund: Create separate accounts or classes for each restricted funding source (e.g., “Program Fund A,” “General Operations Fund”). This enables clear segregation of donor-designated dollars.

• Statements of Activities & Financial Position: QBO’s built-in reporting templates can generate the Statement of Activities (akin to an income statement) and Statement of Financial Position (balance sheet). With the correct classes and locations assigned, these reports align with nonprofit reporting standards.

• Functional Expense Reporting: Nonprofits must categorize expenses by function—program, administrative, or fundraising. By tagging transactions using classes or tags, QBO can produce a functional expense report that complies with IRS guidelines and grantor requirements.

Jeremy’s QBO Best Practices

1. Set Up Classes (or Locations) Early:

   • “When I onboard a new nonprofit client, I begin by setting up classes for each fund and location for each department,” Jeremy notes. This ensures every transaction is automatically mapped to the correct fund or department.

2. Use Memorized Transactions:

   • For recurring expenses (e.g., rent, utility bills, payroll expenses), memorized transactions reduce data entry time and ensure consistent categorization.

3. Schedule Month-End Reconciliation:

   • Jeremy blocks off dedicated time on the calendar after month-end to reconcile bank accounts, credit card statements, and any interfund transfers.

4. Enable Nonprofit Library:

   • QBO’s Nonprofit content library includes sample nonprofit budgets and templates—Jeremy recommends exploring these to standardize processes across multiple clients.

By mastering these built-in features and integrating them into your workflow, you can quickly produce clean, audit-ready financials. Prospective nonprofit clients will appreciate your ability to “hit the ground running” because setting up QBO properly eliminates downstream headaches.

Tool #2: Bloomerang CRM Integration

Once QuickBooks Online handles the core bookkeeping, the next step is to automate donor data. Bloomerang, a leading donor-management CRM, syncs seamlessly with QBO—creating a centralized hub for fundraising analytics and reducing hours of manual data entry each month.

Key Benefits of Bloomerang Integration

• Centralized Donor Profiles: Instead of downloading spreadsheets from gala events or capital campaigns, Bloomerang maintains a real-time database of donors, gifts, pledges, and communication history.

• Automated Gift Entry: Through the QBO connection, new gifts recorded in Bloomerang automatically post to the designated QBO income accounts—eliminating the need to manually re-key donor information.

• Real-Time Fundraising Analytics: Fundraisers and development directors can view campaign progress dashboards without waiting for month-end closes.

• Improved Data Accuracy: Automated field mapping reduces human errors (e.g., entering a $5,000 grant into the wrong fund).

Jeremy’s Configuration Tips for Bloomerang

1. Map Bloomerang Gift Categories to QBO Income Accounts:

   • “I ensure that every Bloomerang gift category—general donation, event ticket, restricted grant—is mapped to its corresponding QBO account,” Jeremy says. This ensures revenue is accurately tracked by program or fund.

2. Segment Donors for Targeted Campaigns:

   • Use Bloomerang’s tags and segmentation features to group donors by giving level, event participation, or past engagement. This data can drive targeted appeal letters and stewardship campaigns.

3. Schedule Regular Data Syncs:

   • While the integration can be set to sync automatically, Jeremy recommends scheduling a weekly manual review in QBO to confirm that large gifts and major grants flow through correctly (especially when gift pledges are involved).

4. Leverage Campaign Reporting:

   • Bloomerang’s campaign reports allow accounting teams to see how much each campaign raised versus expenses logged in QBO—providing a quick ROI snapshot.

By implementing Bloomerang alongside QuickBooks Online, you create a cohesive ecosystem where fundraising data and financial data “talk” to each other. This end-to-end integration accelerates month-end closes and helps your nonprofit clients make real-time decisions based on accurate donor metrics.

Tool #3: Blackbaud for Advanced Grant Tracking

For larger nonprofits or organizations with multiple grant sources, Blackbaud offers a robust suite of modules—designed to track grant awards, budgets, and constituent relationships at scale.

Why Blackbaud Is Essential for Grant-Heavy Organizations

• Grant Module Setup: Blackbaud’s grant module allows you to record each grant award’s total amount, award period, and reporting requirements—then allocates revenue recognition over the grant’s lifecycle.

• Budget vs. Actual Comparisons: Track actual expenses against grant budget lines. If a program budget allocates $50,000 for “Community Outreach,” Blackbaud will compare actual spending to that line item in real time.

• Constituent Analytics: By combining donor profiles and grantor relationships, Blackbaud gives development teams insight into which foundations or corporate partners are most engaged.

• Audit-Ready Reporting: Blackbaud’s robust reporting engine can produce auditors’ reconciliation reports, grant compliance worksheets, and donor acknowledgment summaries.

Jeremy’s Recommendations for Blackbaud Implementation

1. Select Modules Based on Client Size:

   • “I typically recommend Blackbaud’s Grantmaking module for nonprofits with at least $500,000 in annual grant revenue,” Jeremy explains. Smaller organizations may rely solely on QBO and Bloomerang until they reach that scale.

2. Configure Fund Codes Consistently:

   • Ensure that fund codes in Blackbaud match the class or location codes in QBO. This alignment is critical when running consolidated financials or generating combined statements.

3. Automate Grant Award Journals:

   • Blackbaud can post journal entries directly into QBO (or export them as .QBO files). Jeremy sets up a daily or weekly batch process to send Grant income entries into QBO automatically—minimizing manual intervention.

4. Train Key Users on Reporting Dashboards:

   • Beyond initial implementation, Jeremy holds monthly training sessions for finance directors and program managers to show them how to pull “Grant Budget vs. Actual” and “Grant Compliance” reports without relying on external consultants.

By adding Blackbaud to the QBO + Bloomerang stack, you create a high-functioning, automated environment where fundraising, grant management, and accounting data coexist. This level of sophistication attracts larger nonprofits that require robust audit trails, making your bookkeeping practice both scalable and in demand.

Best Practices for Integrating Nonprofit Software

Combining QuickBooks Online, Bloomerang, and Blackbaud into a seamless workflow requires meticulous attention to detail. Jeremy’s top integration best practices include:

1. Consistent Fund Labeling Across Platforms

   • Use identical fund names (and corresponding codes) in QBO classes, Bloomerang gift categories, and Blackbaud fund codes. This consistency ensures that revenue recognized in each platform aligns when you produce consolidated reports.

2. Regular Data Sync Schedule

   • Automate nightly or weekly syncs between Bloomerang and QBO, and between Blackbaud and QBO. Verify large grants manually to catch timing differences (e.g., a $100,000 award posted in Blackbaud should match a restriction release in QBO).

3. User Permissions & Access Control

   • Grant limited access to development staff in Bloomerang—so they can enter gifts but not modify fund accounting codes. Likewise, restrict QBO administrator rights to your bookkeeping team to prevent accidental changes to classes or locations.

4. Standardized Month-End Close Checklist

   • Include tasks like “reconcile Bloomerang gift totals to QBO revenue accounts,” “verify Blackbaud grant award entries,” and “run functional expense report in QBO.” Having a checklist ensures nothing falls through the cracks.

5. Documented SOPs & Training Materials

   • Create step-by-step standard operating procedures (SOPs) for each integration point. For example, “When a new grant is awarded, client should notify the bookkeeping team to set up the fund code in QBO and Blackbaud, assign the correct budget lines, and configure the data sync.”

Adhering to these best practices will minimize reconciliation issues, foster trust with nonprofit clients, and allow you to focus on strategic advisory work—rather than firefighting data inconsistencies.

Leveraging Your Niche for Marketing & Client Acquisition

Once you’ve mastered the software stack, the next step is to showcase your expertise and attract ideal nonprofit clients. Jeremy’s marketing insights include:

1. Adopt Nonprofit-Specific Vocabulary

   • Incorporate terms like “functional expenses,” “donor-restricted funds,” “IRS Form 990 compliance,” and “grantor reporting” across your website, blog posts, and LinkedIn profile. This not only signals expertise but also boosts your SEO for “nonprofit bookkeeping expert” searches.

2. Share Case Studies & Success Stories

   • Publish short blog posts or LinkedIn articles—titled “How We Helped Save 10+ Hours on Month-End Close for XYZ Nonprofit” or “Boosting Grant Renewal Rates by Improving Functional Expense Reporting.” Embedding screenshots of Bloomerang dashboards or QBO reports (with client permission) provides visual proof of your capabilities.

3. Obtain Thought Leadership Through Webinars & Workshops

   • Host free webinars such as “QuickBooks Online for Nonprofits: From Setup to Impact” or “Unlocking Bloomerang’s Power for Donor Analytics.” Promote these events on social media channels, use targeted hashtags (#NonprofitBookkeeping, #FundAccounting), and capture registrants’ emails for follow-up.

4. Leverage Referrals from Existing Clients & Networks

   • Jeremy’s first nonprofit clients came through his wife’s campus-based nonprofit network. Encourage satisfied clients to introduce you to peer organizations at local nonprofit roundtables or association meetings. Personal introductions carry significant weight in the nonprofit sector.

5. Optimize Google My Business & Online Directories

   • Ensure your practice is listed under categories such as “Nonprofit Bookkeeping,” “Fund Accounting Services,” and “Charity Accountant” on Google My Business, Yelp, and niche directories like NonprofitPro or Charity Village. Include your niche keywords in the business description.

By combining these tactics, you’ll steadily build a reputation as the “go-to” nonprofit bookkeeping expert. Over time, that SEO-driven traffic and word-of-mouth referrals translate into steady engagements, higher lifetime client value, and more mission-focused work.

Building a Remote-First, Mission-Driven Culture

As Jeremy’s firm grew beyond three employees, he faced the challenge of maintaining company culture in a fully remote environment. His strategies include:

• Annual In-Person Retreats:
  Each year, Jeremy’s team gathers for a two-day retreat where they refine the firm’s mission, vision, and “ideal client avatar” profile. During these sessions, they review nonprofit industry trends, celebrate recent client successes (e.g., helping a nonprofit secure a six-figure grant), and brainstorm process improvements. By investing in face-time annually, the team maintains alignment around shared values.

• Slack Channels for Informal Bonding:
  Separate Slack channels—such as #random, #client-wins, and #bookkeeper-hacks—encourage employees to share non-work content (DIY home office setups, local nonprofit volunteer opportunities) and celebrate personal milestones (birthdays, new pets). These informal touchpoints reinforce camaraderie and remind everyone that they’re part of a mission-driven collective.

• Family-Friendly Policies & PTO Guidelines:
  Jeremy ensures that after nonprofit clients close their fiscal year (April 30 for many), the entire team takes a one-week “decompression” period. This prevents burnout during peak season. He also encourages employees to prioritize family events—Jen’s annual “Family Giveback Weekend,” where the whole crew volunteers at a local soup kitchen, is a highlight.

• Inclusive Language & Mission-First Messaging:
  Instead of using “I” or “me,” Jeremy’s website copy and internal communications consistently apply “we” and “our” to reinforce that the firm partners with clients in achieving mission success. Job postings focus on alignment with nonprofit values—“Join our team if you believe in transparent, mission-driven bookkeeping.”

These culture-building practices not only retain top talent but also attract candidates who are passionate about the nonprofit sector. When your team genuinely cares about client missions, the result is higher quality service, deeper empathy, and a stronger brand reputation.

Real-Life Impact: Time Savings, Accuracy, and Mission Focus

The proof is in the numbers—and Jeremy’s clients have seen tangible benefits from adopting the three-tool ecosystem:

• Saving Over 10 Hours Per Month on Month-End Close:
  By using Bloomerang to sync donor gifts directly into QBO, one mid-sized charity reduced manual journal entries from 50 to fewer than five per month. This time savings allowed the finance director to volunteer as a board treasurer for a smaller nonprofit—furthering the organization’s mission.

• Securing a Major Grant Renewal Through Accurate Functional Expense Reporting:
  A community-based advocacy nonprofit relied on clean functional expense categories when presenting to its largest foundation. Because QBO was configured with proper class tracking and Blackbaud’s grant-tracking provided audited reports, the foundation renewed a $200,000 grant without requesting additional documentation.

• Real-Time Dashboards Leading to Faster Decision-Making:
  One environmental nonprofit used Bloomerang’s campaign analytics to see that their mid-year appeal was underperforming. By re-segmenting donors and launching a targeted follow-up email, they increased revenue by 15%—all before the quarter closed. The seamless integration meant finance didn’t need to compile spreadsheets; the team made data-driven decisions in real time.

• Enhanced Stakeholder Confidence Through Transparent Reporting:
  When board members requested up-to-date financials mid-quarter, the accounting team simply exported Blackbaud’s “Grant Compliance” report and QBO’s “Statement of Activities.” Presenting these side-by-side gave stakeholders confidence that funds were being used appropriately—bolstering trust and resulting in larger recurring gifts.

These examples underscore how the right software stack not only automates routine tasks but also empowers nonprofits to focus squarely on mission impact. As Jeremy often says, “When bookkeeping isn’t a monthly headache, you can spend more time on fundraising, program delivery, and community engagement.”

Looking Ahead: Exit Planning & Long-Term Vision

Niche specialization and software-driven efficiency don’t just benefit day-to-day operations—they also enhance long-term business value. Jeremy’s vision includes:

• Retiring by Age 50:
  Having built a firm that consistently serves nonprofits with predictable revenue, he plans to position the business for either an employee buy-out or sale to a larger accounting firm. With documented SOPs, standardized software processes, and a steady book of nonprofit clients, the firm will be an attractive acquisition target.

• Touring Nonprofits to Volunteer & Generate Marketing Content:
  In what Jeremy calls his “pipe dream,” he envisions taking a sabbatical month to travel the country—volunteering at nonprofit partner organizations, interviewing staff, and capturing video testimonials. These stories will serve as powerful social proof, showcasing how niche bookkeeping solutions directly support nonprofit missions.

• Expanding Service Offerings Without Losing Focus:
  While bookkeeping remains the core service, Jeremy plans to add “Grant Write-Along Workshops” and “Board Training on Financial Literacy”—leveraging the Blackbaud and Bloomerang ecosystems to create ancillary revenue streams. Each service still revolves around the software stack, preserving the firm’s nonprofit focus.

By integrating these future plans into marketing collateral—“Exit strategy for nonprofit bookkeeping firms” and “How to build a mission-driven, sellable accounting practice”—Jeremy ensures his firm’s story remains aspirational and SEO-optimized for searchers interested in scaling or selling their boutique accounting businesses.

Conclusion & Call to Action

Nonprofit bookkeeping doesn’t have to be a maze of spreadsheets and manual journal entries. By niching into nonprofit accounting and adopting the three-tool software ecosystem—QuickBooks Online, Bloomerang, and Blackbaud—you can:

• Reduce reconciliation headaches and close the books 50% faster.

• Provide real-time fundraising and grant-tracking insights that delight boards and donors.

• Position yourself as the go-to expert for mission-driven organizations, commanding higher fees and attracting ideal clients.

Ready to transform your nonprofit’s financial management? Listen to Jeremy Van Groll’s full episode, “Nonprofit Bookkeeping Secrets: The 3 Software Tools You Didn’t Know You Needed,” wherever you get your favorite podcasts. Subscribe for weekly episodes that unpack the latest tips, tools, and strategies for nonprofit finance professionals. Press play now and start streamlining your practice today.

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