Accounting System Setup and Workflow Design in Xero or QBO

We would like support configuring an accounting system for a small nonprofit that is transitioning into independent operations. Xero is our preferred platform because we have already begun learning it and the bookkeeping firm we hope to work with later prefers Xero. However, we are open to QuickBooks Online if a volunteer has strong nonprofit accounting setup experience and can help us determine that it would be a better fit for our needs.

The project would include setting up a nonprofit chart of accounts, grant and contract tracking structure, expense categories, documentation templates, reporting templates, simple monthly bookkeeping workflows, and guidance for reflecting payroll activity from Gusto in the accounting system.

Because we are also developing earned revenue streams, including a product for sale and other fee-for-service offerings, we would like the system to be able to track both contributed and earned revenue clearly. We would also appreciate written workflow documentation and a short training session for the executive director or designated staff so we can maintain the system until we are able to hire ongoing bookkeeping support.

A clean, funder-ready accounting system will help Peacemakers’ Alliance track restricted and unrestricted funds, monitor grant and contract budgets, distinguish contributed and earned revenue, generate accurate reports, and prepare tax-ready records. This will protect limited staff capacity and strengthen our ability to steward public, philanthropic, and earned revenue responsibly, allowing our team to focus more fully on empowering incarcerated and formerly incarcerated people through social-emotional learning, peacebuilding, and nonviolent conflict resolution skills.

We have already begun learning Xero and selected it as our preferred platform because it aligns with the bookkeeping firm we hope to work with once we have funding. We are open to QuickBooks Online if a volunteer has strong nonprofit accounting setup experience and can help us determine that it would be a better fit. We currently use Gusto for payroll and can provide current budget materials, sample grant and contract reporting needs, and access to relevant financial records. Staff leadership is ready to collaborate with the volunteer, clarify priorities and timelines during the initial project conversation, and implement the documented workflows after training.