Case Study: Strengthening Financial Operations for a Growing Nonprofit Through Outsourced Accounting & Strategic Finance Support

Nonprofits run lean by design, but lean doesn’t mean chaotic. When financial processes are unclear, reporting is inconsistent, or audits become a scramble, it drains executive time and undermines board confidence.

This case study highlights how Lumiere Strategies partnered with a mid-sized nonprofit to build a reliable, compliant, and scalable financial workflow—covering outsourced accounting, month-end close, board reporting, audit support, 990 prep, and ongoing strategic advisory.

Client Background

The organization had a strong mission, steady fundraising, and an engaged board. But behind the scenes, the finance function was stretched thin:

• The internal team handled day-to-day tasks but lacked formal accounting processes.

• Month-end close was inconsistent and often delayed.

• Board reporting varied each quarter depending on who built it.

• The annual audit required a long list of catch-up work.

• 990 preparation with the CPA firm was stressful each year due to missing schedules and unclear documentation.

They needed a partner who could bring order, discipline, and strategic clarity—without hiring a full in-house finance team.

The Engagement

Lumiere Strategies stepped in as the nonprofit’s outsourced accounting and finance partner, handling both operational accounting and high-level financial management.

Monthly Accounting & General Ledger Management

We implemented a structured month-end close process that included:

• Bank, credit card, and investment reconciliations

• Grant tracking and restricted fund accounting

• Comprehensive journal entry review

• Standardized AP and AR workflows

• Documentation of accounting policies and procedures

This created accurate, timely, and GAAP-aligned financials every month.

Strengthening Financial Processes

Lumiere rebuilt the organization’s workflow from the ground up:

• Implemented approval workflows for expenses and purchases

• Created grant allocation templates and revenue recognition schedules

• Standardized chart of accounts for nonprofit reporting

• Introduced digital document management for audit-ready files

• Established monthly variance analysis and internal budget tracking

The result: financial operations became structured, consistent, and far easier to manage.

Improved Board Reporting & Financial Transparency

Board members wanted clarity, not 60-page printouts. Lumiere redesigned the reporting package to include:

• High-level financial dashboard

• Budget-to-actual reporting by program, grant, and department

• Cash flow overview and liquidity analysis

• Key ratios and trends relevant to nonprofit health

• Narrative analysis to explain performance and variances

Board meetings became more strategic—and far less about deciphering spreadsheets.

Managing the Annual Audit Process

Instead of the staff scrambling each year, Lumiere:

• Prepared comprehensive audit schedules

• Managed PBC (Prepared-By-Client) lists

• Coordinated directly with auditors

• Provided detailed supporting documentation

• Ensured grants, restricted funds, and deferred revenue were properly reflected

• Resolved all audit questions and walked the board through the results

For the first time in years, the audit was on time, low-stress, and clean.

Streamlining 990 Preparation With the CPA Firm

990 prep is usually painful because information is scattered. We fixed that. - Lumiere delivered:

• 990 aligned financials for the CPA

• Compensation disclosures and board governance data

• Grant activity and program service reporting

• Year-end financial schedules that tied cleanly to the audit

• Review and QA of the final 990 draft

The filing process went from a scramble to a smooth, predictable workflow.

Additional Services That Elevated the Partnership

Beyond core accounting, Lumiere supported the nonprofit with services that strengthened its long-term financial position:

• Budget Creation & Mid-Year Forecasting

  • Multi-scenario budgets, grant-specific forecasts, and strategic outlooks for programming, development, and general operations.

• Grant Compliance & Fund Tracking

  • Clear allocation methods, restricted fund rollforwards, and revenue recognition aligned with grant agreements.

• Internal Controls & Finance Policies

  • Documented policies for expense approvals, purchasing, credit cards, payroll, and grant expenditures.

• Cash Flow Planning & Scenario Modeling

  • Forward-looking tools that helped leadership plan staffing, programs, and fundraising efforts.

• Strategic Finance Support for the Executive Director

  • Ongoing financial partnership, board prep coaching, and modeling for new initiatives.

The Results

Within the first year, the nonprofit saw measurable improvements:

• Reliable month-end close completed within 10 business days

• Consistent, high-quality board reporting each quarter

• Dramatically smoother yearly audit with fewer adjustments

• Timely, accurate 990 filing

• Clear financial processes that reduced staff workload

• Improved confidence from the board and executive leadership

The organization moved from reactive to proactive—operating with financial discipline and transparency worthy of its mission.

Final Thoughts

Nonprofits deserve the same financial clarity and operational strength as any business. With the right outsourced accounting partner, they can operate with confidence, meet compliance requirements, and position themselves for sustainable growth.

This engagement is a great example of how Lumiere delivers structure, visibility, and strategic financial leadership—so nonprofit teams can stay focused on the work that truly matters.