When small business owners think about contributions to their business, they usually think in terms of cash - money spent, money earned, money saved. But there’s another type of contribution that often goes unnoticed, even though it can be incredibly valuable.

 

It’s called a Non-Financial Support (NFS) contribution, and chances are, you’re already making them - whether you realize it or not.

 

What is a Non-Financial Support (NFS) contribution?

In simple terms, an NFS contribution is value added to your business that isn’t cash.

This can include:

• Your time and expertise as an owner
• Professional services you receive at little or no cost
• Use of space, equipment, or technology
• Advisory support, mentoring, or strategic guidance
• Services exchanged through partnerships or bartering

No money changes hands - but real value is still being created.

 

Why most business owners don’t think about this

Most small and mid-sized business owners don’t label these as “contributions.” They see them as:

• “Just part of running the business”
• “Something I’ll deal with later”
• “Not worth tracking”

And for many businesses, that’s perfectly fine - until it’s not. NFS contributions become especially important when your business is:

• Applying for grants or funding
• Participating in economic development or industry programs
• Working with nonprofits or government entities
• Receiving subsidized or donated professional services
• Entering strategic partnerships
• Investing significant owner time instead of cash

 

In these situations, NFS contributions may:

• Strengthen funding or grant applications
• Satisfy matching or participation requirements
• Demonstrate commitment and operational capacity
• Help explain why cash flow looks the way it does
• Clarify where your business is truly investing resources

In other words, they help tell the full story of your business.

 

Here are a few examples that resonate with many of our clients:

• A business owner spends hundreds of hours launching a new service instead of hiring help
• A CPA, attorney, or consultant provides discounted or pro bono services
• Office space or equipment is provided by a partner at no cost
• Two businesses exchange services instead of paying cash
• Advisory board members donate their time and expertise

These contributions don’t show up clearly on a profit and loss statement, but they absolutely affect growth, sustainability, and decision-making.

 

Do all businesses need to track NFS contributions? No - and this is important.

If your business:

• Is not applying for funding
• Is not in a regulated or grant-adjacent industry
• Is operating simply and profitably
• Has no strategic partnerships tied to services or support

Then formal tracking may not be necessary.

But understanding them still matters. Why? Because many owners underestimate how much time, effort, and value they’re contributing - and that can lead to:

• Burnout
• Poor pricing decisions
• Underpaying yourself
• Misjudging the true cost of growth

 

Where a proactive CPA and advisor adds value

This is where advisory work goes beyond compliance.

We help clients:

• Identify where non-financial contributions are happening
• Decide whether they need to be documented or valued
• Understand how owner time impacts profitability
• Prepare properly for grants or funding conversations
• Make strategic decisions about when to invest time vs. cash

The goal isn’t to overcomplicate your business - it’s to give you clarity.

The bottom line: Non-Financial Support contributions aren’t something every business needs to obsess over.

But for growing small and mid-sized businesses, they can be the difference between:

• Guessing and planning
• Feeling busy and building value
• Working harder and working smarter