five accounting tips for nonprofits
Post on 15-Apr-2017
60 Views
Preview:
TRANSCRIPT
F IVE
ACCOUNT ING
T IPS FOR
NON -PROF I TS
GURUPANDYAR .ORG
L IKE PR IVATE SECTOR FOR PROF IT COMPANIES ,
NONPROF IT ORGANIZAT IONS NEED TO KEEP TRACK OF
THE IR F INANC IAL RECORDS . IN ORDER TO BEST KEEP
TRACK OF THE ORGANIZAT IONS ’ F INANCES , I T WILL BE
VERY IMPORTANT TO FOLLOW A NUMBER OF STEPS .
WITH THE PROPER ACCOUNT ING PRACT ICES ,
NONPROF IT ORGANIZAT IONS WILL BE IN POS IT ION TO
STAY F INANC IALLY SOLVENT . THEY WILL ALSO BE ABLE
TO ENSURE THAT THEY ARE COMPL IANT WITH
GOVERNMENT REGULAT IONS AS WELL . IN ORDER TO
BEST KEEP TRACK OF THE IR F INANCES , NOT FOR
PROF IT ORGANIZAT IONS WILL WANT TO FOLLOW SOME
T IPS .
GURUPANDYAR .ORG
T IPS FOR NON -PROF I TS
GURUPANDYAR .ORG
The first accounting tip for nonprofits is to use a
bookkeeping system that works best for them. There are
two main types of bookkeeping methods that nonprofits
need to keep in mind. First, there is single entry
bookkeeping which entails entering income and expenses.
It is the most simple financial recordkeeping system and is
ideal for those with little to no accounting experience.
Nonprofits can also use double entry bookkeeping which
consists of entering transactions as both a debit and a
credit. For every debit, there must be a credit transaction
that offsets it. With the proper bookkeeping system, not for
profit organizations can keep better records of their
finances.
T IP # 1
ANOTHER T IP FOR NOT FOR PROF IT ORGANIZAT IONS I S
TO USE SPEC IF IC SOFTWARE . THERE ARE A NUMBER
OF DIFFERENT SOFTWARE PACKAGES THAT ALLOW
ORGANIZAT IONS TO RECORD F INANCES . FOR A
NONPROF IT , I T I S A GOOD IDEA TO USE SOFTWARE
THAT SPEC IAL IZES IN NONPROF IT ORGANIZAT IONS .
SOFTWARE PACKAGES SUCH AS QUICKBOOKS OFFER A
NOT FOR PROF IT F INANC IAL MANAGEMENT SOFTWARE
OPT ION FOR ORGANIZAT IONS TO PURCHASE . AS A
RESULT , THESE ORGANIZAT IONS CAN GET THE R IGHT
SOFTWARE THEY NEED .
GURUPANDYAR .ORG
T IP #2
GURUPANDYAR .ORG
Not for profit organizations can also use
spreadsheet software. Using this type of
software enables them to have more control
over their transactions. They can use a
number of formulas to make calculations as
well as organize financial information. The
spreadsheets will provide organizations
with another way to keep very accurate
financial records.
T IP #3
ANY NONPROF IT ORGANIZAT ION THAT
OPERATES WILL NEED TO LOOK INTO POSS IBLE
TAX ADVANTAGES . FORTUNATELY FOR THESE
PART ICULAR ORGANIZAT IONS , THERE ARE A
NUMBER OF TAX INCENT IVES THAT CAN BE
USED TO HELP SAVE MONEY . TAK ING
ADVANTAGE OF TAX BREAKS WILL HELP THE
NONPROF IT ORGANIZAT ION KEEP MORE FUNDS
SO THAT THEY HAVE THE RESOURCES TO MEET
THE IR OBJECT IVES .
GURUPANDYAR .ORG
T IP #4
GURUPANDYAR .ORG
As well as using a bookkeeping system and using tax advantages,
nonprofit organizations will need to have a good understanding
of their finances. Therefore, it will be important for these
organizations to put together financial statements. With these
particular documents, the nonprofit organization can find out
things such as their net worth as well as if they have a surplus or
deficiency. On documents such as a balance sheet, not for profit
organizations will be able to determine how much they have in
assets and liabilities. This will help them know more about the
amount of financial resources they have available. An income
statement will help them find out how much funds they are
making and how much they are spending. This will help a
nonprofit determine whether or not they are financially solvent.
T IP #5
THANKS FOR
YOUR T IME !
GURUPANDYAR .ORG
top related