Understanding those tips for proper bookkeeping/ accounting in your Nonprofit is as important as running a nonprofit organization on those golden rules that guide complete and accurate recordings and reporting, aiding right business decision making. Be it fundraising strategies and other fund generating sources, the following accounting tips can help you keep your Nonprofit on the right track;
Choosing the Right Business Accounting Solution for Nonprofit
Most Business Accounting Solutions such as QuickBooks, Sage accounting software and so on can help your nonprofit keep real time and accurate records. These business accounting solutions are surprisingly easy to use business solutions, especially for Small and Medium Enterprise both in profit and Nonprofit businesses, that wish to keep a good track of all their financial transactions and keep workflow efficient and faster.
In addition, automation of accounting functions with Business Solutions help to improve efficiency and minimize human errors that comes with consequences of failing to follow proper nonprofit accounting requirements, which can result into tax and other business implications.
Always ensure that Your Business Solution/Software is up to date and properly set up to suit your Nonprofit.
This is a critical area where most Nonprofits consider the possibility of outsourcing this function to Professionals or Consultants. A good bookkeeping software should be able to track and report funds accounting by the nature and class of funds such a Nonprofit organization maintains, in line with requirements of the Financial Accounting Standard Board and it applies to all tax-exempt nonprofit organizations.
As Chart of Account (COA) is set up and workflows are designed, the funds can be linked to recurring transactions. Therefore, as soon as the bookkeeping software is configured to your settings, tracking revenue and expenses connected with each fund will be easier.
Other measures include;
- Schedule time for audits and reviews of certain accounting records, at specific intervals such as weekly, monthly or quarterly and annual reviews.
- Prepare for audits by securely keeping records of financial statements and other relevant documents in files that are organized by date and purpose.
- Be a good tax complaint to keep you away from red flag could attract tax audit
- As a nonprofit, finding new donors is strategic, however, following up on your existing or past donors is equally important to maintain reliable cash flow and budgeting.
- Setting up plans for cash donations by maintaining sound internal control and track reference records.
A Nonprofit on the right track presents fund reports that fairly represent the performance and fund position of the entity; which gives the stakeholders and donors the courage to keep their stakes with Nonprofit. Doing otherwise is a bad business and jeopardizes the future, including the Going Concern of the Nonprofit. Always start on the right track.
Do You Need Accounting Help?
Consistent up to date and cleaning of accounting records for sound business decision making, may be posing some difficulties when you are preoccupied with other business functions. Is it time to consider independent professionals because of certain technical complications that could occur along the line? It could also be daunting, time-consuming procedures. Not recording correctly and poor monitoring can cause complications and confusion.
At Fritznoble , we assist our clients on the best available options that suit their businesses...Reach out/ Outsource With Us… If Accounting works are bothering you, then it’s time you outsourced your accounting and bookkeeping requirements, this will help you concentrate more on core competencies of your business; with a team of professionals to help.
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