5 Helpful Accounting Tips for Non-Profit Organizations

Currently, an estimated 1.5 million accounting firms saskatoon are operating. That’s 1.5 million organizations that are accumulating cash flows—both positive and negative—and, naturally, will need to do at least some accounting.

Accounting is especially important for non-profits. Not only will these organizations need to have their books organized for obtaining their 501(c) designation, but they will also likely need to have well-organized finances to appeal to new donors.

Unfortunately, there are still many people in charge of non-profit organizations that have little accounting knowledge or experience. This can cause major financial issues for some non-profits and make it much more difficult for them to achieve their mission statement.

If you are responsible for bookkeeping Saskatoon at a non-profit organization, be sure to keep these important tips in mind:

1. Use Accounting Software 

Today, you’ll several accounting software choices are available than ever before. And many of these programs are made specifically for non-profits. In addition to QuickBooks, consider using MIP Fund Accounting, NetSuite, and other tools made for this specific industry. Investing in better accounting software can help you save time and reduce errors.

2. Keep Multiple Eyes on the Books 

There is no need to assign all accounting activities to just one member of your organization—in fact, many people would argue that doing so would actually be unethical. Make sure that multiple people play a role in the accounting process, allowing you to catch any oversights and increase organizational transparency.

3. Learn About Relevant Regulations 

One of the benefits of being a non-profit organization is that you will be able to avoid paying certain taxes. The General Accepted Accounting Principles (GAAP) and 501 (c) requirements established by the IRS will both affect how you will need to manage your books. Failing to comply with these regulations can result in some pretty serious issues, so it might be time to either hire an accountant or hit the books.

4. Record Transactions as They Occur 

It can be tempting to save your accounting and bookkeeping duties for the end of the month (or even the end of the quarter)—we get it, life gets in the way. But procrastinating your bookkeeping duties will increase the risk of making a mistake or missing a possible deduction. Whenever money comes in or goes out of your organization, you should have some record of that event occurring. Accounting software helps make this easier.

5. Don’t Be Afraid to Ask for Help 

Not everyone is an accounting expert. In fact, very few people can legitimately claim they are. Rather than spending your limited time on your bookkeeping duties—meaning time away from fundraising and other important activities—consider hiring an outside accountant. There are many saskatoon accountant available to choose from. Some even specialize in helping non-profit organizations and will likely be able to provide their services for much less than you initially assumed.

With the right resources and bookkeeping practices in place, you can be one step closer to achieving your organizational mission.

For more information, visit: https://www.bbllp.ca/

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