More than a year ago, I joined the LinkedIn group “The Non-Profit Professionals Forum.” I have been following a thread there about accounting software for non-profits Read the rest of this entry »
Circular A-133 is issued by the U.S. Government Office of Management and Budget (OMB) and is subtitled “Audits of States, Local Governments and Non-Profit Organizations”. It is addressed primarily to auditors and gives guidance on many aspects of the audit process and government requirements. You can read the whole thing here . If you are a non-profit accountant you do not need to read the whole circular, but you do need to know a few key points.
Circular A-133 Audit Tips for Non-Profit Accountants Read the rest of this entry »
Thanks for coming by the blog. I’m loading it up with articles to help you get through your day as a non-profit accountant. I’ve started to tackle the topics that I think are important. I want www.nfpaccountinghelp.org to be your go-to resource, and to do that I need your input. Give me your burning non-profit accounting questions, and I will share the answers with your fellow readers. Not only do you get your questions answered, but you also get a chance to win a copy of my book!
Here’s how:
Contest Rules
1) Submit your Not-For-Profit accounting question in the comments section below. Remember there are no stupid questions. If you do not know the answer, there are plenty of others who do not either.
2) When we reach 20 questions from 20 individuals (spammers excluded), we will start answering them in upcoming posts.
3) If your question is the first one we answer you win! You’ll receive a signed copy of Not-For-Profit Accounting Help: A Very Practical Manual that you can keep by your side for easy reference.
4) The winner will be announced on the blog, so keep your eyes peeled. If your question gets answered first, comment on it to claim your prize!
So, let me hear those questions…
All of the accounting software programs I have worked with can reproduce a journal entry, yet I have worked with too many bookkeepers and accountants that do not utilize this feature. A recurring journal entry saves you time and headache on entries that you know you will make often, and helps prevent errors. Once you know how to use them, you will wonder how, and why, you ever did without.
The process is slightly different, but the basics of creating and using memorized JE’s are the same regardless of which accounting software program you use. Start with our guide, then take a few minutes to read over your software’s manual or “Help” pages. Then you’re ready to dig into dig in.
Here is how it works: Read the rest of this entry »
We have already discussed a couple of instances of fraud in non-profits, including a booster club treasurer with no accountability, teachers with unfettered use of credit cards, and a pastor skimming off the top of the school’s funds. Sadly these cases could have been avoided.
The key to fraud protection is effective internal control. This often consists of simple systems. For instance, two pairs of eyes on all bank transactions makes it easy to spot errors, and hard to make funds disappear. Requiring original receipts for all reimbursable items creates a paper trail that cannot be used for duplicate reimbursements, and would stand up to scrutiny in case of an audit. These are not complex transactions, but they do require cooperation.
Ultimately, as the accountant for your non-profit organization, you are responsible for ensuring the proper implementation of effective internal control measures. It would seem getting cooperation would be easy, as the procedures are rather simple. Yet ask any accountant who has tried to track down receipts, or get administrators to produce and review a weekly report, and you will soon come to a different conclusion. So how do you get the board, employees and volunteers all on board with policies they think are nit-picking, pointless paperwork? The short answer: communication. Read the rest of this entry »
When a question arises concerning your organization’s tax-exempt status, or preparing or filing your 990, where do you turn for an answer?
Double-entry bookkeeping was invented hundreds of years ago, but the formal documentation and acceptance of US accounting standards is less than one hundred years old.
Since the 1930s, Generally Accepted Accounting Principles (GAAP) have evolved through a mish-mash of pronouncements from several organizations. The products of their labors were identified with the initials of each group and included: Read the rest of this entry »
Which one is better? Let’s see….
I shudder when my clients utter the phrase “credit card” – it’s rare that I’ve seen an organization where employees use them appropriately, and turn in all their receipts on time so the accountant can post them before the bill is due. Here is a new wrinkle, sent in by a reader. (Some details have been changed to protect privacy.)
The executive director (ED) has a personal credit card, to which he charges both personal and business expenses. Each time the bill is due, the organization pays the whole bill (!) Read the rest of this entry »
I never thought I’d say this, but you might want to prepare your non-profit organization’s form 990 yourself. The going rate for form 990 -EZ preparation (in my part of the country) is $500-$1,000, and significantly more for the long form. Recently I heard from a PTA volunteer treasurer who was able to do it for just $30. Read the rest of this entry »