4 Great Reasons To Outsource Your Nonprofit Bookkeeping

Accurate, reliable bookkeeping is key to the success of any growing business. Unfortunately, most companies easily fall behind because of other priorities, and hiring and retaining good bookkeeping talent in-house can be tough. With our team’s bookkeeping vancouver background in arts and community organizing, we know what it means to run a successful non-profit—and how hard it can be. A charity’s annual information return, form T3010B, is to be filed within six months of the end of its taxation year.

• You may hire a dedicated full-time or part-time staff member, ask a volunteer, assign the duties to an executive position, ask a firm for an in-kind donation of their services, or outsource the responsibility.
• At Enkel, we have years of bookkeeping experience working with business owners and nonprofit organizations in Vancouver.
• There are several ways nonprofit organizations can fulfill the duties of nonprofit bookkeepers and accountants.
• Accurate financial reporting allows you to make programming decisions based on numbers and provides your Board with the information it needs to trust management is executing on its agenda.
• Our team of Certified Payroll Professionals will ensure accurate and timely payroll processing, and help you with ROE preparation, T4 management, statutory remittances, and tax reporting.

Where this method is used, the organization will need separate revenue, expenditure, asset and net asset (equity) accounts for each restricted fund as well as similar accounts for all unrestricted funds collectively. On the expenditure side the major bookkeeping issue is the level of detail in expenditures that the organization might want to track. For many not-for-profit organizations, payroll costs are by far the largest expenditure. https://www.bookstime.com/ Reporting salaries and wages as one number might not be informative to the users of the statements; they would prefer to see the expenditure allocated to the various activities the organization engages in. ​ The Canadian Red Cross Society publishes its financial statements annually. This extract is intended only to show the nature of funds that an organization may establish and is not intended to be generally representative.

Reconcile your bank statements

Most not-for-profit entities do not carry on a business and receive their revenue in the form of contributions from governments, private agencies and individuals. Many accounting software programs allow you to generate financial statements automatically, such as a statement of financial position. This reduces the possibility of errors and guarantees reliability and accuracy. Of course, you can always generate financial statements manually, but this takes a lot of time and skill.

• Fortunately, nonprofit professionals don’t have to worry about your financial information if you choose FreshBooks.
• If you have the spare time to manage your work and some of the accounting each month but need a little extra help, a part-time bookkeeper might be a good solution for your Nonprofit.
• My financial health check is designed to help small to medium-sized businesses and nonprofits uncover opportunities for financial improvement.
• You want to ensure your back office is run smoothly and efficiently to ensure the errors & omissions policy that protect you is always paid up and that your financial reporting is handled accurately and compliantly.
• It’s time to go from inaccurate reporting and unclear processes to confident systems and compliant accounting.
• Some are unrestricted net assets and some are considered restricted net assets.
• In addition to paying employees, office & equipment expenses, and technology costs, nonprofits also need the right processes and procedures in place for audit readiness and mitigating watchdogs.

It is not unusual for not-for-profit organizations to receive in-kind contributions of goods and services. These should be valued at fair value, where this can be reasonably ascertained. The major distinguishing feature of the not-for-profit sector is that fund accounting is often used. Each fund comprises a set of self-balancing accounts (that is, debits equal credits within each fund). Financial statements provide insight into how much money your nonprofit has, where you spend it, and how it’s used. The option you go for should also enable you to do fund accounting (i.e., use different accounts for different purposes).