2016-12-09 00:00:00Managing a NonprofitEnglishLook at essential bookkeeping tips for non-profit organizations. Review basic differences between for-profit and non-profit accounting.https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/03/Small-Non-Profit-Worker-Organizes-Proofs-Of-Income-And-Outgoing-Funds.jpgAccounting Tips: Bookkeeping Basics for Small Non-Profits

Accounting Tips: Bookkeeping Basics for Small Non-Profits

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If you run a non-profit organization, you need to keep track of all incoming and outgoing funds. In particular, you should track and keep receipts for all expenditures and petty cash disbursements. As you collect funds from donors or through other venues, you should meticulously record these amounts. If you issue receipts, ensure that you understand the Canada Revenue Agency’s expectations.

Basic accounting methods tend to be the same between non-profit organizations and businesses, with a few key differences. In particular, businesses tend to generate balance sheets, which include owner equity and assets, while non-profit organizations create statements of financial position. These statements outline the organizations assets and liabilities to create a picture of its financial health. Finally, every year, you should file a T4117, Non-Profit Organization (NPO) Information Return. Make sure to maintain all records for at least six years.

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Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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