4 Best Practices For Nonprofit Accounting
As an accountant for a nonprofit organization, your responsibilities differ from those of a for-profit business. Therefore, it is imperative that you are up to speed on all of the rules and regulations that apply to your business. Here are a few best practices to follow for nonprofit accounting.
Use the Correct Software
Since nonprofits handle record keeping and tax payments differently than other companies, it is essential that you use software that is developed specifically for nonprofits, such as Abila MIP Advance. Good software will help you to stay organized and run the most accurate reports.
Keep Up With Current GAAP Guidelines
GAAP, or generally accepted accounting principles, are the standard set of rules of corporate accounting. These tend to change occasionally, and it is your responsibility to ensure that you are well-versed and up to date with them.
Understand Tax Responsibilities
Since you are not a typical for-profit organization, you are not required to pay the same types of taxes. Nonprofits are exempt from paying federal income taxes, as well as paying sales and property tax. However, there are instances where you are required to pay taxes, such as when you make money from something … Read more