Non-profit organizations have a duty to be financially responsible and transparent for their board, themselves, their stake holders, and the government. This is no easy task, but a little organization can go a long way in helping non-profits to have success with regards to their finances and financial reports. This week’s focus is on keeping all of the necessary tasks organized and methodical, but you can visit here to learn more general information about what makes up an effective financial report to get you started.
It is easiest to stay current on needed accounting tasks by splitting them into what needs to be done more and less frequently. A checklist can help guide your organization in knowing what tasks need to be done and when to keep financial information up-to-date and ready for needed submissions to the government and people involved in the organization. Beck and Company Certified Public Accountants and Business Advisors can assist you with this and with your ongoing nonprofit and accounting needs.
Daily and Weekly Reminders to Keep at the Forefront
- Each day’s tasks and meetings are established and prioritized (important ones are done first and others are scheduled around them).
- The organization’s goals and mission should be reflected in and aligned to the work done.
Monthly Financial Checklist- Focus on the Budget and Collaboration
- Review and compare budget projections and actual results: This will help you be sure that your revenue is sufficient to take care of expenses and will clarify how last month’s financial activity will impact future months.
- Make adjustments based on these results: Your review and comparison should lead you to make immediate decisions about future actions based on your data.
- Trim the budget’s fat: Analyze each line item to cut unnecessary or underutilized expenses.
- Analyze costs as a team: Meet together as a budget task force to make decisions regarding variable costs to either remove them completely or determine if they should become fixed costs. Focus on budget efficiency without compromising the quality of your organization.
- Submit grant proposals: Be aggressive in seeking more funding not only to sustain your organization but also to expand it.
- Collaborate: Look for businesses and other non-profits to form partnerships with. Businesses with shared interests may support your cause, and other non-profits can be a great source of shared networking and fundraising efforts.
Quarterly Checklist- Focus on Important Board and Government Accounting Requirements
- Report payroll taxes to the IRS: Submit the required Form 941 which is the employer’s quarterly federal tax return.
- Prepare financial statements for the board: Knowing the current financial status for future planning and to fix potential finance problems is essential.
- Submit financial status reports and progress reports for government grants and contracts: The government expects to know the current state of expenditures and what has been accomplished versus what was expected to be accomplished.
- Meet with the board: It is a federal requirement to meet with the board of directors at least four times per year.
Annual Checklist
- Submit Form 990: This annual information report should be submitted to the IRS to report on financial activities, sources of income, and spending.
- Release payroll reports: The Social Security Administration, IRS, and the employees need to know this information. This could include Form 941, W-2s, W-3s, and 1099s.
- Get an audit of your financial statements: A CPA’s audit will serve as a second opinion regarding the validity of your finances and adds credibility to your accounting practices.
- Create next year’s budget task force: Seek out staff and board members skilled to contribute to the assessment of the budget.
- Organize a grant and contract application team: This important team researches, develops, and submits these applications for your organization.
- Re-evaluate your goals: Prepare for your annual board meeting by evaluating achieved, ongoing, and new goals that should be put into place.
In addition to resources such as this financial checklist, we offer many nonprofit services to organizations just like yours. We would be happy to assist you with your specific needs.