Hughey's Debits & Credits: Bookkeeping. Payroll. Taxes.

All posts tagged fiscal

Form 990You did it!  You’ve sent out your W-2s to employees and ready to relax, right? Not so fast!  Have you completed Form 990?  Not sure what that is? Keep reading.

Form 990 “Do I have to do this?”

Yes! Even though you aren’t required to file income tax returns, the IRS still wants to know about your organization. Form 990 gives the IRS access to information about your organization’s revenue and expenses, including program versus administrative expenses. All nonprofit organizations are required to submit a version of Form 990. It is also important to know that the year listed on the top right corner is the year that your fiscal year began not ended. For example, if you are reporting for July 1, 2014 – June 30, 2015, the Form 990 will say 2014. This is because the timeframe you are reporting begins in 2014. Read more

Time for ChangeThis is the time of the year for reflection and resolutions.  The beginning of a new year is a great time to make important changes and get a fresh start!  Have you taken a good look at your accounting practices lately?  So many people hit the gym this time of year, but what about your organization’s financial health?  You may need a fiscal health assessment.  It’s time to fix some common accounting mistakes NOW to start strong in 2016.

Top 3 mistakes we’re called in to fix at NonProfits:

We’re often hired to assist nonprofit organizations because of accounting mistakes within the organization.  Let’s shine a light on what we’ve learned from our experiences to help YOU avoid financial instability: Read more

 

Not everyone can be a financial expert, but board members should be inquisitive and keep an eye on these three areas to spot red flags:

  1. Dip in Cash Flow – Is this normal? Is this unexpected?
  2. Financial reports with unfavorable variances and deficits
  3. Increasing liabilities – Is this a trend or pattern?  Why are debts ballooning?

According to Kate Barr, the Executive Director of the Nonprofit Assistance Fund, “Boards pay too much attention to income statements and budgets, both short-term information, and not enough attention to the long-term perspective of balance sheets. Yellow flags are on the income statement. Red flags are on the balance sheet.” Read more

It’s the holiday season and the spirit of giving is heartwarming!  Now is the time to ask for that last contribution of the year!  If you haven’t asked, it is not too late!  Get those letters in the mail, hand signed by the Executive Director or Development Director.  Increase your donation chances by including a self addressed envelope.  

No time to print and send them out?  A nicely worded email outreach to your current donors and contacts is better than no communication at all.

Here’s a few tips on asking for a last minute donation:

  1. Don’t just ask, give a reason for your ask. Provide the reason why your organization should receive some of their holiday cheer.  
  2. Make it short and sweet. Your donors are probably getting bombarded with holiday emails from other sources so make it worth their while to open your email.
  3. Be sure to thank them in advance but most importantly after the donation. As a donor, I am always excited to receive a handwritten card to say thank you for my hard earned money. Wouldn’t you?

From our family to yours, warm wishes,
Ronda & Cortez Hughey

During year endNonProfits Review-Year End Checklist- Accounting-Nonprofits-Hugheys Debits & Credits, we all need help remembering what all is required of us or is it just me? This checklist is to help my fellow Nonprofit Accountants remember what’s needed to close out the year. Follow this checklist to save time so you can spend it with your family during the holidays!

 

We strive to make your life easier, so if you would like this checklist in PDF form, click hereContact us today to assist you with your Nonprofit needs.

-Ronda

 

Checklist 2It’s crunch time! The holidays are here and you are scrambling trying to decorate, plan parties, and hide gifts. Oh wait! You still have to close out the calendar year for your NonProfit! Let us make it easier with a end of the year to-do list!

  1. Federal Reporting – IRS Form 990 is the NonProfit version of Form 1040. It is an annual report required to filed by all 501(c)3 organizations. The form is due 5 ½ months after the end of your fiscal year. For example, if your fiscal year end is September 30, your form would be due February 15. 
  2. Grant Reporting – It is the end of quarter four (two if you are on a fiscal year end of 6/30) and grant contracts require certain reports to be filed to see the financial status of the grant. Ensure each grant is separated financially per state requirements.
  3. State Reporting – There are state specific filing requirements through the Secretary of State such as Charitable Solicitation renewal as well as the Annual Report. You can check your deadlines here.
  4. Donor Appreciation – This is the season of fundraising and you are wrapping up your year-end campaign, don’t forget to send a thank you to those you took the time to support your cause! I know each of you have done this because you read our previous blog “Does My Donation Matter?” If not, read it here.
  5. Board Updates – Use the holiday season to capitalize on all the great ideas your board will have about next year’s agenda. Also take time to review board members, agency policies, review and approve financial items like budgets and financial statements, and create a strategy how to further achieve your mission! Read more

When we work with our NonProfit clients, one of the biggest struggles they face is properly accounting for cost allocation. 

From staff to board members, we often find a lack of detail and planning when it comes to cost allocation. What you don’t know CAN indeed hurt your organization when it comes to State Agency approval.

Let’s talk about why you need to have a deep understanding of this process.  We never want an organization to lose their state funding, risking everything for lack of accountability.

Cost Allocation: What Does That Mean?

Cost allocation is an accounting method used to determine cost to cost objects. In nonprofit accounting, it is used to determine the percentage of shared items that should be billed to each program. Read more

Are You Giving Back? 3 Tips on How to Give While Protecting Your Budget

As we all give thanks for our loved ones and the blessings in our lives, we want to take a moment to give back by thanking our clients because we consider you family. The relationships we have developed are based on care, trust and dedication to growth.  We are so very thankful and wish you and your family success and well-being.

As we move into the season of joy, praise and giving, we leave you with three tips for navigating the holidays successfully: Read more

Why do we specialize in Nonprofit accounting?

After serving as the fiscal officer in a nonprofit, Ronda understands how these organizations are the heart of our communities. The people and volunteers that work in nonprofit organizations give themselves tirelessly to the causes and people that they serve.

Most non profits operate with stretched resources, limited administration and operations overhead and every employee wears many hats.

Read more