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

All posts tagged nonprofit accounting

Gavel (1)As a nonprofit organization, you have the option to take advantage of your state’s tax exemption status for sales taxes. This exemption will allow your organization to not have to pay sales taxes on purchases. This is a great way to save on the almost 10% sales tax here in Tennessee. However, are you or your staff guilty of tax evasion?

As an accountant, I am often making purchases for our nonprofit clients. I have copies of all the necessary documents in order to save our clients sales taxes. Your organization may have staff such as Program Managers or Executive Directors that has an exemption card with their name on it because of their frequent purchases for the organization.  Over the years, we have encountered countless times where staff members have been using the agency’s tax exemption card to save money on personal purchases. However, this is illegal and unethical to use the agency’s tax exemption card for personal use. The consequences could be years in prison and large fines for the State of Tennessee in addition to possibly losing some of your civil rights, such as the right vote or carry a firearm.  Contact your state’s sales tax division to determine your state’s consequences. 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

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

 

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