Non Profit Accounting Tips

Non profit accounting is a bit different from for profit accounting.



Here are some of the things that make a non profit organization distinct from a for profit business and how they will affect your bookkeeping.

1) A non profit organization is usually tax-exempt.

But, it is not exempt from filing a tax return. Here are some tips on how to get tax exempt status.

2) A non profit organization cannot pass it's income to it's shareholders, board of directors, or anyone else who controls it.

However that does not mean a non profit organization does not have a payroll. A non profit organization has regular expenses incurred in operating it of which you will need to maintain records.

3) A non profit organization is not created for the sole purpose of earning an income.

Rather a non profit organization is usually created for a charitable or educational purpose. Here are some examples of a non profit organization.

* Church

* Labor Union

* Foundation that Raises Money for and Supports a Cause

For more tips on bookkeeping and accounting for a non profit organization, visit Free Church Accounting.com

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