Operating a successful not-profit organization offers unique rewards and accomplishments for those who are involved with the running of it. Most specifically, is the joy from knowing that the services and amenities being provided are benefiting a cause, a community, or individuals in need. However, for those with experience working within the sector, the potential for achieving these rewarding and fulfilling accomplishments is also met with a unique set of challenges, particularly the financial challenges of working in the not-profit sector. Looking for accounting firms that are able to meet the unique needs of your not-profit organization is one of these challenges, but once found, can lead to a lot less stress when it comes to worrying about financials.
Accounting firms that specialize in providing services for not-profit organizations or equipped to help in a number of ways:
Meeting the unique tax needs of the not-profit
It is becoming increasingly difficult for not-profit organisations to qualify and receive legal not-profit tax exemption. In order to qualify a number of forms and financial statements must be completed accurately and submitted annually. Specialized forms such as the Statement of Financial Position, Statement of Financial Activities, and the Statement of Functional Expenses are vital in order to receive not-profit exemptions, in addition to a variety of other financial statements. Failure of a not-profit organisation to meet the necessary financial requirements will result in termination of a not-profit’s tax exemption qualification and eligibility. Finding not-profit accounting firms who specialize in the not-profit sector and are therefore able to stay informed on the changing and amending requirements for not-profit exemption is a valuable resource to have.
Understanding the Organization’s Mandate
Being involved in the organisation, you understand the goals of your not-profit organisation and the outcomes that it is endeavouring to achieve, but does your accounting firm? The firm that you choose to work with should also understand the priorities of the organisation and be on board with the organisation’s mandate. Not only will this help to nurture a mutually-respectful professional relationship, but it will also help you to feel confident that the firm that you are working with is doing its best work for you. Choosing to work with a firm that specializes in not-profit is always preferred as they have a better understanding of not-profit bookkeeping and accounting goals whereas those who work for for-profit entities are not necessarily structured to do so as readily.
Cost efficiency is the lifeblood of any not-profit organisation and taking on an accounting firm that is able to help to further improve the cost-effectiveness of the organisation can be a valuable resource indeed. These improved efficiencies can be a result from improvements in fundraising strategies, a reorganization of accounting structure and more proficient administration. Moreover, many accounting firms that specialize in the not-profit sector offer additional consulting services that may also be able to help benefit your organisation in the long-term.
In essence, those who work in the not-profit sector understand the innermost workings and as well as the unique differences between not-profit and for-profit entities in a number of ways, shouldn’t your accounting firm understand too?
RBZ, LLP is one among the best accounting firms ( http://.rbz.com/ ) offering accounting, tax and consulting services to hundreds of law firms, ranging from two-partner emerging practices to regional firms with several hundred partners. To know about the different accounting fields, you may also visit Ask.com.
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