As the year ends, nonprofits face a unique set of challenges. The end-of-year period is crucial for meeting fundraising goals, preparing financial reports, and setting a solid foundation for the upcoming year. Below, we have outlined a comprehensive end-of-year financial checklist to help your nonprofit wrap up the year successfully. 1. Review Revenue and Expenses...
Finding a reliable and skilled accountant is essential for any business, regardless of its size. A good accountant can help you manage your finances effectively, minimize your tax liability, and provide valuable advice for your business growth. Here’s a comprehensive guide to help you find the right accountant for your needs: 1. Define Your Needs:...
When would you use cash basis accounting and when accrual basis accounting? Read below to find out. The primary difference between cash basis and accrual basis accounting lies in the timing of when revenue and expenses are recognized. Cash Basis Accounting Accrual Basis Accounting Key Differences: When to Use Which Method: If your clients...
Managing payroll for a small team of 5 to 10 employees can be challenging, especially if you have limited knowledge. If managing payroll becomes too complex or time-consuming, consider outsourcing payroll to a professional service provider. This can help ensure accuracy and compliance while freeing up your time for other business tasks. Understand Payroll Taxes...
Setting up a budget is essential for financial stability and growth. Steps to Set Up a Budget: 1. Define Financial Goals • Short-Term Goals: Monthly and quarterly targets for revenue, expenses, and profit.• Long-Term Goals: Annual financial targets, expansion plans, and savings goals. 2. Identify Revenue Streams • Client Fees: Income from therapy sessions, consultations...
Here is the Step-by-Step Guide to Petty Cash Reconciliation 1. Gather Necessary Materials– Petty Cash Log: The record of all petty cash transactions.– Petty Cash Vouchers: Receipts and vouchers for each expenditure.– Cash on Hand: The physical cash remaining in the petty cash box. 2. Verify the Opening Balance– Confirm that the opening balance for...
Here are the steps for performing a Bank Reconciliation. 1. Extract Data: Obtain the bank statement and cash book for the period. 2. Match Transactions: Tick off transactions that appear in both the bank statement and cash book. 3. Identify Discrepancies: Highlight transactions that do not match or are missing. 4. Adjust for Outstanding Items:...
Step-by-Step Guide to Accounts Receivable Reconciliation 1. Gather Necessary DocumentsAccounts Receivable Ledger: This is a detailed record of all transactions involving customer invoices and payments.General Ledger: This includes a summary of all financial transactions, including those related to accounts receivable.Customer Invoices: Detailed records of amounts billed to customers.Payment Records: Records of payments received from customers.Credit...