How is that Going for You?
How does one define a non-profit organization? It has been defined as entities that perform charitable services by accepting funds from the general public. To help regulate the activities and encourage proper allocation of funds, accounting standards have been put in place by the Financial Accounting Standards Board also known as FASB. The accounting standards are used by management of non-profit organizations as a guide to record transactions and comply with program requirements.
Many non-profit organizations exist to accomplish a goal and not to return a profit however as funding opportunities present themselves and partnerships begin to form, the financial statements will need to be accurately managed by a designated accountant or management. The finances are generally budgeted and every line item within the financials are accounted for. The operational budget is the foundation from which all of the work will be carried out. It allows you to establish benchmarks and determine priorities. In addition, it brings light to the variable cost which may exist and allows management to analyze and change the to fixed cost.
Here are some key steps in developing your budget:
These steps are sufficient and valid for a newly established non-profit organization and those who have been established for five or more years. A well established and maintained budget is what donors look for. Donors want to know where the money is going. They want to give their money away to "a worthy cause", and it is management's responsibility to show them that that's what is occurring.
Showing that you're non-profit organization is worthy starts with a good budgeting process which engages those who are responsible for adhering to the budget and implementing the organization's objectives in creating the budget. Get started today with the annual budgeting process, is it documented, with task, responsibility assignments and deadlines clearly state? It is never too late to get started.
Fontenot & Associates Solutions, LLC offers the skills and experience to prepare the annual budgeting procedures in advance which will ensure proper delegation of assignments and the delivery of a clear message.
The meaning of life is to find your gift. The purpose of life is to give it away." - Pablo Picasso
Hello, I'm Terra the Founder and Marketing Director of Fontenot & Associates Solutions. Thank you for joining my Accounting world. Our blog's purpose is to teach with the determination of closing industry and accounting process gaps that knowingly exist with our uniquely designed detailed procedures and trainings.
My mission is to offer the best accounting results for all companies seeking to close their process gaps with actual solutions. With my Bachelors and Masters Degree in Accounting, I strive for continuous development and professional growth in this profession. My professional career has been in the Oil & Gas industry for nearly the past 10 years but my business focus is to support and train accounting professionals in all industries.