Why Charitable Organizations Should Hire Charity Accountants
Posted by Amit Gupta on November 7th, 2017
A non-profit’s finances can be just as complex as any organization’s, which is why it is critical to maintain proper accounting, bookkeeping, and control of every financial obligation the institution has. Number crunching to many is a mundane task no one wants to take on, yet it can mean the difference between an organization’s success or failure. This is where a professional charity accountant is most beneficial, providing you with the appropriate accounting and bookkeeping system that will help make sure that your non-profit is using its financial resources accordingly and in line with its mission. Hiring a charity accountant will help your organization’s financial health, ultimately supporting your goals, and ensuring compliance with all statutory requirements you need to meet. Below are major areas where professional accountants can help you in terms of non-profit compliance:
• Bookkeeping – To keep an organization healthy, you need healthy books. Bookkeeping is a relatively straightforward task, but it can also involve many complex activities and responsibilities, especially when dealing with a more sizeable organization that is engaged in large volumes and different types of transactions. This means a great number of books or journals to maintain, such as cash disbursements, cash receipts, pledge ledgers, accounts receivables, accounts payables, investment ledgers, and payroll ledgers. It is also the bookkeeper’s responsibility to reconcile bank statements with these journals or transfer relevant financial information to create a comprehensive financial statement. Duties of a charity accountant vary widely, but considering one, regardless of the size of your organization is a practical choice, if you want to maintain the health of your financial books.
• Financial control and budgeting – A charity accountant may also assist you in creating a reliable financial control system, consisting of procedures that can help protect your assets, prevent mistakes, detect errors, and prevent the misuse of your charity’s funds. They can also help analyse your income, side by side your typical expenses, thus helping the board and management to make financially sound decisions when it comes to budgeting.
• Financial reports and tax reporting requirements – Charity accountants can churn out reliable financial reports, which are crucial to strategic planning and informed decision-making. Additionally, they can help ensure that the organization is duly meeting its tax obligations and all other reporting requirements.
• Protecting your financial health – Most importantly, hiring a charity accountant will allow you to access the right expertise that you need in order to maintain and protect the financial health of your charitable institution.
About the Author:
Amit Gupta is Director of Allenby Accountants. Allenby Accountants is an independent accounting firm, located in Uxbridge, West London. We are accountants, business advisers, offering financial services and helping you to achieve your business ambitions. Our offered range of services include accounting, bookkeeping, tax management, VAT management, tax planning, Inheritance tax, capital gains tax issues, succession planning, etc. We specialise in offering services to sectors like medical & healthcare, retail industry, professional services, property & construction industry, charity and not-for-profit organisations and more.