As a non-profit organization, it may feel like accounting and finances are confusing. Unlike for profit organizations, a non-profit organization can have cash coming in from many different sources like donors, dues, fundraising, and other ways.
The Rules To Nonprofit Accounting
There are different rules for where the money coming in can go. Donors may set restrictions on where the donated funds go and how they can be used. Due to these restrictions, it is important to ensure that funds are being spent in the correct way.
Because of the restrictions, nonprofit organizations use fund accounting to manage their finances. With fund accounting, nonprofits are able to allocate donations and money into different funds in order to keep them organized. This allows nonprofits to spend the funds on their intended purpose.
Additionally, non-profit organizations may have expenses like employee salaries and building expenses. All of the money that is coming in and going out have to be recorded. This can make the situation stressful for many organizations.
Because of this, it is important to work with an accounting firm that understands the intricacies associated with nonprofits and nonprofit accounting. From understanding fund accounting and tax laws, to properly tracking and reporting on the financials, a professional accountant will be able to provide valuable insight and recommendations.
Montgomery Accountants For Non-Profits
Aldridge Borden is an accounting firm in Montgomery that understands the nuances of non-profits and fund accounting. Having been around for decades, the CPAs at Aldridge Borden can leverage their vast experience to handle any mix of complex issues that may arrive.