Accounting is the field of business that seeks to analyze past business transactions, compile relevant information from them, and present such information to executives and other decision-makers. Just like public companies need to have accountants review their financial statements every year, nonprofit organizations have a variety of other needs that can be met by accountants who specialize in accounting for nonprofits and government agencies. Here are several ways to make keeping up with nonprofit and government accounting duties in the workplace that much easier.
Follow GAAP From The Start
If you don’t already know, GAAP is an acronym that stands for Generally Accepted Accounting Principles. Carrying out a basic search for the Generally Accepted Accounting Principles for nonprofit and government accounting will provide you with all of the rules and regulations related to keeping up with financial information that you could possibly ask for.
For the sake of longevity, your entity needs to compile its financial information in accordance with GAAP as related to government agencies and nonprofit organizations.
Always Aim For Being Compliant With All Tax Laws
The Internal Revenue Service (IRS) is the United States’ governing body of all things related to generating income and paying taxes on that income. In recent years, the IRS has made clear that it now casts a wider net for selecting nonprofits and government agencies to be audited. You should stay on top of the current status of your entity’s Form 990 throughout the year in the event that the IRS wants to examine it. You’ll thank yourself later if they do perform an audit.
Having Good Oversight Is Important
Most government departments and nonprofit organizations are overseen by boards of directors that consist of people who are experienced in their employers’ particular lines of business. To make sure that your entity’s funds stay in good working order, a top-notch board of directors is necessary.
Another great way to stay on top of your entity’s needs is to implement a leading government fund accounting software into its regular operations as to gain this benefit and all those mentioned above.