NON-PROFITS & GOVERNMENTS
While many aspects of nonprofit and for-profit business accounting are similar, there are significant differences. The tracking and reporting of income and expenses as well as payroll taxes are still needed. However the nonprofit organization has a duty to drive its resources toward a mission. Nonprofits are required to itemize expenses across management, fundraising, and program areas. These “functional expenses” are required by the IRS to be reported.
GMG CPA's can help your nonprofit organization create a system that defines how you will allocate expenses across the various functional areas and to specific programs. A cost allocation plan can be extremely useful in determining how much a program or activity actually costs and, done accurately, it gives a clearer picture of the organization’s finances. It is also important to track and report revenue in the form of contributions and of the value of donated services.
GMG appreciates the hard work of the nonprofits in our area. We take time to understand your mission and to create systems to help you with fiscal reporting so that you can focus on the valuable work you do for our communities.