Accounting for Non Profit Organizations – Harshwal & Company LLP

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2. Accounting for Not for Profit Organization • Non-Profit Organization • Definition: • A Non-profit seeking entity which does not usually involve in trading activities, but engages in rendering services to members and society. • Non-profit organization are established for the purpose of rendering services. • They are not expected to earn profit, but are organized for social, educational, religious or charitable purpose. • They take the form of sports are club, hospitals, libraries, charitable institutions like orphanages, educational institutions, religious institutions etc. Visit : https://www.harshwal.com/not-for-profits

3. Features of a Non-Profit Organizations: • Their main objectives is to members and public. • They are not expected to earn profits. • They do not normally engage in trading activities. • Credit transactions are not usually made. • Usually such concern keep only cashbook to record daily transactions. • They prepare a summary of cashback at the end called receipts and payments account. • No trail balance is prepared. • Do not prepare trading, profit and loss account, but prepares income and expenditure account. • Do not have capital, but they have only capital fund representing accumulated services. Visit : https://www.harshwal.com/not-for-profits

4. Accounting Statements: • Usually Non-profit making concern follow cash system of accounting. Under cash system, cash book is the most important book where all cash receipt and payment are recorded in a chronological order. • A memorandum book is maintained to record the name of the persons and institutions from whom amounts have not been received. • A stock register is kept to record the purchase of assets like furniture, books, equipment etc. Visit : https://www.harshwal.com/not-for-profits

5. A non-profit organization prepares three statements at the end of the accounting year, which form its final accounts. These statements are: • o Receipts and payments account. • o Income and expenditure account. • o Balance sheet. Visit : https://www.harshwal.com/not-for-profits

6. Receipts and Payments Account: • It is a summary of cash and bank transactions which helps in the preparation of income and expenditure account and the balance sheet. • A receipt and payments account is a statement prepared at the end of an accounting year, giving a summary of all receipts and payments recorded in cash book. • It is prepared by analyzing and classifying the entrees in the cashbook of a particular accounting year. • It is debited with all items of receipts and credited with all payments. • In preparing these accounts, no distinction is made between capital and revenue items. Visit : https://www.harshwal.com/not-for-profits

7. Features: • It is a real account. • Receipts are recorded in debit site. • Payments are recorded in the credit site. • It is a classified summary of cashbook. Visit : https://www.harshwal.com/not-for-profits

8. Format: Visit : https://www.harshwal.com/not-for-profits

9. Why Choose Harshwal • Expert Assistance: Identifies the proper actions to be implemented, eliminating inefficiencies and impractical methods or operations. • Superior Planning: Facilitates the complete layout of the plan, by following what can realistically be achieved within a particular deadline. • Accounting System Management: Suggests if any modifications are needed in the financial and accounting system. • Help You Achieve Business Goals: Shows the ideally suited path to achieve a specific business goal in a very effective manner. • Suggest Effective DOs and DON’Ts: Our Professionals suggest best suited DOs and DON’Ts, staying away from business complexities. Visit : https://www.harshwal.com/accounting-services

10. Technical Experience You Can Count On In actuality, a consultant does not have any authority to make changes to a company’s existing accounting practices or to dictate how the financial statements should be prepared. That said, he or she can suggest a path or course of action be followed. Depending on the consultant’s relevant knowledge and level of experience, this path can take the business to an extreme loss or great new heights. Thus, it is crucial to ensure the authenticity and credibility of the consultant who is going to be handling your accounting responsibilities. Our firm, Harshwal & Company LLP, is made up of a highly talented and skilled team of individuals who can offer services in accounting, consulting, auditing, and bookkeeping. With offices in San Diego, Oakland, California, and Albuquerque, NM, our professionals can offer clients highly dedicated and technologically advanced accounting consulting services to help their businesses reach the highest level of prosperity and success. Visit : https://www.harshwal.com/accounting-services

11. Contact Us For Expert Assistance SOUTHERN CALIFORNIA 16870 W. Bernardo Drive, Suite 250, San Diego, CA 92127 Phone:858-939-0017 BAY AREA 7677 Oakport Street Suite 460 Oakland, CA 94621 Phone:510-452-5051 NEW MEXICO 6739 AcademyRoad NE, Suite 130, Albq, NM 87109 Phone:505-814-1201 • Mail us: • info@harshwal.com Visit : https://www.harshwal.com/not-for-profits

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