Category: Bookkeeping

To ensure a good ROI, consider implementing strategies such as cost optimization and revenue enhancement. For example, streamlining operational processes can reduce costs, while targeted marketing campaigns can boost revenue. Remember that a positive ROI is a sign of effective resource allocation and strategic decision-making. ROI can apply to equity securities, fixed income instruments, commercial …

Read more “What Is ROI Return on Investment and How is it Calculated?”

The items that cause the changes in Net Assets are reported on the nonprofit’s statement of activities (to be discussed later). Since a nonprofit organization does not have owners, the third section of the statement of financial position is known as net assets (instead of owner’s equity or stockholders’ equity). The Statement of Functional Expenses …

Read more “A Practical Guide to Nonprofit Financial Statements”

Establishing a meaningful system for allocating joint production costs between departments can be complex and expensive, depending on how many processes are involved. It can also lead to errors if the cost allocation process is incorrectly done. Process costing helps in budgeting as it provides an estimate of the cost of production for a specific …

Read more “Process Costing Definition Example Benefit Limitation”

Check out the newest member of the QuickBooks family. Designed to support growing businesses who need greater automation, customisation and control. Your business is unique, so you can feel free to change your settings at any time. You can capture receipts, sort expenses and send invoices from one app. Your data is synced and available …

Read more “Sign in to QuickBooks Online account”

Donors and stakeholders demand transparency The Key Benefits of Accounting Services for Nonprofit Organizations in how their contributions are utilized. A lack of financial clarity can erode trust and deter future funding. Allocate a portion of your budget as a reserve or contingency fund. We recommend setting aside at least 5-10% of your annual budget …

Read more “Budgeting for Non profit Organizations”

Overall, the audit ideally confirms that the organization is operating in accordance with generally accepted accounting principles (GAAP). They include cost principle, revenue recognition, materiality principle, and full disclosure principle, among many others. The audit helps to hold the organization accountable to its directors, its investors, and its donors. In brief, the IRS wants to …

Read more “What Is a Nonprofit Audit? Ultimate Guide + Checklist”