You may not be out to make a profit but you still want your business to succeed – you want to help the people your non-profit serves and you want to make the entity worthwhile and satisfying to run. A non-profit is a business too, but it differs from a conventional business in many ways, not least in accounting issues. What do you need to know about accounting for non-profit success?

Decide If You Really Are Non-Profit

Right from the start you must be clear whether your business can truly be called a non-profit, particularly for accounting purposes and for legal issues. You need to ask yourself what your motive is and your purpose, where you will get revenue from, and if any other non-profits look similar to the structure of your business. Specialist accountants in central london will be able to assist with this right from the start if you are unsure which direction you should take the function and format of your company.

Set Up Your Non-Profit Correctly

Look at what paperwork you need to complete in order to ensure that you have filed your business with the correct agencies. Again, a specialist London accountant will be able to advise you on this important step. Look at the tax exemptions you can take advantage of as this will be of major interest to your non-profit and will help you get the biggest benefits from being a not-for-profit organisation. Create a business plan as you would for a regular business, and plan your fundraising and financing, marketing and growth, just as you would a business run for profit. If you need help with these aspects of your organisation you can access expertise from a financial expert in non-profit organisations.

Record Your Revenues

You will have money coming in from different sources and it is crucial you keep track of where and when each amount is from. For example, pledges, donations, membership fees, money from a fundraising event, and grants or lump sum gifts all need to be taken into account and recorded correctly in the financial records. London accountants with a specialism in non-profits are well-set to help you sort out these aspects of financial management.

Don’t Just Think Like a Non-Profit

Think like a regular business. You can strive just as a regular business does to make your organisation successful and to raise as much money as possible. Marketing plans, effective staff hirings, and timely business opportunities can all make the difference between non-profit success and failure. An accountant or business adviser can help you carry out these tasks.


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