We can help setup and maintain your non-profit organization’s accounting and tax records by handling all the financial reporting functions and FIRS & SIR reporting for you., We may also be engaged to audit, review, or compile your financial statements to comply with your organizations by-laws, and provide accountability to your donors.
Each year the relevant tax authority requires most tax-exempt organizations to submit their annual returns and its relations, which includes the following items.
Statement of Activities with very specific operating revenue and expense categories such as charitable donations, grants, unrelated business income, program service expense, support services expense and fund raising expense…
Statement of Financial Position with specific categories such as restricted cash, temporarily restricted assets, payables and accrued expenses…
Statement of Functional Expenses with all the expenses allocated to either program services, fundraising, or support and operations.
Individual Program Expense Schedule that reports all of the expenses for each program or service like seminar programs or educational mailings.
Revenue Support Schedules that detail the organization’s sources of income in specific categories like charitable donations, membership fees, investment income.
The tax authority uses these very specific revenue and expense classifications to determine if your organization will retain its tax-exempt status. So it’s imperative that you build your accounting system around these revenue and expense classifications.
Cash-flow insolvency can usually be resolved by negotiation. For example, the bill collector may wait until the car is sold and the debtor agrees to pay a penalty.
Balance-sheet insolvency is when a person or company does not have enough assets to pay all of their debts. The person or company might enter bankruptcy, but not necessarily. Once a loss is accepted by all parties, negotiation is often able to resolve the situation without bankruptcy.
OOC will help and advice business owners with financial problems as we understand how stressful it can be when your business experiences difficulty. Some of the situations are simple to resolve, others are more complicated, involving multiple international jurisdictions.