The Importance of Good Record Keeping
All businesses should maintain good records, and nonprofit organizations are no exception. Accurate record keeping helps you:
- Identify the source of your receipts. Donors who deem your organization worthy of their gifts expect acknowledgement for their own tax deductions and may want to stay informed of your activities and events.
- Keep track of expenses. When preparing your information return, accurate records are necessary.
- Prepare your financial statements. Correct statements are needed when planning and managing your business, as well as applying for credit.
- Monitor the progress of your organization. You can’t plan for new facilities or ministry expansion without first accounting for expenses.
- Save money. If your organization undergoes an annual audit, or if you use a CPA for preparation of your Form 990 return, thorough and accurate records are needed.
- Be transparent. Clarity and order within your organization promote donor confidence.
Online Stewardship Accounting & Consulting Services assists churches and smaller nonprofit organizations with bookkeeping needs. If we can help you, contact us at 904-398-4747 or Lynn@onlinestewardship.com. For audits and Form 990 preparation, contact our parent organization, Patrick & Robinson CPAs, at 904-396-5400 or Office@CPAsite.com.
