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NGO accounting - experts help needed

Sabin Pokharel (student) (176 Points)

13 July 2015

Within some days, i have to handle NGO client. Currently they are preparing manual single entry syetem. I have to finalize its accounts for tax purpose and for next financial year (starting from next week), i have to handle all the works of book keeping and accounting.

I want some guidance so that i can do better and it will be easire for me in my work. Please provide as much information as you can, which may be helpful in accounting for NGO. Please guide me for both closing of current year and working for next year.

Plzz dont post any links.

Thanks

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Mukund (Nil) (36 Points)
Replied 25 September 2015

Here are some of the things which you should start of with.

1.Get a grip on their Bank accounts ( they should be having only one or perhaps 2 at most)......you can then reasonably construct their P&L accounts,Balance sheet easily which is starting point for you.

2.Download all their Bank statements in a excel file,then you can segment the sources of receipt ( donation+interest income),expenses ( cash,salaries,rentals,other admin expenses etc etc) and other Payouts..

3.On their expenses figure out pattern how much is regular expenses paid by cheque & how much is cash withdrawn for the whole year.From cash withdrawn find out how much cash is available with them now as in physical.

4.Introduce rules ( depends on your influence there & help of their manager/director) to reduce cash outflows & route almost all to cheque payments.Then document their commitments for expenses or services by asking for a business plan focussin on key major spenders of their NGO company.

Rest all should be easy for you,don't raise your expectation to their director saying i will do everything quickly.Hope this helps.

Usually the people who commit money for NGOs ( as in govt,charity,companies) will demand outcome for the money they spend & raising money for NGOs is dependent on how good their financial record is also in terms of basic housekeeping & quality of information you share with your donors.Hope this helps.