How Do Not For Profit Accountants Differ From Regular Accountants?

The main difference between for-profit and not-for-profit accountants is that not-for-profit accountants can help NFPs uphold their tax-exempt status requirements. This means that they have to keep track of donations and expenditures very carefully. Additionally, they may need to file periodic reports with the ATO detailing their finances. For-profit accountants do not have to deal with these requirements. If you’re running an NFP, not-for-profit accounting is essential for your day-to-day operations. A quality NFP accountant (like the team at Clear Tax) can help you stay on top of your obligations.

What Kind Of Tax Exemptions Are Australian Not-For-Profits Entitled To?

Not-for-profit organisations in Australia are entitled to many different tax exemptions. These include: Exemption from income tax, Exemption from Capital Gains Tax, Exemption from Fringe Benefits Tax. Not-for-profits can also access several different concessional rates and rebates, such as the Charitable Organisations Rebate. To access these tax exemptions, not-for-profits need to be registered with the Australian Charities and Not-for-profits Commission (ACNC). Once they are registered, they will be able to apply for ATO approval for tax exemptions.

What Happens If A Not-For-Profit Breaches Its Tax-Exempt Status?

If a not-for-profit breaches its tax-exempt status, it may lose its ATO approval and be liable for paying back taxes. Additionally, they may be subject to penalties and interest charges. This is why it is so important for not-for-profits to ensure that they are complying with all of their obligations.

Do I Need An NFP Accountant?

If you are thinking of starting a not-for-profit organisation, or if you are already running one, it is essential to seek professional advice to ensure that you are meeting your tax obligations. A qualified accountant can help you understand the different tax exemptions and what you need to do to retain them. The team at Clear Tax have worked in the NFP accountancy space for years, and can help you navigate the requirements. We can help to protect your organisation’s finances, and will give you peace of mind knowing that you are operating within the law.

Not for Profit (NFP) Accounting

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Clear Tax Accountants

Not For Profit (NFP) Business Accountant Melbourne

While not-for-profit (NFP) organisations have different structures and aims to companies, there are nevertheless many similarities when it comes to how they operate, and the degree to which they are subject to regulation and need to be compliant with government legislation.

This means that NFPs require the services of professional accountants who are not only experienced in business accounting, but also have the specific expertise required by charities, sporting organisations, NGOs, professional associations and other not-for-profit organisations.

Don't Have An In House Accounting Team?

It may be that as a voluntary or charity organisation, you do not have the resources or need for an in-house accounting team. Clear Tax can provide you with business accounting services when you need them, and we offer a range of packages designed specifically to meet the requirements of NFPs.

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Not For Profit Accountants

Specialist Melbourne NFP Accounting Services

Clear Tax is very experienced when it comes to acting as an outsourced finance team for not-for-profit organisations, operating under the guidance of the CFO or another member of the management team.

In this way, our specialist tax and business accountants can provide your organisation with high quality, ongoing accounting services, such as payroll and bookkeeping, so that you are only paying for these sorts of financial services as they are required. Not only does this help to reduce your overheads (essential in the charity and volunteer sectors), but it also helps ensure compliance, as our team is always up to date with all current legislation.

At the same time, we can offer advice and guidance as required, and provide impartial oversight of your record keeping and how well your financial systems are operating.

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Annual Financial Statements

Clear Tax can also prepare annual financial statements in accordance with statutory requirements, and work with your auditors in the preparation of your Audited Financial Acquittal.

Advice & Guidance

In addition, our team of highly experienced accountants can provide a range of additional services, such as advice and guidance on your specific tax obligations and exemptions as a NFP organisation, such as fringe benefits tax (FBT), GST, stamp duty and income tax.

Strategic Financial Management

Beyond technical accounting services, we can also provide strategic financial management and other consultancy services to help consolidate your organisation’s finances.

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Charity, NGO And Not-For-Profit Accounting

We offer a variety of services that help charitable and volunteer organisations maintain proper oversight of finances and ensure compliance with the specific laws related to how such organisations must operate.

Our packages are flexible, and can be designed to meet your organisation’s specific needs and budget.

For instance, Clear Tax accountants can provide accounting reports to senior managers and/or the board at specific intervals or as required, and attend finance or audit sub-committee meetings (in person or remotely) at pre-determined times.

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Ash and the team at Clear Tax have been absolutely spot-on for me and my business. Thorough, informed, approachable and, above-all, affordable, their company provides an incredibly refreshing and forward-thinking alternative to the more ‘old-school’ accountancy firms. Thank you for helping me in an area of business I do not love!

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We are delighted with the service Ash and his team at Clear Tax Accountants has afforded us since we joined them. They are very forward thinking utilising new software apps and technology. Most importantly for us, they are always accessible to help and answer our queries, as well as taking the time to get to know more about our business, Government Grants and how it works – a rare thing!

Jacqueline Chatlin

Excellent Service & help with all aspects of my accounts. Working as a micro-business I have little time to spend on accounts and the team at Clear Tax Accountants have looked after me brilliantly from the very beginning. I feel I am in safe hands and they answer queries in a very straightforward manner so I understand everything in order to decide what to do best for my business. Delighted with Ash and Yuvraj. Thank you!

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Range Of Experience

Over a number of years, Clear Tax has worked with a variety of different NFP, charity and volunteer organisations, including community service organisations and cultural groups, sporting clubs, education charities, arts organisations, professional associations, environmental charities, and many more. This wide ranging experience has enabled us to have an understanding and insight into the way NFPs operate, and the unique challenges they face.

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Frequently Asked Questions

About Not For Profit Accounting

Below are answers to some of the most common tax return questions our accountants get asked.

How Do Not For Profit Accountants Differ From Regular Accountants?
The main difference between for-profit and not-for-profit accountants is that not-for-profit accountants can help NFPs uphold their tax-exempt status requirements. This means that they have to keep track of donations and expenditures very carefully. Additionally, they may need to file periodic reports with the ATO detailing their finances. For-profit accountants do not have to deal with these requirements.
If you’re running an NFP, not-for-profit accounting is essential for your day-to-day operations. A quality NFP accountant (like the team at Clear Tax) can help you stay on top of your obligations.
What Kind Of Tax Exemptions Are Australian Not-For-Profits Entitled To?
Not-for-profit organisations in Australia are entitled to many different tax exemptions. These include:
- Exemption from income tax
- Exemption from Capital Gains Tax
- Exemption from Fringe Benefits Tax
Not-for-profits can also access several different concessional rates and rebates, such as the Charitable Organisations Rebate.
To access these tax exemptions, not-for-profits need to be registered with the Australian Charities and Not-for-profits Commission (ACNC). Once they are registered, they will be able to apply for ATO approval for tax exemptions.
What Happens If A Not-For-Profit Breaches Its Tax-Exempt Status?
If a not-for-profit breaches its tax-exempt status, it may lose its ATO approval and be liable for paying back taxes. Additionally, they may be subject to penalties and interest charges. This is why it is so important for not-for-profits to ensure that they are complying with all of their obligations.
Do I Need An NFP Accountant?
If you are thinking of starting a not-for-profit organisation, or if you are already running one, it is essential to seek professional advice to ensure that you are meeting your tax obligations. A qualified accountant can help you understand the different tax exemptions and what you need to do to retain them.
The team at Clear Tax have worked in the NFP accountancy space for years, and can help you navigate the requirements. We can help to protect your organisation’s finances, and will give you peace of mind knowing that you are operating within the law.

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