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.
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.
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.
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.
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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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.
Get in touch with our Not For Profit expert accounting team today to find out how we can help you!
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.
Not-for-profit organisations in Australia are entitled to many different tax exemptions. These include:
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.
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.
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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