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A Right Way and A Wrong Way to Enter Credit Card Purchases

By CarolCarrie / June 4, 2018 /
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Rarely do we find credit card activity entered properly in QuickBooks. Usually we see credit card purchases entered into QuickBooks when the card is paid. The credit card payment is painstakingly split out and manually entered line-by-line following the purchase detail on the credit card statement. Problems with This Approach This approach creates several problems:…

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New Take on Net Assets

By CarolCarrie / May 21, 2018 /
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We keep getting “the question.” Hint — it’s not “Would you be our treasurer?” Though we get that one a lot, too. No, the question we refer to is when our client points to the net assets section of the organization’s balance sheet and asks, “Is that the money we have to spend?” It’s a…

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New IRS Tax Exempt Organization Search

By CarolCarrie / May 14, 2018 /
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Earlier this month (May 2018) the IRS replaced their online EO Select Check tool with a new searchable database called Tax Exempt Organization Search. More Powerful Tool The prior EO Select Check tool, available since 2012, provided users with information about an organization’s tax-exempt status. The new Tax Exempt Organization Search tool provides much more…

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Liabilities Make the World Go ‘Round

By CarolCarrie / May 7, 2018 /
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“Today, there are three kinds of people:  the have’s, the have-not’s, and the have-not-paid-for-what-they-have’s.”  ~Earl Wilson When it comes to nonprofit organizations, nearly all fall into the “have-not-paid-for-what-they-have’s” category, even if managers are scrupulous about paying everything on time. That’s because at any given point in time, a nonprofit organization with active operations in pursuit…

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A Problem with Restricted Gifts

By CarolCarrie / April 30, 2018 /
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Recently a client asked us for help keeping track of restricted gifts. This organization has a program where they raise money for other charitable organizations in the community. The client said people are making contributions restricted for specific organizations and even for specific purposes. For example, they received a gift from one donor for a…

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Budget Tricks for Fixed Assets

By CarolCarrie / April 23, 2018 /
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When we talk to nonprofit organization leaders about budgeting, we find they are usually thinking in terms of budgeting cash in and cash out. Even if you budget on cash basis (as opposed to accrual basis), you still need to capitalize and depreciate fixed assets. Accounting for fixed assets throws a big monkey wrench into…

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Dole Out the Depreciation!

By CarolCarrie / April 16, 2018 /
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Have you ever put banana chunks in the freezer so you could use them later for smoothies? It’s a great way to preserve bananas since they ripen so fast. Plus they make delicious smoothies. Depreciation is like a banana that you chop up into sections and save in the freezer. Then periodically you take out…

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Fixed Asset or Expense?

By CarolCarrie / April 9, 2018 /
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So you bought a laptop computer. That’s great! Quick question: Is it an asset or is it an expense? Answer: It depends. Don’t you hate that?  For one organization the laptop is an asset. For another organization, it’s an expense. It all depends on the organization’s capitalization threshold. The what? Capitalization Threshold Let’s define capitalization…

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Prepaid Insurance – Tired of Lumpy Expenses?

By CarolCarrie / April 2, 2018 /
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What if your board of directors looks at your profit and loss report each month and things generally look good. Then one month they see a big loss. “That’s because I paid $1,200 to renew the officers’ and directors’ insurance policy,” you explain. One board member comments, “I was going to ask if we had…

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Oddball Expenditures or Miscellaneous Receivables?

By CarolCarrie / March 26, 2018 /
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What happens when you see a charge to a movie theater on the organization’s credit card and you realize this is probably not a valid expense? You talk to the staff member who made the charge and she exclaims, “Oh no, the organization credit card and my personal card are both blue and I pulled…

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