Accounting for Non Profit Organizations – Harshwal & Company LLP

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Welcome to Harshwal Company LLP
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Accounting for Not for Profit Organization

• Non-Profit Organization
• Definition
• A Non-profit seeking entity which does not
  usually involve in trading activities, but
  engages in rendering services to members and
  society.
• Non-profit organization are established for the
  purpose of rendering services.
• They are not expected to earn profit, but are
  organized for social, educational, religious or
  charitable purpose.
• They take the form of sports are club, hospitals,
  libraries, charitable institutions like
  orphanages, educational institutions, religious
  institutions etc.

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Features of a Non-Profit Organizations

• Their main objectives is to members and public.
• They are not expected to earn profits.
• They do not normally engage in trading
  activities.
• Credit transactions are not usually made.
• Usually such concern keep only cashbook to record
  daily transactions.
• They prepare a summary of cashback at the end
  called receipts and payments account.
• No trail balance is prepared.
• Do not prepare trading, profit and loss account,
  but prepares income and expenditure account.
• Do not have capital, but they have only capital
  fund representing accumulated services.

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Accounting Statements

• Usually Non-profit making concern follow cash
  system of accounting. Under cash system, cash
  book is the most important book where all cash
  receipt and payment are recorded in a
  chronological order.
• A memorandum book is maintained to record the
  name of the persons and institutions from whom
  amounts have not been received.
• A stock register is kept to record the purchase
  of assets like furniture, books, equipment etc.

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• A non-profit organization prepares three
  statements at the end of the accounting year,
  which form its final accounts. These statements
  are
• o Receipts and payments account.
• o Income and expenditure account.
• o Balance sheet.

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Receipts and Payments Account

• It is a summary of cash and bank transactions
  which helps in the preparation of income and
  expenditure account and the balance sheet.
• A receipt and payments account is a statement
  prepared at the end of an accounting year, giving
  a summary of all receipts and payments recorded
  in cash book.
• It is prepared by analyzing and classifying the
  entrees in the cashbook of a particular
  accounting year.
• It is debited with all items of receipts and
  credited with all payments.
• In preparing these accounts, no distinction is
  made between capital and revenue items.

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Features

• It is a real account.
• Receipts are recorded in debit site.
• Payments are recorded in the credit site.
• It is a classified summary of cashbook.

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Format
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Why Choose Harshwal

• Expert Assistance Identifies the proper actions
  to be implemented, eliminating inefficiencies and
  impractical methods or operations.
• Superior Planning Facilitates the complete
  layout of the plan, by following what can
  realistically be achieved within a particular
  deadline.
• Accounting System Management Suggests if any
  modifications are needed in the financial and
  accounting system.
• Help You Achieve Business Goals Shows the
  ideally suited path to achieve a specific
  business goal in a very effective manner.
• Suggest Effective DOs and DONTs Our
  Professionals suggest best suited DOs and DONTs,
  staying away from business complexities.

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es
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Technical Experience You Can Count On

• In actuality, a consultant does not have any
  authority to make changes to a companys existing
  accounting practices or to dictate how the
  financial statements should be prepared. That
  said, he or she can suggest a path or course of
  action be followed. Depending on the consultants
  relevant knowledge and level of experience, this
  path can take the business to an extreme loss or
  great new heights.
• Thus, it is crucial to ensure the authenticity
  and credibility of the consultant who is going to
  be handling your accounting responsibilities. Our
  firm, Harshwal Company LLP, is made up of a
  highly talented and skilled team of individuals
  who can offer services in accounting, consulting,
  auditing, and bookkeeping. With offices in San
  Diego, Oakland, California, and Albuquerque, NM,
  our professionals can offer clients highly
  dedicated and technologically advanced accounting
  consulting services to help their businesses
  reach the highest level of prosperity and
  success.

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es
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Contact Us For Expert Assistance
BAY AREA 7677 Oakport Street Suite 460 Oakland,
CA 94621 Phone [phone]
NEW MEXICO 6739 Academy Road NE, Suite 130,
Albq, NM 87109 Phone [phone]
SOUTHERN CALIFORNIA 16870 W. Bernardo Drive,
Suite 250, San Diego, CA 92127 Phone
858-939-0017
Mail us info_at_harshwal.com
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Thanks for your interest in our Harshwal
Company LLP Accounting for Non Profit
Organizations, we will be pleased to help you our
with your business needs.