NCJ Number
81348
Date Published
1977
Length
52 pages
Annotation
This accounting guide is designed for use by community-based residential centers in Canada.
Abstract
While many of the accounting concepts presented are applicable to all enterprises, both for profit and nonprofit, emphasis and examples are based on circumstances typical to nonprofit residential centers. The guide has been designed to assist persons who have had little or no bookkeeping experience. The guide presents (1) an overview of the accounting process; (2) a description of typical accounting records, including how daily transactions are recorded therein; (3) instructions for reconciling bank accounts; (4) a review of cash budgeting techniques; (5) an outline of how periodic and annual financial statements are prepared; (6) guidance on the keeping of memorandum records of accounts receivable and payable; and (7) a summary of service that might be expected from auditors. The guide does not make detailed reference to the preparation of tax returns, since nonprofit organizations are not required to pay taxes; however, if incorporated, they are expected to file a tax return with Federal, and in some cases, with provincial authorities. Preparation varies from Province to Province, and the local office of the Department of National Revenue should be contacted for assistance on these matters. Reference is made to the calculation of taxes and other deductions required to be withheld from employee wages. Illustrations of the use of accounting forms are provided throughout the guide. (Author summary modified)