CPA's & Consultants Providing Business Insight To Churches & Ministries

Are WE Closed Yet?

Posted Thu, 05/08/2008 - 12:27 by StanfieldODell

In this series of posts, we have discussed our churches and ministries can prepare for year-end reporting. In our previous post, we discussed reconciling and closing property, plant and equipment (PP&E) accounts at year-end.

In this post we will determine the characteristics of an operating lease and a capital lease. This will assist you in making sure that all capital lease items are posted as an asset and a liability for the funds owed concerning the lease. See Exhibit D for assistance, too.

End of Year Reporting - Spring Filing Requirements

Posted Thu, 05/01/2008 - 09:52 by Laurie Gnad

In our two previous posts we have discussed several filing requirements for tax exempt organizations. Here are several filings due this Spring...

Contributions - 6 General Requirements

Posted Mon, 04/28/2008 - 15:44 by Sandy Siegfried

According to Dictionary.com a contribution is synomous for a gift, donation, or benefaction. Since a gift does not occur without an irrevocable exchange, a contribution is not considered an allowable deduction unless the contribution is unconditional. The donor receives no personal benefit in exchange for the gift.

IF the donor receives a benefit for the gift, the difference between the gift and the benefit is the amount that is deductible. Here's an example...

Why We Pay Taxes

Posted Thu, 04/24/2008 - 06:16 by Sandy Siegfried

As I filed my annual federal and state income tax returns last week, I remind myself "why" I pay taxes. Personally, I believe I pay more than my "fair share", but that is beside the point of this blog post today.

The Apostle Paul, as recorded in Romans 13, reminds us "WHY" we pay taxes. This scripture is a favorite of mine, especially in light of the political environment that we endure...

Preparing for the Audit - Continued

Posted Mon, 04/21/2008 - 12:12 by Kirk Vanderslice

Auditors normally provide a list of items that they will need during the course of the audit. This list is usually prepared and delivered to the client during the planning phase of the engagement. These items normally include reconciliations and support for selected transaction throughout the year. Management should take time to prepare these work papers and have all applicable requests completed before the audit begins. This maximizes the auditor’s efficiency and management’s time required during the fieldwork.

Contributions/Event - Continued

Posted Fri, 04/18/2008 - 05:23 by Floyd Langley

Contributions may be the most gracious form of expression that a donor can provide a Ministry to aid in its Vision. Yet, with gracious offerings can come many challenges when attempting to account for the funds. The following example is a scenario that most any Ministry will encounter:

Are WE Closed Yet?

Posted Tue, 04/15/2008 - 11:01 by StanfieldODell

In our last post we discussed reconciling cash, investments and the related income and expenditures in our closing procedures.

Basis of Accounting for Non-Profit Entities

Posted Thu, 04/10/2008 - 10:55 by Anonymous

Cash Basis - vs - Modified Cash Basis…What’s the Difference?

Risk Standards (SAS 104 and 105)

Posted Mon, 04/07/2008 - 16:15 by Anthony Miller

As noted in our previous post, the AICPA has issued several new auditing standards that are applicable for audits ending after 12/16/07. We will briefly discuss the 8 new standards:

SAS 104 – More clearly defines the level of assurance auditors are to provide the client and interested 3rd parties regarding whether or not the client’s financial statements are free of material misstatement. This has not direct client impact.

Ordinary and Necessary Expenses (2 of 2)

Posted Fri, 04/04/2008 - 16:29 by Sandy Siegfried

In our series of ordinary and necessary expenses, churches and ministries should document lodging and certain incidental expenses (such as cab fares) by receipt and/or other contemporaneous records that include the business purpose of the trip.