NEW

PRESS RELEASE: Cassidy Jakovickas, CPA of Fresno, CA Appointed to Intuit’s Accountant Council

Select Panel Advises on Products and Services that Accountants and Their Clients Want Most             FRESNO, CALIFORNIA – June 4, 2019 –Today, Intuit, Inc (Nasdaq: INTU) announced that Cassidy...

Beyond The Numbers: What We’ve Been Reading

Although our team loves using numbers and spreadsheets to help our clients make the best financial decisions, we also enjoy reading great books. Staying well read on both fiction and non-fiction books helps us hone our imagination and introduces us to new, sometimes...

Looking Back At April

It’s hard to believe that we’re at the end of April, but it’s true! This month, we helped our clients wrap up another great (and busy) tax season. There was, as always, a lot of paperwork, emails, and nail-biting involved in the days preceding April 15, but that’s all...

5 Last-Minute Tips For Filing Taxes in 2019

Well, April 15 is almost here, and the tax-related panic is thick. If you haven’t filed your 2018 tax paperwork and are rushing to get your taxes in by the deadline, we’ve decided to give you some last-minute tax advice that will hopefully help ease your stress....

An Introduction To Cybersecurity for Business Owners

Keeping your sensitive business and customer data secure has never been more critical. Whether you are a small business or a national corporation, you can't relax your defenses against those criminals seeking to take advantage of lazy cybersecurity policies. Virtually...

March News Roundup

Wow! It seems like we just started March and we’re already moving into April! As we move into the final stretch of tax season, we’re recapping this month’s news for you, just in case you missed it amid the tax-related hubbub. MBS Accountancy: November Review This...

4 Key Changes To Depreciation Under The TCJA

As the Tax Cuts and Job Act (TCJA) continues to be unraveled by tax professionals, it’s important to review the changes and their implications on business operations and tax strategies. In this article, we’ll highlight TCJA’s changes to first-year bonus depreciation,...

3 Ways A CPA Can Make Your Business Successful

It can often seem unnecessary to hire a certified public accountant (CPA) since bookkeepers and accountants are frequently believed to be the be-all-end-all for a business’ finances. However, there are certain advantages to having a CPA by your side. While we...

3 Myths You Shouldn’t Believe About Accountants

To a business owner, an accountant that helps make sense of business finances can seem like a godsend. Whether you’re just starting your business or are already established, having a great accountant by your side is a sure way to keep your business running smoothly....

3 Ways QuickBooks Apps Can Improve Your Business’ Efficiency

Over 5.6 million businesses use QuickBooks to streamline their business’ accounting. The eye-pleasing interface, streamlined workflows, and powerful automation that QuickBooks provides to these business owners are invaluable, saving them time and money. While...

Nonprofits File Taxes, Too

Reading Time: 2 minutes

nonprofitContrary to popular belief, starting a nonprofit organization does not mean you cannot make a profit. It means that the profit you do make must be reinvested in fulfilling your specific nonprofit mission. As long as you follow these guidelines you will pay little to no tax. However, the taxing authorities want to make sure that your operations stay consistent to this mission. How do they do this…? They Have you file taxes although you are not paying taxes!

The worst thing that a nonprofit organization can do is overlook their tax filing requirement. Not filing could lead to losing your tax exempt status, which would kinda defeat the purpose. This will also prevent you from applying for grants, and individuals that contribute monies to your organizations can no longer deduct them on their own personal tax return.

Here are a few tips for maintaining compliance:

  • Be early about filing your taxes every year. Working with an accounting firm that specializes in nonprofits can help you stay up to date on deadlines and will help you avoid penalties. To maintain your federal tax exempt status nonprofits must file a form 990,990-EZ, or 990-N depending on the amount of cash you bring that year.
  • Throughout the year, ensure that you are writing receipts for all donations that are made to your organization. If you are soliciting any contribution, you need to have a paper trail. This will matter a lot at the end of the year, so do whatever you can to make sure you are keeping the books.
  • Designate a treasurer who will manage your financial side of your nonprofit, specifically in regards to contributions and taxes. Something that they will need to determine is the best way to record your financial data, there are several cloud based software out that can simplify this process. QuickBooks Online, Aplos Software, and Xero are some of the best.

These are just a few tips that you need to keep in mind if you are a nonprofit. If you do get in a bind it is best to act on it and have an open line of communication with the taxing authority. Don’t Panic, and definitely don’t hide!

It is important to note that we are not just talking about the IRS, we are talking about you state, county, city, taxes as well. Think state taxes, business license tax, property taxes, and sales tax. If you don’t already have your finger on what these organizations need from you, you are likely already in a RISKY position!

If you need it, we are here to help.

Previous

Next