Changes in the NFP and charity sector have tightened up the reporting requirements and standards for the industry, paving the way for more guidance required from accountants and auditors.
With over 54,000 charities registered in Australia, the diverse sector draws on the expertise of accounting and auditing professionals to ensure that reporting & accountability standards are met. While the focus is often on the mission for not-for-profits and charities, there does need to be a focus on ensuring full financial reporting standards are met and exceeded.
Accountants and auditors are essential in the improvement in reporting throughout the sector with the Australian Charities & Not-for-profits Commission called on accounting professionals to correct over 6800 calculation errors in 2015 which were made by NFP's and charities.
In 2016 there has been a significant reduction in errors due to improved ACNC requirements and closer reporting measures now in place across the sector.
Accountants and auditors add value to charities and NFP for the following reasons:
- Calculating errors - accountants and auditors work to find incorrect totals, missed sub-totals and any issues with the information statement
- Correct reporting - finding the correct charity size and annual information statement plus ensuring all financial statements are complete and correct
- Referencing and abiding by ACNC Act 2012 - meeting the mandatory accounting standards in all financial reports
Accounting professionals have the experience and knowledge to ensure all the auditing and reviews are in place. Rules vary considerably for GST and FBT, so if you're a charity or NFP looking to ensure you are completely accountable and meet the reporting requirements, it's essential to engage the services of a quality accountant and auditor.
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