5 Ways Your Non-Profit Can Save Money

Tax preparation for non-profit businesses

Is your non-profit organization experiencing cash-flow problems? Tax preparation is one way you can save money. Find out other ways to save money here.

  • Reuse and recycle material

Some non-profits require materials daily. These include t-shirts and posters for fundraising events. Although necessary, creating new material all the time can add up to costs in the long run. Save money by reusing and recycling material where possible. Ask staff to reuse dry clean t-shirts, table cloths, and covers and reuse posters where possible to save cash.

  • Recruit volunteers

Volunteers are a great option when you’re short-staffed. A lot of people want to help out non-profits that mean something to them and will be happy to do so without a paycheck. Make sure you provide them with reasons to join your non-profit, such as showing them how they will be helping others. You can also offer unpaid internships to younger members and provide them with a letter of completion at the end of the year to help them enter the workforce.

  • Try to go paperless

The cost of ink, paper, and even pens can start to add up. Apart from saving the environment, going paperless will reduce a lot of costs. Try investing in digital solutions and filing systems such as QuickBooks which make sorting documents easier and will save you money in the long term. Quickbooks is easy to learn but if you need a QuickBooks advisor, Georgen Scarborough can help out.

Did you know you can save money by hiring a professional such as an accountant to handle your taxes? It may seem tempting to do it yourself but an accountant can find you tax breaks you didn’t even know you had with a non-profit organization. Apart from that, they can also help you to reduce unnecessary expenses and provide you with tax advice.

Georgen Scarborough has professional tax accountants who can help you with your taxes, accounting, and finance. 

Give us a call today for tax preparation for your non-profit organization!

How to Avoid a Tax Audit

1-Nobody wants to be audited

Nobody wants to be audited. Thankfully there are ways to avoid a tax audit. Read on for ways to keep your business in the good books with the IRS. 

Avoid Accounting Errors 

A simple accounting error can turn into an audit if you aren’t careful. Make sure your calculations are correct. Avoid mathematical errors by hiring a professional accountant to help you out and double-check your numbers. 

Always Sign your Tax Returns 

A lot of people surprisingly forget to sign their tax returns. A failure to sign your returns will raise flags for the IRS. They might wonder why you did not sign and what you are hiding from them.

Don’t Underreport your Income 

Leaving out a sale from an asset or side income might be tempting but it can get you in trouble. If you get caught not reporting income, you can be forced to pay back taxes for it, which includes interest on your income tax. You can’t just get caught through your audit but you risk getting caught if someone who paid you for a product or service is audited and they link the cash back to you.

Don’t Underestimate your Deductions

Another temptation would be to deduct tax from a home office. Although some items are reasonable, don’t overestimate your expenses. Deducting a high amount for your rent for example should signal a red flag. Only deduct what you use for your business.

Don’t Fail to Hire a Professional 

It is best to hire a professional to assist you with your financial statements and audits to ensure that you are calculating your tax correctly. 

Avoid a tax audit by hiring the professionals at Georgen Scarboroughgive us a call today!