2024 Bookkeeping Best Practices for Non-Profits and Small Businesses
Since Perry & Associates CPAs was founded in 1974, we have had passion beyond the numbers for our non-profit and small business clients. As a firm that started out as a single person’s vision and steadily became one of the most respected accounting firms in the country, we understand that maintaining a successful small business requires a lot of hard work. And as a firm deeply committed to community involvement, we are inspired every day by the work of non-profits that change lives and make an impact.
This is why we are proud of our bookkeeping services that allow small businesses and non-profits to thrive and stay in compliance with current regulations. Check out our list of small business and non-profit bookkeeping checks and balances to ensure that your organization is running efficiently on a daily basis:
Identify Internal Controls
Internal controls are key to helping an organization run smoothly, as they make it clear to everyone, from the top down, the policies and procedures in place that must be followed. Examples of bookkeeping internal controls include tasks such as requiring approval for expenses above a certain threshold, maintaining proper documentation for all transactions, regularly reviewing financial reports, requiring two signatures on checks, conducting background checks on employees who handle money, and more.
Define Responsibilities
Assign different responsibilities to multiple individuals within your organization, even if your business is very small. Why? It requires those individuals to take accountability for their respective tasks, and also helps prevent errors or fraud. Requiring interaction between multiple parties that can hold each other responsible, and adds an extra layer of protection.
Budget Monitoring
Compare actual financial performance against budgeted amounts regularly to identify discrepancies and address any issues before they become a costly problem for your organization.
Reconcile Bank Statements Regularly
As a CPA firm with a forensic component, Perry Forensic, we know that financial fraud and embezzlement can happen to any organization. Reconciling bank statements, accounts payable and accounts receivable consistently ensures that all transactions are accurately recorded and accounted for, which can protect your business from being the victim of financial crimes in the long run.
Other important ways to stay on top of bookkeeping checks and balances at a small business or non-profit
- Keep all cash in a locked drawer.
- Deposit cash and checks in the bank soon after they are received.
- Know what documentation you should be keeping.
- Periodically have an independent party review your organization’s financial records and procedures.
- Emphasize the importance of ethics, policies and procedures at staff meetings, and check that everyone follows the rules at all times.