Are you one of the 87 565 NPOs in breach of the NPO Act? Comply or face deregistration
Every year thousands of NPOs fail to comply with the the NPO Act. President Jacob Zuma's first wife registered the Sizakele MaKhumalo-Zuma Foundation. But since they've registered in 2014, they've failed to submit any financial reports.
As an NPO you must submit annual financial reports to ensure transparency. If you don't you'll be deregistered.
One of the many reasons NPOs don't comply is because they don't completely understand how and what they need to do to comply with the Act.
Read on to learn how to register your NPO correctly and what financial records you need in order to comply with the NPO Act.
Analyse your financial statements and identify errors
Dealing with finances and accounts is one of the most important functions in your NPO. If you make one small mistake, it could cost your NPO thousands or face deregistration.
The Practical Accountancy Loose Leaf is a unique, practical guide that will give you advice, solutions, control checklists and tips to make your job easier. And I can guarantee that at least one of the tips or checklists WILL save your NPO money.
Click here to be 100% up-to-date on accounting and reporting standards
How to register a NPO company
You need to comply with the following to correctly register your NPO:
Your NPO's name;
Your NPO's main objective and purpose;
The powers of your organisation;
Rules for meetings and to conduct meetings;
Provide your NPO's financial transactions; and
Determine your financial year end.
The certificate of registration is your proof that your NPO is registered.
Read on what you need to comply with the NPO Act.
The key to preparing 100% legally compliant financial statements - now in your hands!
• The format of:
- Your pre-adjusted, adjusted and post-closing trial balance;
- Your income statement and what each of the components are;
- Your 100% correct balance sheet;
• Why you need financial statements;
• Your legal accounting reporting obligations; and
• Users of information from the balance sheet.
Click here to learn how to complete your NPO's financial statement's correctly
To remain registered you need to do the following:
Show the registration number on all documents;
Keep all supporting documents and financial statements;
You need to draw up financial statements that include: income statement, expenditure and balance sheet. If you're not sure how to do this click here to learn All About Financial Statements. You'll have a trial balance, income statement and balance sheet prepared professionally, fairly quickly and with minimum energy!
An accounting officer needs to check your financial statements are correct and consistent with your accounting records; and
Within nine months of the end of your NPO's financial year you need to submit financial statements and your accounting officer's report.
Draw up 100% correct and legally compliant financial statements and get rid of errors in your accounting records...Click here to learn how