Make the financial report a standard board agenda item. Make sure your board members read and understand the information.

Revenues minus expenses equal the bottom line. In the commercial world, this is known as Profit or Loss. In the not-for-profit sector, we call it Surplus or Deficit. On audited statements, it’s often described as Excess (Deficiency) of Revenues over Expenses (Expenses over Revenues).

Need to know how much is in the bank? Check your own records (assuming they’re up to date), not your online bank balance. Your books will contain all issued cheques, whether they’ve been cashed yet or not.

In Excel, you can make the row numbers and column letters appear on your printout. In the Page Setup dialog box (under Page Layout on the ribbon, or under the File menu in 2003 and earlier) click on the Sheet tab and put a tick beside Row and Column Headings.

The Operating Statement, or Income Statement, shows an organization’s revenues and expenses. It’s also often titled the Statement of Revenues and Expenses! In the business world, it’s known as a Profit & Loss Statement, or P&L.
Financial Management, Revenue, Expense, Financial Statements

Reimbursements to employees should be reviewed and approved by a senior staff member. The executive director’s expense claims should be okayed by a board member.
Financial Management, Policies and Procedures, Expense

In Excel, you can auto-print row and column headings on every page of a spreadsheet that runs over multiple pages. In the Page Setup dialog box (under Page Layout on the ribbon, or under the File menu in 2003 and earlier) click on the Sheet tab and you’ll find the Print Titles commands.

Journals capture accounting transactions day by day. The general ledger contains the same transactions, but organized account by account.

In Excel, the F12 key opens the Save As dialog box, which allows you to save your file under a new name.

In Excel, Shift+F11 will insert a new worksheet in front of the active sheet.

Consider the authorization process when you’re paying company bills online. Your board and management approvals should be equivalent to what you’d do for cheques.

It’s important to document all transactions, to the extent that you can. Keep good paper records to back up your reports.

In Excel, the COUNT() function can be used to count “occupied” cells where the content is numeric. COUNTA() counts cells occupied by text. This is useful if you need to know how many items are in a list.

The only way not-for-profits can build up their net assets is to make more money than they spend. Watch that bottom line!
Financial Management, Assets, Revenue, Expense, Financial Statements

The commercial term “equity” becomes “net assets” on a not-for-profit’s statements. These terms capture the residual value in an organization – or what would be left over after liabilities are subtracted from assets.

In Excel, when you’re working with a spreadsheet that’s larger than the area you can see on your monitor use the “Freeze Panes” command to freeze rows and/or columns to keep them in view. This allows you always to see headings while you scroll.

Keep blank cheques in a safe place – ideally in a locked drawer.

Journals are used to classify accounting transactions by the type of action. So, for instance, revenues are processed through Sales/Receipts/Deposits journals, and expenses through Purchases/Payments/Payroll journals.

In Excel, Ctrl+F10 is a toggle command that will minimize or maximize the selected workbook window.

In Excel, the F5 key is “go to.” Hitting F5 opens a dialog box allows you to enter any cell reference or range name, and jump immediately to that location.

In Excel, the F7 key opens the Spelling dialog box, which will spell-check your document.

Software creators like Simply Accounting and QuickBooks don’t support old versions forever! Consider upgrading every other year to stay within the tech support “window.”

A tax credit is a direct reduction to the amount of income tax payable. See our Glossary for more definitions.

In the “My Documents” screen, you can quickly duplicate a file by using Ctrl + C to copy it, and Ctrl + V to paste it to a second location.

Is your organization incorporated provincially in Ontario? Watch for developments with Bill 65, Ontario’s new Not-For-Profit Corporations Act. When it is proclaimed in force, corporations will have three years to file Articles of Continuance and revise their by-laws to comply with the act.

In the “My Documents” screen, use Ctrl + X to cut a file and Ctrl + V to paste it to a new location.

A qualified opinion is an audit opinion indicating that the financial statements cannot be verified to generally accepted auditing standards, or that they have not been prepared in accordance with generally accepted accounting principles. See our Glossary for more definitions.

Any information you receive from the CRA by phone about GST/HST (or any other topic) is merely an opinion. If you need a firm answer, you must write the CRA and request a written ruling. This responds to your particular case, and binds the government.

In the “My Documents” screen, you can rename files quickly by selecting the filename and hitting the F2 key.

Some charities that are registered to charge GST/HST qualify to file under the general method, where they can claim 100% input tax credits rather than partial rebates. You will find details on the CRA website.

Personal income tax returns for 2011 are due Monday, April 30, 2012. Freelancers can take advantage of a later deadline: they have until Friday, June 15, 2012 – but any tax owing must be paid by April 30.

In Excel, the F2 key edits the active cell. The insertion point is at the end of existing text. Note that the formula bar (which also contains the cell contents) becomes active too.

Employers must provide detailed pay stubs itemizing pay and deduction amounts. Accounting software does this automatically with each pay. If you use manual cheques, every time net pay changes you should issue a report to each employee.

Most Excel commands exist in two places: the ribbon (the menu bar in 2003 and earlier versions), and as keyboard shortcuts. Here’s a complete list of Excel 2010 shortcuts.

Visit the CRA website. It contains many guides and forms, lots of which are now “fillable” online.

If the CRA determines that a staff member has been improperly treated as a self-employed person, you can be charged both the employer’s and the employee’s share of EI premiums and CPP contributions for the period in question.

The Windows clipboard is like a memo pad that allows pieces of information to be temporarily stored and then retrieved later by another application. The “copy” command moves content to the clipboard. The “paste” command retrieves and inserts it.

Tickets for special events are often not fully receiptable, because patrons receive advantages from attending. Check our FAQ for split receipting rules.

Complete repeated tasks more efficiently by creating spreadsheet templates. Use the “Save As” command to duplicate your template as needed, leaving the original blank.

For most small and mid-sized organizations, payroll source deductions must be remitted to the Canada Revenue Agency on the 15th of the month, for the preceding month’s activity. (Larger organizations may need to remit more frequently.)

Do you have a question about GST/HST? Contact the GST/HST Rulings Hotline at 1-800-952-8987 to speak to an officer.

With some jurisdictions, accountants, lawyers and other professionals serving on your board of directors may be held to a higher standard of care than other board members: they are expected to apply their professional expertise, even as volunteers.

New in Office 2010! It used to be that “undo” only undid actions back to the last time you saved the file. It now remembers and allows you to undo actions earlier than your “save.”

By-laws are rules passed by an organization’s board of directors setting out how it is to be run. They cover matters such as membership in the corporation, how directors are elected, and how meetings will be conducted.

To get rid of an error quickly, close the file without saving. Be careful, though: you’ll lose all of your work since the last save.

Don’t pre-sign cheques. Although the convenience is tempting, this is an “end run” around the authorization process. Signing officers’ responsibility is to review and approve transactions.

Tickets for special events are often not fully receiptable, because patrons receive advantages from attending. Check our FAQ for split receipting rules.

In Excel, Word and other Microsoft Office applications, Ctrl + S saves the file you’re working on. Save frequently! Training, Software, Microsoft Excel In Excel, Word and other Microsoft Office applications, Ctrl + S saves the file you’re working on. Save frequently!

Registered charities that are registered to charge GST/HST are expected to file their returns using the charities method. Under this method, charities keep 40% of GST/HST charged (and remit the other 60%), and receive a partial rebate of GST/HST paid.

In Excel, Word and other Microsoft Office applications, Ctrl + O opens the “open file” dialog box which allows you to locate and open an existing file.

Management should count floats and petty cash periodically, as spot-checks on accuracy.

Toronto charities renting commercial or industrial space have until February 29, 2012, to file their claim under the city’s Property Tax Rebate Program for Registered Charities. You’ll find details here and here.

In Excel, Word and other Microsoft Office applications, Ctrl + N opens a new file.

If you have been audited by the CRA for GST/HST (or any other tax), you will be given a time limit within which you can file an appeal. If you have concerns, file the appeal! You can always withdraw it. Better not to miss the deadline.

Your corporate minutes book should contain essential documents including your incorporation documents, by-laws and board minutes. Keep this in an accessible place for reference and make sure it’s up to date.

If you sell merchandise, keep a separate float for making change – don’t use your petty cash box for this purpose. Confusion is often created when the same “pot” of money is used for both spending and receiving money.

In Excel, Word and other Microsoft Office applications, Ctrl + F opens the “Find and Replace” box, which allows you to search for content, or to search and replace it with other content.

The Canada Revenue Agency provides definitions that help you determine whether your staff should be treated as employees or self-employed. Review this material.

Offsite backups are important. Rack up key files to a USB key or other storage device and take a copy home – or investigate automatic online backups to the cloud.

Boards find it easier to understand your finances when they’re looking at comparative numbers. At a minimum, your presentation should include last year’s finals, this year’s budget, and this year’s actual results.

The general rule is that charities do not charge GST/HST on services. Thus – no GST/HST on room rentals, advertising sales and professional development events. GST/HST does apply to admissions to places of entertainment.

In Excel, Word and other Microsoft Office applications, Ctrl + V pastes text from the clipboard to the insertion point (i.e. the spot where your cursor is).

You can claim GST/HST rebates and input tax credits up to four years from the date of purchase. So, in 2011, you can claim on items back to 2008.

Is your organization incorporated federally in Canada? Under the new Not-for-Profit Corporations Act, you have until October 17, 2014, to submit Articles of Continuance. Organizations that do not respond will be assumed inactive and dissolved.

Only staff on payroll, who contribute to the Employment Insurance plan, are eligible to apply for benefits. Freelancers are not covered.

Office petty cash is often managed as an “imprest fund” – i.e. a fixed amount. Cash plus receipts should always equal the value of the fund. For instance, if you opened your fund at $100, after your staff bought $30 of supplies, the box would contain $30 in receipts plus $70 in cash.

It’s a leap year! Your deadline for filing 2011 T4 and T4A slips is Wednesday, February 29, 2012.

Charities and other public service bodies such as municipalities and school authorities are entitled to a partial rebate of GST/HST paid on purchases. The rebate rate depends on the type of organization. See this document on the CRA website for details.

The Canada Revenue Agency produces a range of free e-newsletters containing policy updates and other important information. Subscribe at the CRA website.

Provincial employment standards acts set basic requirements for hiring and terminating staff, and managing vacations, parental leave, sick leave and other employment issues.

In Excel, Word and other Microsoft Office applications, Ctrl + C copies selected text to the clipboard, where it is available to other applications.

Make it a habit to review financial statements at every board meeting. Cultivate board familiarity with your numbers.

You can claim unused charitable donations on your personal taxes for up to 5 years. So, when you’re filing your 2011 taxes, you can claim previously unreported donations back to January 2007.

In Excel, Word and other Microsoft Office applications, Ctrl + I makes selected cells or selected text be italicized.

The 9-digit Business Number serves as your account number for all CRA services. A 2-character letter code identifies the program account: RP for payroll, RT for GST/HST, RR for registered charities.

Ask your employees to fill in new TD1 forms when their personal situation changes. For instance, a new parent can claim a child credit, but a recent grad’s tuition and education credits are only good for the calendar year when they were in school.

The F1 key at the top right of your keyboard is your friend! In most applications, this opens the Help menu.

Hard expense items are those where management has limited discretion or flexibility, or a strong commitment. See our Glossary for more definitions.

Do you offer a benefits package? If the employer pays for group life insurance premiums, there is a taxable benefit to the employee which must be reported as compensation on the T4 slip. For more information, see the CRA website.

Know your obligations under privacy legislation around the handling of credit card numbers and other personal data from members, donors, employees and others.

In Excel, Word and other Microsoft Office applications, Ctrl + U makes selected cells or selected text be underlined.

Charities that are small suppliers do not need to register for GST/HST. There are two small supplier tests; you only need to meet one. A) Your total revenue is below $250,000, or B) Your taxable sales are below $50,000.

Every few years, employers who pay weekly will have a 53-pay year (instead of 52), and bi-weekly employers will have a 27-pay year (instead of 26). This affects CPP calculations.

An office petty cash fund is a useful tool for covering small expenses. Limit access to the responsible staff member(s), and reconcile the fund regularly to catch errors.

The Charities Directorate phone number is 1-800-267-2384. Call them with your questions on tax receipting, filing your T3010 and other matters.

In Excel, Word and other Microsoft Office applications, Ctrl + B makes selected cells or selected text be boldfaced.

A fiscal year is any 12 consecutive months used as an organization’s accounting cycle. Corporations may choose a year-end that corresponds best to their activities. See our Glossary for more definitions.

Employers can decide on payroll frequency. Common pay periods are weekly, bi-weekly (26 in a year), semi-monthly (24 in a year) and monthly.

Keep cheques in a safe location. Signed blank cheques should be avoided – but if you have “emergency cheques” with a board member’s signature, make sure they’re under lock and key.

Donating appreciated securities (stocks or mutual funds) is the most tax effective way for donors to support your charity. They pay no capital gains tax and they get the charitable tax credit.

In Excel, Ctrl + 1 opens the “format cells” dialog box, which contains number and font formats, borders, colours and more.

Equity is a company’s residual value; the amount that would be left if assets were used to pay off liabilities. Not-for-profits refer to it as Net Assets. See our Glossary for more definitions.

As of 2011, HST is charged in Nova Scotia, New Brunswick, Newfoundland & Labrador, Ontario and British Columbia. All other provinces and territories charge GST (and, in some cases, a provincial sales tax too).

Learn how to read a bank reconciliation. Make sure you understand why the bank’s balance may be different from the balance in your books.

The annual T3010 Charities Return is due within 180 days (6 months) of your fiscal year-end.

In Excel, Ctrl + A selects the entire worksheet. Click on any cell to unselect.

Your purchasing policies should establish who is authorized to make and approve purchases, to help you manage your activities within budget.

The CRA releases updated payroll tax tables on January 1. Updates may be released on July 1, and occasionally on other months.

In Excel, Ctrl + Spacebar selects an entire column. Shift + Spacebar selects an entire row.

Different GST/HST rules apply to commercial business, charities, not-for-profit organizations and municipalities. Check the CRA website for the guide applicable to your organization.

Taxable benefits are items above and beyond payroll that have a value for employees, and that the CRA considers taxable income. Check this page on the CRA website for information about cell phones, parking, transit passes, insurance, gifts and other benefits.

Use a regular supplier but don’t want to use petty cash around the office or don’t have a company credit card? Try using a prepaid gift card in a low amount and treating it in the books like petty cash.

Donations received by December 31 are eligible for a tax credit in that year. Make sure that your receipting is up to date at the calendar year-end so your donors can claim their credit.

Keep multiple, redundant backups of your accounting software. Better safe than sorry! In fact – when was your last backup? Check now!

T4 slips must be issued to all payrolled employees by February 28 for the preceding calendar year. Employers with six or fewer staff can use CRA’s free T4 web forms application by clicking here. 

Many charities require two authorizing signatures on cheques– but there is no limit no the number of signing officers you can appoint. Give yourself a couple of extras!

In Excel 2010 (and other Microsoft Office 2010 applications), Ctrl + F1 hides or shows the ribbon.

In Excel, use the combination Ctrl – (Control + Minus) to delete single cells, highlighted blocks of cells or entire rows.

Most not-for-profit corporations in Canada need to hold their Annual General Meetings within 180 days (6 months) of year-end.

Put February 28 in your calendar! It’s the annual deadline for filing T4s, T4As and perhaps other T-slips, depending on your charity’s situation.

Business chequing accounts generally pay little or no interest. Move excess cash to an interest-bearing investment account.

Charities are not obliged to issue charitable donation receipts. Some charities use a minimum threshold, e.g. donations above $20 are receipted.

In Excel, use the combination Ctrl + (Control + Plus) to insert single cells, highlighted blocks of cells or entire rows.