Bookkeeping for Social Service
Bookkeeping for Social Service, Organizations, charitable, and social service entities in India should diligently record various financial transactions in their bookkeeping for social service.
Some key transactions include:
1. Donations and Contributions:
You must record any funds or assets received as donations or contributions.
These could be in the form of cash, cheques, online transfers, or even donated goods.
2. Expenses and Expenditures:
Meticulously record all expenditures, including operational expenses, salaries, rent, utilities, and program-related costs.
This provides a clear picture of the organization’s financial health and helps with budgeting.
3. Grants and Aid Received:
If the organization receives grants or financial aid from government bodies, foundations, or international organizations, it needs to properly document these transactions.
4. Program Expenses:
Record all costs associated with the charitable programs and social services the organization provides. This helps evaluate the impact and effectiveness of these initiatives.
5. Income from Investments:
If the organization has investments, it should record interest, dividends, or capital gains from these investments in the books.
6. Fundraising Events:
Document transactions related to fundraising events, such as ticket sales, sponsorships, and incurred expenses.
7. Loans and Borrowings:
The organization needs to accurately record any loans it takes, along with repayments and interest payments.
8. Asset Purchases:
When the organization acquires assets such as property, vehicles, or equipment, it should properly record these transactions to track depreciation and value over time.
9. Asset Disposal:
When the organization sells, scraps, or disposes of assets, it should record the corresponding transactions and any gains or losses.
10. Employee Payroll:
Document employee salaries, benefits, and statutory contributions such as provident fund and taxes.
11. Tax Payments:
Record any taxes, such as income tax or Goods and Services Tax (GST), that the organization pays.
12. Membership Fees and Dues:
If the organization has members who pay fees or dues, these transactions should be entered.
13. Foreign Exchange Transactions:
If the organization deals with foreign currencies due to international operations or donations, it should accurately record these transactions along with exchange rate information.
14. Depreciation and Amortization:
Record depreciation of fixed assets and amortization of intangible assets to reflect the decrease in their value over time.
15. Bank and Cash Transactions:
All inflows and outflows of funds through bank accounts and cash transactions should be documented.
16. Interest and Penalty Payments:
Record any interest paid on loans or any penalties incurred due to non-compliance with financial regulations.
17. Contractual Obligations:
Transactions related to contracts, agreements, or leases should be properly documented.
18. Provision for Contingencies:
Any provisions made for contingencies or future obligations should be recorded.
19. Revenues from Activities:
If the organization conducts revenue-generating activities, such as training programs or workshops, these transactions should be recorded.
20. Transfers between Accounts:
Movements of funds between different accounts within the organization should be accurately recorded.
To visit: https://www.mca.gov.in/
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