This document discusses the financial management and accounting practices of non-profit organizations (NPOs). It outlines the objectives of NPO accounting as knowing funds received and spent annually and ensuring funds are properly utilized. It describes the accounting framework, stages of accounting documentation, key issues like foreign and local fund transactions, and types of financial reporting including internal reports like budgets and external statutory reports for compliance.

1. Understanding the
NPOs. Financial
Management

2. NPOs. Accountability
• NPOs as a Third Sector
• NPOs & Stakeholders
• Need for Proper Accounting

3. Objectives of NPOs Accounting
 To know how much money they have received and
spent in a year.
 To ensure that funds are spent / utilized properly
for the objectives of the organisation.

4. Accounting Framework
 What we need to know :
 Income for the current
financial year;
 The value of its assets;
 Amount spent out of grants
& donations;
 Balance of grant at the end
of the accounting period;
 What we need to establish :
 What type of accounts must be
prepared;
 What information is required by
the stakeholders;

5. Stages of Accounting and its documentation
Vouchers
& Supporting
Documents
Verification Approval
Entry in the
Books of Account
Filed in Voucher
file chronologically
Entry in the Subsidiary Records (if applicable)
Final Accounts
Audit
Audited Statements
of Account

6. Key Issues
• Transactions of Foreign Funds and Local Funds
• Supporting and Documentation of Expenditure
incurred

7. Financial Reporting

8. Types of financial reporting
Internal External

9. Internal Financial Reporting
• Budgeted vs. Actual
• Grant Status Report
• Cash Flow Statement/Cash Forecast
• General Ledgers
• Charts of Account
• Trial Balance
• Cheque Issue & BRS

10. External Financial Reporting
• Project Specific Report
• Statutory Report

11. Project Specific Reporting
• Fund Utilization Statement
• Financial Statement
• Grant Status Report

12. Statutory Report
• Income Tax
• FCRA
• Incorporation
• PF
• Audit

13. S. No. Compliance Category Date Due Status
1 Taxes
1.1
Monthly Tax Deduction at Source (TDS)
deposited.
1.2
Quarterly TDS returns to be filed with
Income Tax Department
1.3 Annual Returns for FY 2019-2020

14. 2 FCRA
2.1 Annual Returns for the FY ___________
2.2
Quarterly Foreign Contribution details
uploaded on Website
2.3
Form FC 6, if any in case of
change/addition/deletion of bank
account, address or change in more than
50% of Board members

15. 3 Incorporation law
3.1 Annual Filing of Return
3.2
Any other compliance which is applicable
by virtue of incorporation law

16. S.No Donor Name January February March
Due Submitted
on
Due Submitted
on
Due Submitted on
1
2
3
4

17. THANK YOU