Archive for the
‘GMS Inc’ Category

1. Not Recording Receivables at all (using the Cash Method of Accounting) – Typically, Not-for-Profit organizations prepare their Financial Statements using the accrual method of accounting, or at the very least modified cash. Since these types of organizations are funded on a cost reimbursement basis to a large extent you want to get your financial statements [...]

As this Blog addresses the nuances of the Nonprofit’s budget, keep in mind that the key word in this document’s title is “Manage”. We’re assuming here that everyone reading this understands and embraces the incorporation of line item budget comparatives in an organization’s Financial Statements. Be as realistic as possible – In an organization that is [...]

​1. Paying bills too early: You don’t want to get in the habit of paying bills simply because they’re on your desk. If you have a bill that is due in net 30, wait until you’re closer to that 30-day point to pay the bill. If you pay a bill early, the only cash management [...]

The definition of “Allocate” for purposes of accounting is to spread an expense over a period of time or group of cost centers to achieve more realistic financial reporting. ​ The definition of “Allocate” for purposes of accounting is to spread an expense over a period of time or group of cost centers to achieve [...]

Any leading accounting system such as the GMS Accounting and Financial Management System has the ability to be extremely flexible when it comes to payroll deductions. We’re talking now about items other than payroll taxes that are required to meet tax obligations for various government levels.  These “other deductions” can include things such as employee retirement contributions, [...]

It’s no secret that working for a nonprofit can be one of the most rewarding professions knowing that you’re able to help those who greatly need your service, but working for a nonprofit can be challenging when it comes to finances. ​ The accounting staff at nonprofits have a difficult job. Depending on the size [...]

How fixed assets are recorded and depreciated are areas that can differ significantly when comparing nonprofit accounting with for-profit accounting. Please be aware that the examples I give in this blog do not represent all possibilities or methods used in tracking fixed assets. You should always seek the advice of your auditor or funding source [...]

​1. Incorrect loan terms entered in the software.  Data entry mistakes, such as interest rate, daily vs. amortized interest computation, late fees and other fees to be collected from your client’s payments, can have a serious impact on repayment calculations. 2. Remiss in entering activity on a timely basis.  If loans and their subsequent activity are not [...]

Those of you in the fiscal department of a not-for-profit organization are aware that in most circumstances an annual or bi-annual independent audit is required as a result of OMB Circulars and/or specific funding sources. Unfortunately the term “Audit” seems to have a negative meaning associated with it. Of course there are times when an [...]

According to studies done by the top four international accounting firms, nonprofit organizations have an error rate approximately 60% higher than that of for-profit entities. However, some good news in these studies is that over 70% of these errors are basic mistakes such as bookkeeping and recording errors. Three examples of common errors and their [...]