Running a non-profit organisation comes with unique financial responsibilities. From securing grants to meeting regulatory obligations, not-for-profits must manage complex accounting tasks while focusing on their mission.
As a leading non-profit accounting firm in Sydney, Hopscotch Accounting shares essential accounting tips to help your organisation maintain compliance, financial health, and long-term sustainability.
1. Ensure Compliance with Grant & Funding Requirements
Many Australian charities and non-profits rely heavily on government grants and philanthropic funding. To remain eligible for future funding, it’s crucial to:
- Maintain accurate financial records
- Implement a robust financial tracking system
- Report on fund usage according to grant agreements
Correct grant accounting not only strengthens donor trust but also ensures your organisation meets all obligations set by funding bodies.
2. Understand Australian Tax Concessions for Non-Profits
Maximise your organisation’s resources by leveraging available tax concessions. Eligible Australian non-profits may benefit from:
- GST Concessions – Receive GST credits or exemptions on certain transactions
- Income Tax Exemption – Reduce operational costs with income tax exemptions
- Deductible Gift Recipient (DGR) Status – Offer tax-deductible receipts for donations, increasing donor appeal
Stay informed and regularly review your eligibility with the Australian Taxation Office (ATO) and Australian Business Register (ABR) to ensure continued compliance.
3. Prioritise Transparent Financial Reporting
Transparency is key to maintaining the trust of donors, regulators, and the public. Non-profit organisations in Australia must comply with ACNC (Australian Charities and Not-for-profits Commission) reporting standards.
Best practices include:
- Issuing clear and timely financial reports
- Publishing annual reports and audited financial statements
- Communicating financial performance with stakeholders
Well-documented financial reporting supports your mission and demonstrates accountability.
4. Strengthen Budgeting & Cash Flow Management
Effective budgeting is vital to managing resources and achieving impact. To improve financial planning:
- Create realistic, mission-aligned budgets
- Monitor and forecast cash flow regularly
- Diversify funding streams (e.g. donations, grants, social enterprises)
- Conduct ongoing financial reviews and strategy sessions
This helps avoid liquidity issues and supports long-term growth.
5. Meet ATO & ACNC Obligations Consistently
Non-profits have legal and regulatory responsibilities that must be met to maintain their charitable status. These include:
- Annual financial reporting to the ACNC
- Maintaining accurate financial records for at least 5 years
- Complying with payroll and superannuation requirements
- Staying up to date with tax changes from the ATO
Neglecting these obligations can result in penalties, reputational damage, or even deregistration.
Final Thoughts: Expert Non-Profit Accounting Services in Sydney
Strong financial management is the backbone of every successful non-profit. Whether you’re running a charity, association, or foundation, staying compliant, transparent, and financially savvy allows your organisation to thrive.
At Hopscotch Accounting, we specialise in non-profit accounting services in offering tailored support for charities, not-for-profits, and community organisations.
📞 Call us today at 1300 HOP 123 or contact us online to schedule a free consultation with our friendly accountants.
