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What Is Meant By Not For Profit

Accounting in charitable organisations is quite different than for profit businesses. If you need a wider experience in finance you might want to broaden your horizons in one of the many organisations.

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What Is Meant By Not For Profit

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  1. What Is Meant By Not For Profit

  2. What Is Meant By Not For Profit If you are dealing with a not for profit organisation you need to know that it does not preclude you from making profit. It merely means that the company’s profits are ploughed back to further the organisation’s efforts. These are often charities and they are not in the business of making profits for their owners. Conversely, if you are looking for Not For Profit Finance Jobs you will certainly receive a decent salary. All you need to remember is that companies such as these work in quite a different way than a commercial one.

  3. Although there are differences in work ethics, both types of business want to make a profit to be distributed in different ways. Charities help their causes and for profit ones help the business to grow. For this reason experienced personnel need to be paid a good market salary to keep money come in. On top of that charities can and do apply to be tax exempt and some of them also collect funds and income to dispense to other non for profit organisations. Every week the BBC broadcasts a charity appeal where the public can donate money to a specific charity. These donations can be made so that the money sent in is exempt from tax so that the charity makes more money.

  4. So how are accounting jobs in these organisations different from for profit businesses? As you can imagine the latter is only concerned about the bottom line, i.e. whether it makes profits for the good of the company. Non-profit ones are concerned with utilising the capital by helping their cause and to see how the money generated is being spent on these causes. Financial statements do, therefore, not include profits for stakeholders and the rules of accounting are different than for a money making business. It could, therefore, be said that the Board generally consists by a committee that works on a voluntary basis, whilst the day to day running is conducted by a paid workforce.

  5. A charitable organisation is has a legal personality and it is able to employ people and make decisions to enter a contract to lease premises. The board is not responsible for the debt of the organisation. These companies issue a statement of activities rather than the usual income statement than their for-profit counterparts prepare. However, even these businesses need to make some profit in order to meet unexpected expenses such as repairs to buildings and the need for staff increases. You can imagine that budgeting is a more complex challenge as there are overlapping different categories as described above as there needs to be a fund that will take care of the unexpected expenses.

  6. If you need a new challenge and you would like to apply for one of the Not For Profit Finance Jobs please get in touch with https://www.pro-recruitment.co.uk/ Pro-Recruitment Group Ltd https://www.pro-recruitment.co.uk/progroup Telephone: +44 (0)20 7269 6333 Email: Info@pro-recruitment.co.uk 20 - 23 Greville StreetLondon EC1N 8SS

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