Financial Technologies & Management- E-Newsletter for January

Upcoming Live Webinars

Dear {CONTACT.SALUTATION} 

We hope you find our monthly E-Newsletter useful for your nonprofit organization. We are pleased to provide you with access to our knowledge articles and live webinars!!

These live webinars will help Nonprofit Leaders, Treasurers, Finance Directors, Finance Staff, Executive Directors and other Nonprofit Staff.

Our upcoming live webinars for financial management training are broken into the following areas: Nonprofit Financial Forum, Nonprofit Finance Certificate, MIP Fund Accounting, and Financial Management Training.

We are pleased to announce our 2025 Nonprofit Financial Forum and MIP User Group which we have combined together for 2025 with the Forum during the first hour and the MIP user group for the last 30 minutes.

Here is the monthly schedule for 2025:  Please click on link for more information and to register.

Jan 23, 2025    1099 Tax Preparation

Feb 26, 2025    Tips for Smooth Audit and Common Audit Pitfalls

Mar 19, 2025    Building a Better Budget

Apr 30, 2025     Presenting Financial Reports

May 28, 2025    Effective Grants Management and Cost Allocation

Jun 25, 2025     Effective Nonprofit Financial Governance and Leadership

Aug 20, 2025    Tips for Smooth Audit and Common Audit Pitfalls

Sep 24, 2025    Building a Better Budget

Oct 29, 2025     Presenting Financial Reports

Nov 19, 2025    Effective Grants Management and Cost Allocation

Dec 17, 2025    Effective Nonprofit Financial Governance and Leadership

Please contact us via phone, email, or directly book a consultation on my calendar for all current and prospective clients.   Also, you can use the contact us page to subscribe to our newsletter for you, your staff, or your colleagues.

Please click here for the current and previous monthly newsletters back to 2020.

Best Regards,

James Simpson, CPA, CFE, CITP, and CGMA.

5 Common Nonprofit Tax Mistakes to Avoid

For nonprofit organizations, navigating the complex landscape of tax regulations is a crucial aspect of maintaining financial health and ensuring compliance with legal requirements. We'll discuss five common nonprofit tax mistakes that organizations should be aware of and take steps to avoid.

1. Failure to Maintain Proper Documentation-Need to implement robust record keeping systems to track financial transactions.
2. Misclassification of Employees and Independent Contractors-Nonprofits need to understand criteria to differentiate between employees and independent contractors to avoid penalties and legal issues.
3. Incomplete or Incorrect Form Filing-Tax Forms, such as Form 990, need to be filed out accurately and timely to avoid penalties and jeopardize tax-exempt status.
4. Engaged in Prohibited Activities-Must not engage in prohibited activities such as excessive lobbying or political campaigns can risk losing tax exempt status.
5. Inadequate Governance and Oversight-Board plays critical role to ensure organization complies with tax laws and address issues with financial activities 

Staying informed about tax laws and implementing best practices can help nonprofits avoid common tax mistakes.

Please click the full article for more information regarding the 5 common nonprofit tax mistakes.

1099 Preparation Guide

Employers must file wage statements and independent contractor forms by Jan. 31st.

Certain Forms 1099-NEC, Nonemployee Compensation, filed with the IRS to report non-employee compensation to independent contractors are also due at this time. Such payments are reported in box 1 of this form.

The early filing date means that the IRS can more easily detect refund fraud by verifying income that individuals report on their tax returns. Employers can avoid penalties by filing the forms on time and without errors. The IRS recommends e-file as the quickest, most accurate and convenient way to file these forms.

Hopefully, you collected your W-9 forms from independent contractors to whom you paid $600 or more this year.  The information on W-9’s can help you compile the information you need to send 1099-MISC and 1099-NEC to recipients and file them with IRS.  Here is a link to the Form W-9 that you would need to request your contractors and vendors to complete.

Please contact us for our 1099 tax preparation services which includes at least two meetings for the planning and the actual tax form production prior to the deadline. 

Please click the full article for the 1099 preparation guide.

Our Staff-Your Team

Our firm has grown because of strong client relationships with referrals from our clients and other referral partners.  Our staff is very experienced at performing the accounting function for our clients.   Our nonprofit accounting services includes bookkeeping, accounting, controller, and CFO services.  Our nonprofit software accounting software expertise be composed of QuickBooks Online, MIP Fund Accounting, Microix, and Sage Intacct.  Our nonprofit software services comprise software assessments, sales, data conversions, implementations, training, support, and project management services.  Our financial management training consists of our monthly news letter, nonprofit financial forum, MIP user group, and other training.

Our approach is to work with you to determine how your organization can best benefit from our professional services.  We realize that organizations don't have the resources to have a full accounting staff, so we focus on filling the accounting staffing gaps. We deliver quality accounting, bookkeeping, advisory, and tax services to ensure you have everything you need to make a significant impact for your cause.  Our firm provides the most experienced staff at affordable rates.

Please click on the find out more for the full article and staff member links

MIP Fund Accounting Update-Year End 1099 & W2

We provide software advisor services to our MIP clients.  Our system review services provide recommendations on how your organization can better leverage the software.  Please click here for our MIP Training page and look for our customized courses which includes all the modules training available from community brands university and more.  We are excited to expand our software advisory services by offering a client care plan for our MIP and Microix clients.

Get Ready for Year End Tax Processing and let us help you with your 1099 W2 production.  You will need to be on Version 24.x (KB30546) or Version 25.x (KB31991) to produce the 2024 tax forms.

We are the following resources to assist you with your 1099 tax production:

• 7 essential 1099 preparation steps in MIP
• 2024 1099-NEC User Guide
• 2024 1099-MISC User Guide
• 2024 Customer W2 Guide

Please contact us for our year end 1099 tax planning and production services.

Please click full article for MIP Software Advisory Services.

Our firm provides all the levels of accounting your nonprofit needs including bookkeeping, accounting, controller, CFO, and software advisory services for nonprofit accounting software including MIP, Microix, QuickBooks, Sage Intacct and AccuFund

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