Accounting and audit for Not-for-Profit Organizations
Wei CPA’s office, an accountant and auditor for Not-for-Profit Organizations in Toronto, provides not-for-profit organizations accounting, audit, tax and part-time controller services. Our office is a Chartered Professional Accountant and Licensed Public Accountant’s office , we are authorized by CPA Ontario to perform financial statements audit, review, compilation and the related tax services.
When should you need an accountant for not-for-profit organizations ?
Once you’ve incorporated your not-for-profit, you will have ongoing responsibilities that are specific to not-for-profit corporations, including:
- Maintaining records and making them available to directors
- Proper filing and income reporting
- Making sure that any changes to the structure of the corporation conform to the articles of incorporation
If you are a Canadian not-for-profit organization looking for seasoned accounting professionals to assist with the financial management of your organization, you will find a compassionate, innovative, and reliable accounting services from us. we provide experienced and dedicated accounting services for not-for-profit organizations.
When should Not-for-Profit Organizations require a financial statements review or audit?
If a not-for-profit organization is incorporated under Canada Not-for-profit Corporations Act, the requirements of annual financial statements are based on the following criteria:
Canada Not-for-profit Corporations Act | ||||
Type of corporation | Annual Income from Public Sources* | Gross Annual Revenues | Audit | Review |
Soliciting | >$10K | < $50K | Optional | Required |
Soliciting | >$10K | Between $50K and $250K | Required | Optional |
Soliciting | >$10K | >$250K | Mandatory | N/A |
Non-soliciting | <$10K | <$1M | Optional | Required |
Non-soliciting | <$10K | >$1M | Mandatory | N/A |
If a not-for-profit organization is incorporated under Ontario Not-for-Profit Corporation Act, the requirements of annual financial statements are based on the following criteria:
Ontario Not-for-Profit Corporations Act | |||||
Type of corporation | Annual Income from Public Sources* | Gross Annual Revenues | Audit | Review | Compilation |
Public Benefit | > $10K | < $ 100K | Required | Optional | Optional |
Public Benefit | > $10K | $100K – $500K | Required | Mandatory | N/A |
Public Benefit | > $10K | > $500K | Mandatory | N/A | N/A |
Non-Public Benefit | <$10K | <$500K | Required | Optional | Optional |
Non-Public Benefit | <$10K | >$500K | Required | Mandatory | N/A |
Income from public sources includes a charitable corporation or a non-charitable corporation that receives donations or gifts from non-members, government grants or other aid.
Regardless what type of report your organization needs for annual financial statements, our dedicated accounting and audit services for not-for-profit organizations can help you.
Auditor for Not-for-Profit Organizations
Canadian auditing standards requires the auditor for not-for-profit organizations to assess the risks of internal control and identify the significant control deficiencies to communicate with the management and the board of directors when concluding an audit opinion on the financial statements approved by the board. Management and the board of directors are responsible to establish and implement effective controls to prevent from errors in the process of preparing financial statements. An auditor for not-for-profit organizations is responsible to identify and assess the material misstatements, evaluate the appropriateness of accounting policies, estimates and its disclosures. An auditor for not-for-profit organization is also responsible for evaluating the appropriateness of the use of going concern, the overall presentation, structure and content of the financial statements to achieve fair presentation.
- Financial statement audit
- Financial statement review
- Compliance audit
- Special project (program) audits
Accountant for Not-for-Profit Organizations
Accounting for not-for-profit organizations is required to be in accordance with the Canadian accounting standards for not-for-profit organizations. A not-for-profit organization would follow either the deferral method or the restricted fund method of accounting for contributions. An organization’s choice of method of accounting for contributions has implications for financial statement presentation. For example, the deferral method and the restricted fund method result in differences in the recognition of restricted contributions in the statement of operations and in the presentation of restricted resources in the statement of financial position. Contact our accountant for not-for-profit organizations to discuss your questions, we can help you to set up the accounting system to meet these financial reporting requirements and help you to choose the appropriate accounting method in accordance with Canadian accounting standards for not-for-profit organizations.
- Year end financial statements compilation
- Monthly Bookkeeping
- Registered charity information returns T3010
- Corporate tax returns T2
- Not-for-profit information returns T1044
- GST/HST
- Not-for-profit tax consulting
- CFO/Controller services
- Internal control consultation
Resource links
Canada Not-for-profit Corporations Act (S.C. 2009, c. 23)
Canada Not-for-profit Corporations Regulations
Not-for-Profit Corporations Act, 2010, S.O. 2010, c. 15
Guide to the Not-for-Profit Corporations Act, 2010
How to Operate a Federal Not-for-Profit Organization
How to Start and Operate a Not-for-Profit Organization in Ontario
Contact Us
5000 Yonge Street, Suite 1901
Toronto ON M2N 7E9
Tel: (416) 628-9423
Fax: (416) 352-5713