Accounting for associations in Rabuso

Accounting is a system of control and recording of expenses and income and other economic operations carried out by a company or entity. It provides a true and fair view of the economic situation of a company or organization at any given time.

In the case of associations, the fact that they are not for profit doesn’t mean that they do not have accounting and tax obligations. This is why a control of income and expenses is carried out.

An association can, for example, obtain income through membership fees, sponsorship of events or publications. If we analyze the expenses item, depending on the activity of the association, the payment to the different suppliers of products or services could be considered as an example.

Once all the formalities for the constitution and appointment of positions within the association have been completed, the bank account will be opened. In this way, it will be possible to centralize the operations and we will be able to have a faithful image of the economic situation of the organization through:

– Creation of annual budgets.

– Control of income and expenses.

– Monthly and quarterly closings (economic reports).

– Control of projects.

– Bank reconciliation.

In order to measure the variations in terms of budget and to keep an exhaustive control of them, the expenses and incomes will be distributed in analytical items according to their nature. For example, the payment for the reservation of a space for a convention will go under the heading “events”, while the income from the sponsorship of a guide will go under the heading “publications”.

In order to have total transparency with the associations that are represented, monthly and annual economic reports are made, as well as economic controls by projects. In this way, any interested party can consult at any time the financial status of the association, how its funds are managed or how a project has been financially closed.

It should also be noted that in the search for total transparency and rigor in the economic data handled, in the case of associations that exceed an annual turnover of €100,000, they go directly to having an official accounting.