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Your complete how-to guide - esignature legality for non profit organizations in india

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eSignature legality for non-profit organizations in India

Navigating the realm of eSignature legality can be a complex task for non-profit organizations in India. Understanding the guidelines and best practices is crucial to ensure compliance and security in digital transactions.

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How to eSign a document: eSignature legality for non-profit organizations in India

[Music] hey this is alex from applos academy today we're going to take a look at the rules and standards that your nonprofit needs to adhere to if you've gone through our other lessons and learned how to build an accounting system this is the lesson for you one rule to rule them all accounting really only has one rule and that's everything must balance in lesson four we cover debits and credits which are the nuts and bolts of your accounting system every transaction you record in a double entry accounting system will have an equal debit to an equal credit this is why double entry accounting is critical to your nonprofit if you're able to record that you spend 50 of office supplies but only 45 of it came out of the cash on hand you've got an unbalanced transaction that's going to cause some problems any software that you choose is going to have double entry accounting so there's really no need to worry about it you'll just want to pick one that has fund accounting to make sure that you keep in line with the other standards we're going to cover like any business or organization in the u.s there are certain governing powers that put in place the rules and standards that you need to adhere to accounting standards in the u.s are made by the pcaob aicpa fasb gasb and the irs if you want to know what those really mean read the content below because otherwise it just sounds like i'm really bad at the alphabet the point of all these organizations is to determine what's gap gaap which stands for generally accepted accounting principles these guidelines are decided on and then applied to every organization in the u.s nonprofits have unique guidelines which really boil down to your reports and tax returns reports as covered in lesson five are just a collection of data that you use to answer questions that people ask you like how much money do you have or how much money do you have set aside for a particular fund for non-profits there's three primary reports that you're going to need to generate the first is the statement of financial position otherwise known as your balance sheet this report illustrates the accounting equation and shows a snapshot of your organization's financial health the second is the statement of activities otherwise known as your income statement this report shows how much money you've received minus the money that you've spent which results in your net income or loss for a period of time the last report is called the statement of functional expenses this report shows not only how much money you've spent but breaks each expense down by fund and category so that was reports but now what about tax returns yes even though you're a non-profit the irs still wants to know how much money you have churches are exempt from filing this return but a non-profit needs to file what's called the form 990 every year the 990 return comes in three different forms the 990n e-post card the 990 ez and the full form 990. the form 990 e-post card is required of any non-profit with less than 50 000 in income during the year the form 990 ez is required of any nonprofit with between 50 thousand and two hundred thousand dollars of income during the year or less than five hundred thousand dollars in assets and the full form 990 is required of any nonprofit with over two hundred thousand dollars in income or five hundred thousand dollars in assets this return is due on the fifteenth day of the fifth month of your nonprofit's fiscal year which if you have a january 1 fiscal year means it's due on may 15th what if my fiscal year starts in december april 15th quick math do it again hey january i did that may 15th what if my fiscal year starts in october uh it'll be in no annualry so what's next this lesson completes our course of intro to nonprofit accounting if you've read all of our other lessons then good on you but if you haven't go back and read them once you've completed these lessons you're going to understand accounting fund accounting know how to set up a chart of accounts enter transactions pull reports set up internal controls and adhere to the rules and guidelines that your non-profit needs with this understanding you're ready to move forward managing the accounting system for your nonprofit until next time this has been alex with aplos software be awesome

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