Accounting
Accounting is the ideal tool for a structure to measure all the fluctuations that take place within its activities. From expenses to revenues, all transactions are categorized and recorded, which allows for clarity in the accounts.
Associative accounting can be seen as a cumbersome and relatively unuseful task. Nevertheless, for a small or large structure, accounting can be a solution, and with the right tools that simplify it as much as possible. An association, depending on its size, may decide to keep cash accounts or accrual accounts.
Cash accounting and accrual accounting are different. Cash accounting is based on all bank transactions in the structure. It records both income and expenditure according to the method of payment. Accrual accounting, on the other hand, is more complex. It differs because it takes into account receivables and debts and records transactions even when they have not yet been settled.
Is keeping accounts mandatory for an association?
For an association under the 1901 law, there is no article requiring accounting or other constraints on the financial organization. Accounting obligations may vary from one organization to another according to the following criteria:
- Size
- Activity
- Status of the association
- Means of subsidy
The accounting entries are then specific for each organization according to the competent authorities. They mainly concern so-called public utility associations. The accounting obligations are intended for the most important associations according to Regulation 2018-06 of the Accounting Standards Authority (ANC).
An association recognized as being of public utility is an association that holds a specific status that gives it advantages and a certain legitimacy in the eyes of the general public. To subscribe to this status, an application must be made to the Ministry of the Interior and requires several supporting documents.
The associations subject to this obligation are specified by Regulation No. 99-01 “relating to the procedures for drawing up the annual accounts of associations and foundations”.
What is the point of keeping accounts?
Given the non-compulsory nature of accounting entries, what could be the point of keeping the accounts of an association? In reality, there are many essential aspects. On the one hand, it is an opportunity for associations to delegate this type of administrative tasks rather than keeping the old methods that could be used, which are, of course, sufficient but require time, such as the Excel file or spreadsheet. But also, it is an opportunity for the treasurer to devote more of his attention to other actions, especially those in the field.
Although general accounting is less fundamental in the activity of an association than in that of a company, it is no less interesting. The association can be the source of more and more solicitations to be accountable. This is particularly the case with various key players in its operation (investors, members, volunteers, etc.). Also, the accounting configuration, when it is well kept, makes it possible to make all transactions clear and transparent in fidelity to reality.
Accounting is a source of information for the members of the association as well as for third parties. This is illustrated by the management of annual accounts. The annual accounts can be a means of control for the various parties in the association or for administrative purposes, in particular on the use of public funds. It is also a good way to study the funds that participate in the operation of the association and deduce provisional budgets or a financing plan.
Finally, one of the final benefits of keeping cash accounting is the support and support it can have in the context of new projects. In the search for financing and investment, in the event that the interlocutors would like an account of income and expenditure.
How to manage the accounting of an association?
eBrigade is thinking of conceptualizing simplified and equally efficient tools!
Accounting is simple when tools make it simple. At eBrigade, we want to make accounting accessible to everyone. All of our teams work hard to make life easy with our accounting software for associations. Discover our very complete accounting module without further delay. Automatically generated
All accounting information can be completed in a simple and automated manner. Benefit from income statement, annual balance sheet and automatically generated statistics . All these summary documents available in a single management software. On this module, you benefit from the interconnectivity of the software which allows you to automate the receipt of donations and subscriptions. Subsequently, each of these entries is automatically added to your association’s accounting.
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