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Top Tips for Year End

Making your life easier during the financial year end

Thursday 4th April 2019

It is coming up to that time of year where you need to start getting ready to do the end of year tax receipts, and year end reporting.It can be overwhelming but with a little planning and a little help from Infoodle we can make the whole process easier. Here’s a couple of tips and hints to make it less stressful and to get you started.

How do I know when to start the receipting?

Depending on your organisation, if you issue all your tax receipts at the end of the year it is best to process the transactions throughout the year and not leave it all to the end. If there are any errors they will be identified and can be rectified much easier.The more prepared you are the better it is.If you issue receipts throughout the year then any time is a good time, but closer to the donation being made is best. For many it doesn’t matter when you do your receipting, it can be as donations come in throughout the year or all at the end of the financial year. You may want to send a special acknowledgement for one-off larger donations but include them in the end of year receipt.

What is the infoodle best practice?

Infoodle best practice is to Send out statement(s) during the year and then generate receipts once a year. There are a variety of ways that different organisations choose to generate their receipts;

  • One receipt run after year end
    For organisations such as churches, they will often collate their transactions throughout the year, and then once the year end is completed, they issue a tax receipt which is a total of the activity for a person during the just completed year.
  • On donation receipting
    For organisations that receive occasional donations which may only be once or twice a year from individuals and they wish to be responsive to them, they may wish to issue a receipt at the same time they received the donation.
  • Periodic receipting
    For some organisations it may be convenient for them to process their receipt run once a month, quarter etc.
  • Mixture of the above
    Depending on the type of organisation and donations received there may well be a combination of the above receipting processes happening throughout the year.

What is the difference between a Receipt and a Statement?

Different countries use different terms which can cause confusion, for example;

A Receipt (also referred to as Contribution Statements in some countries) is a tax document with a unique number given on receiving a payment/donation.
A Statement allows you to print off a summary of transactions/activity for a chosen period but does not generate a unique number as a receipt does, leaving it ready to be receipted at year end.

Over the years there have been a few common questions raised at this time or year, I thought it may be good to share a few with you.

Does infoodle have a year end checklist so I know I have everything ready and setup before receipting?

Infoodle does not have a year end process in the same way that an accounting system does but we do have a checklist for you to run through to ensure that you and your data are ready for your year end, whenever it may be.

  1. Finance system settings - Ensure your Tax year starting date is set, Details of the organisation issuing the tax receipt, and charity number is correct.
  2. Email and receipt templates have been created with the correct year, logo and wording.
  3. Have all your forms and transactions been processed and reconciled.
  4. Check your numbers match your accounting system.
  5. Check your individual donors transactions, giving numbers match and if the receipts are to be issued to the individual, combined household or organisation.
  6. For infoodle clients check out the infoodle help centre for further details.

It may seem overwhelming, but don’t worry, just take one step at a time. If you are an infoodle client and need some help, just give us a call or send us an email.If you are not yet an infoodle client and need some help contact us for a demo on how infoodle can make your tax year end a lot less stressful.

www.infoodle.com

+64 (0)7 579 3085