Initial setup questions for a small non-profit membership startup (UK)
zen148517 at zen.co.uk
Mon May 25 23:41:05 EDT 2015
I forgot to say that I treat them as a liability because if the CLUB
folds then they are refundable!
On 26/05/2015 04:36, Jill Terry wrote:
> As the OP has not come back on this one I guess they have it sorted.
> The UK does not have states but they do have local councils who are
> able to make bylaws. However, byelaws are restricted by the government
> and do not cover accounting or tax matters, which are governed by HMRC.
> As for whether or not subs are refundable is down to the club's
> rules. In our case they are not refundable.
> NOT an Accountant!
> On 25/05/2015 23:40, Mike or Penny Novack wrote:
>> I am NOT in the UK and so don't know your rules. But this is a case
>> where I'd THINK you'd need to refer to your bylaws and local
>> regulations. Answer the following question:
>> If a member pays advance several years advance membership, what
>> happens if that member either quits the organization or dies before
>> the time is up?
>> IF the advance payment gets refunded, then your treating it as a
>> liability is correct. If not, then I think it should all be current
>> income (and accounting for the fact that member shouldn't be dunned
>> for dues till some time in the future a matter of record keeping
>> having nothing to do with the books)
>>> Our members pay subs annually and often pay in advance. When they
>>> pay, say, 5 years subs, I place amount for one year in the
>>> income>subs account and then the rest as liability. ie...
>>> Bank Account: £50
>>> Income > Subs: £10
>>> Liabilities > Subs > 2016: £10
>>> Liabilities > Subs > 2017: £10
>>> Liabilities > Subs > 2018: £10
>>> Liabilities > Subs > 2019: £10
>>> Then, on 1st Jan each year I transfer the funds from liabilities >
>>> subs > #year to Income > Subs
This email has been checked for viruses by Avast antivirus software.
More information about the gnucash-user