Initial setup questions for a small non-profit membership startup (UK)

[Jill Terry]

Michael

I forgot to say that I treat them as a liability because if the CLUB 
folds then they are refundable!

Jill

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.
>
> Cheers
> Jill
> 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)
>>
>> Michael
>>
>>
>>
>>>
>>>
>>> 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
>>>
>>> Cheers
>>> Jill
>>>
>>>>>
>>>>
>>
>
>


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