QUELAB

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policies:accounting

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Accounting Procedures

The Treasurer is responsible for the bookkeeping for the space, as well as the state, federal, and local taxes and compliance information.

Bookkeeping

The treasurer is responsible for registering funds which come in, and for paying the bills the President and the Directors have accrued. Being able to track down every single penny is nice, but not required. Experience with double-entry bookkeeping is very nice, but accounting licenses are not.

Reimbursement of Expenditures

In order to be reimbursed for expenditures undertaken on behalf of the space, payees will have to have their expenses approved by at minimum the President (if the transaction is below $100) or the Directors (if the transaction is above $100). To expedite approval, it is key that the expected expense is budgeted for, so we are aware that it is coming. For non-budgeted expenses, it is also suggested to get the approval of the Area Captain for the area where the purchase will be utilized, so that we can ensure that the purchase will go to good use. The President can override the lack of Area Captain assent, and the Directors can override the lack of Presidential assent. For minor expenses, it is suggested that a donation be considered instead, which may be tax-deductible for the donor.

Donations

As a 501(c)3 entity, we are able to issue tax receipts for donated goods and funds. Due to the varied nature of work, donations of services cannot be given a receipt. Receipts should be issued on a quarterly basis for donations below $250 in value, and monthly for donations above $250. These receipts will be retained for Federal Tax reporting purposes.

Taxes

Federal Taxes

Quelab, by being a 501(c)(3) entity is obligated to file an IRS990 annually via an electronic submission. This 'e-postcard' indicates our beginning balances, our ending balances, and a source of our income (program income, donations & memberships, and unrelated income). If our unrelated income is more than 33.3333% of the rest of our income, we will owe federal income taxes on the full amount of unrelated income.

State Taxes

If we have to pay Federal Taxes on our unrelated income, we will also have to pay state corporation taxes on that amount as well.

Local Taxes

Even if we don't breach the 33.333% of unrelated income, we may be obligated to pay Gross Receipts Taxes (GRT) based on our county of operation (Bernalillio), which we pay to the state directly. We are also expected to pay the county property tax on buildings and equipment we own. We pay the property-tax on the building we lease as a part of the monthly common-area-maintenance fees.

Compliance

To operate a business in the City of Albuquerque, there are many things you have to do to get into the right place, regulatorily-speaking. This is not a one-stop-shop and requires dealing with a number of interlocking agencies.

NM Attorney General

We must file with the Attorney General's Office of Charities to be classified as a New Mexico Charity, and solicit donations from the general public. As a charity, we can also apply to become tax-exempt for paying GRT at other businesses, and can get other perks with the Taxation & Revenue Department.

NM Secretary of State

We must file with the Corporation Commission annually, to be classified as a “corporation in good standing”, which is a requirement for a lot of other things.

NM Taxation & Revenue Department

We must apply for tax-exempt status for NM GRT with the TRD. We use our Tax ID with the state (from when we file our bi-annual tax form) and they issue us with a tax-exempt number which exempts us from sales taxes in the State of New Mexico. However, this does require having the person with the tax number do our shopping…

CABQ Business License

We must file with the City of Albuquerque annually, to be granted a city business license. Having a business license is required for having an occupancy permit.

AFD Fire Inspection

We must file with the City Fire Marshal to receive a fire inspection with a listing of our allowable occupancy number. Having a fire-inspection is required for having an occupancy permit. To get the Fire Marshal out to perform an inspection, you must also have a registered set of plans on file with the City Planning Office.

CABQ Planning Office

We must employ a registered architect to submit a plan of the building which matches the layout of the building, as well as conforms to City Building codes (number of exits, length of hallways, number of bathrooms, etc). This is required to get a Fire Inspection permit.

CABQ Occupancy Permit

To be able to occupy a building as a business and have customers visit us, we must have an certificate of occupancy. The application for this requires both a city Business License and a Fire Inspection permit.

policies/accounting.1476384794.txt.gz · Last modified: 2016/10/13 18:53 by Geoff Nicholson