Many organisations exceed the GST turnover threshold but remain unregistered. This results in inaccurate reporting, missed GST credits, and compliance risks with the ATO.

Xero or MYOB bank reconciliations are often incomplete or skipped. This leads to incorrect cash balances and can hide duplicate transactions or missing deposits.

Duplicate entries for invoices or expenses inflate expenditure and reduce the reported surplus. Regular reviews and audit procedures are key to identifying and correcting these issues.

Missing invoices or receipts create a significant risk of misuse of funds, duplicate or unauthorised payments, and non-compliance with audit and governance requirements. Under both the Associations Incorporation Act (Qld) and the Australian Charities and Not-for-profits Commission Act 2012, all expenditure must be properly documented and supported to verify that payments were made for legitimate organisational purposes. Failing to keep adequate records can lead to audit qualification, repayment of funds, or loss of grant eligibility.

Failing to register for Single Touch Payroll (STP), superannuation, or workers compensation exposes an organisation to significant statutory and financial risks. Under the Australian Charities and Not-for-profits Commission Act 2012, the Fair Work Act 2009, and relevant state workers compensation laws, all employers are required to report employee earnings through STP, make timely superannuation contributions, and maintain workers compensation coverage. Non-compliance can result in ATO penalties, loss of funding eligibility, and personal liability for committee members if employee entitlements are unpaid.

Not maintaining an asset register or depreciation schedule creates a risk of misstated financial position, loss of assets, and non-compliance with statutory reporting obligations. Under the Associations Incorporation Act 1981 (Qld), incorporated associations are required to keep accurate accounting records, including details of assets and their value, to properly reflect the organisation’s financial affairs. Without an up-to-date asset register, committees cannot verify ownership, monitor asset condition, or ensure assets are adequately insured.

Failure to stay informed about legislative changes under the Associations Incorporation Act 1981 (Qld) and the Australian Charities and Not-for-profits Commission Act 2012 can result in significant governance and reporting breaches. These Acts require committee members to ensure that financial records are properly kept, annual statements and reports are lodged on time, and the organisation continues to meet eligibility and accountability standards. Recent amendments to both Acts have strengthened director and officer duties, reporting thresholds, and related-party disclosure requirements. Lack of compliance may lead to loss of registration, funding ineligibility, or personal liability for management committee members.

Many community organisations are unsure of the difference between cash and accrual accounting, yet choosing the wrong method can lead to misstated income and expenses.

Under the Associations Incorporation Act 1981 (Qld) and the Australian Charities and Not-for-profits Commission Act 2012, financial statements must accurately reflect the organisation’s financial performance and position.

In cash accounting, income and expenses are recorded only when money changes hands — for example, a grant payment received in July is counted entirely in that year, even if some funds relate to the following period.

In accrual accounting, income and expenses are recorded when they are earned or incurred, not when cash is received or paid — so part of that grant would be deferred to the next year to match the related expenses.

Using the incorrect method can distort results, make budgets unreliable, and create difficulties when reconciling with audit or funding requirements.