Keeping Books With T3010 In Mind

Keeping books with Form T3010-1 in mind

This section contains ideas to help you map information from your accounting system to the lines on Form T3010-1.

Many of the ideas presented here came from volunteers at small and rural charities who shared their strategies with us. With a little research, you can find the accounts in your system that need to be entered in each line on the form. Once you've linked the information, you can save the map for future years.

Links to information on this page

Points to remember
Mapping accounting information to the T3010-1
Ideas for mapping information from manual systems
Ideas for mapping information from computerized systems
Reporting expenses by purpose category
See other pages in the Charity Filing Guide
Links to the CRA website

Points to remember

  • Be patient and persistent. You probably won't get all the accounts in the right place the first time. It's a learning experience. The effort will pay off in future years.
  • Review the map each year for changes to your accounts or changes to Form T3010-1.
  • Use the map to refresh your memory each year or as a support for volunteers or staff members who are learning to complete the form.

Mapping accounting information to the T3010-1

Ideas for mapping information from manual systems

  • Set up your accounting ledgers so that the columns correspond to T3010-1 line numbers.
  • Write the T3010 line numbers beside the related rows or columns in your ledgers.
  • Write the T3010-1 line numbers on your accounting statements.
  • Write ledger column names into a blank T3010-1 that you can use as a template.

Ideas for mapping information from computerized systems

  • Write the T3010-1 line numbers beside the related accounts on the trial balance.
  • Write the T3010-1 line numbers on the accounting statements.
  • Write account numbers into a blank T3010-1 that you can use as a template.
  • Create a custom T3010-1 report using your accounting software.
  • Use one of the default reports in your accounting software and tweak it to produce a report you can use to complete Form T3010-1. Some accounting programs include reports designed for nonprofit organizations that might be a good starting point.

Reporting expenses by purpose category

Most accounting systems set up accounts by expense type, not the end purpose of that expense. For example, one account for travel expenses, not four accounts: one for charitable program travel, one for management and admin travel, one for fundraising travel, and one for political activity travel.

In addition to reporting expense totals according to account types, the two financial information sections on Form T3010-1 require that you report the expense totals according to activity categories:

  • Section D asks you to report expenses related to charitable programs and management and administration.
  • Schedule 6 asks you to report expenses related to charitable programs, management and administration, fundraising, and political activities.

The amount of work involved in re-grouping expenses by purpose rather than expense type depends on how your accounts are set up and how many transactions your charity processed during the fiscal year.

If you have a flexible accounting system, you may be able to set up a sub-account for each purpose. The sub-accounts would feed into a main account. This would allow you to run a report by expense type or by individual purpose categories.

If you have a small accounting system, you may have to rake through printouts or ledgers. Print each expense account. Then use numbers or highlighters to mark individual transactions according to the purpose of the expense. Add the amounts related to each purpose together. Check that the total of the purpose categories balances with the total of the expense account. Use a spreadsheet to track the amounts for each purpose from different expense accounts.

The trick is to know which purpose a given expense belongs to. You may have to do some digging:

  • Ask the person who signed the invoice what the expense was for.
  • Ask approvers to record the purpose on each invoice they sign.
  • Include a short code to identify the purpose when you enter transactions into your accounting system.
  • Include the name of the traveller when entering expense account claims, airfares, or other travel expenses.

See other pages in the Charity Filing Guide

See Keeping Records for practical ideas to improve your record-keeping systems.

Links to the CRA website

Charities Directorate website
http://www.cra-arc.gc.ca/charities/

Guide T4033-1 Completing the Registered Charity Information Return
http://www.cra-arc.gc.ca/E/pub/tg/t4033-1/README.html

The CRA Charities Listings
http://www.cra-arc.gc.ca/chrts-gvng/lstngs/menu-eng.html