Following is a transcript of this podcast episode, with audio/video below.
Welcome to the Two-Minute Treasurer’s Tip Podcast. I am your host Cyndi Meuchel with MoneyMinder where our goal is to make your life as a volunteer way easier.
Mckenzie asks: Why does MoneyMinder name their financial years the way they do? I find it confusing.
Good question, Mckenzie. It seems on the surface as if it might be arbitrary. Here’s the deal though. For us, the Financial Year 2022, for example, means your financial year STARTS in 2022. So, if you’re on a July 1 start, Financial Year 2022 means that your financial year begins on July 1, 2022 and ends on June 30, 2023.
Some folks would prefer we call that the 2023 financial year. The reason we call it the 2022 financial year is because that’s what the IRS calls it.
Since many groups report to the IRS to keep their tax-exempt status, MoneyMinder helps with that reporting, so we feel it’s prudent that we are consistent with the IRS. We don’t want you to inadvertently report on the wrong time frame, by us calling it something different. I hope that helps clear things up.
That’s it for today! Thanks for listening! If you have a question you’d like answered, just email it to me at [email protected] My name is Cyndi Meuchel and this is your Two-Minute Treasurer’s Tip for today.