Sooner or later, every NFP organisation may have to experience the difficult process of changing the person responsible for it’s tax affairs. There may be various reasons for that – the old tax administrator might have undergone a change in their circumstances that prevents them from fulfilling their responsibilities, or there may be internal problems that would require replacing key board members, such as the treasurer or another office bearer responsible for the financial affairs of the organisation.

No matter what the reason is for such a change, you need to be prepared for it. The handover may seem daunting at first, but it will be quite easy if you remember a simple three-step process that will ensure it is as seamless and error-free as possible. The process is described below and all the paperwork you need (don’t worry, it is not a lot!) is available to download, so make sure you have a look and bookmark it for later use.

Step 1: Arrange a Handover Meeting

One of the most important things you need to do to ensure a painless handover is to arrange a meeting between the new tax administrator and his predecessor. This meeting is crucial as the two of them will go through the major financial processes that take place in the organisation and will make sure the new administrator is aware of all the usual practices that are being followed. All this will ensure that the financial processes of the organisation will be able to go on uninterrupted even though there is a handover taking place.

Step 2: Go Over the Handover Checklist for NFP Administrators

A great tool prepared by the Australian Tax Office, the Handover Checklist for Non-Profit Administrators will help the outgoing tax administrator handover the organisation’s financial affairs to the incoming administrator. The checklist consists of 6 sections that will make sure all financial aspects of the organisation are taken care of: Registrations; Legal Structure; Tax Concessions; Your Workers; Reporting and Paying Tax; Record Keeping. At the end of the checklist, there is an appendix with supplementary information that provides explanatory notes for the previous sections. After filling in all the sections, the outgoing administrator will be able to identify any outstanding issues and provide details for them to his successor along with all the relevant documentation and paperwork.

Step 3: Exchange Contact Details

It is imperative that you arrange an exchange of contact details between the old and new administrators, which will prove extremely helpful in case an issue is found. While a handover meeting will probably help the new administrator get used to the practices in the organisation, it will certainly not cover absolutely everything about its finances. With time, however, your new office bearer will explore more and more of the organisation’s affairs and may encounter things they don’t understand – in which case, the old administrator will be able to lend a helping hand.

This easy three-step process will certainly make it easier to organise a handover of your company’s financial affairs. Make sure you keep the handover checklist someplace safe in case you need it, and consider bookmarking this post for a future reference. If you are reading this because a handover is already taking place in your organisation, good luck with it!