The accounting entries file (FEC) must be submitted to the tax authorities in the event of an accounting audit.
This single file contains all the accounting data from the organization's computerized system (around twenty fields to be submitted to the authorities). Entries are listed in chronological order and validated, since the FEC must accurately reflect your accounting records.
Currently, a FEC file generated by another software cannot be used to import entries into Springly. We recommend using the opening balance to carry forward your historical data.
- What is the FEC file used for?
- Does your nonprofit need to provide the accounting entries file?
- What does it contain?
- When do you need to submit this file to the authorities?
- How do I generate my file in Springly?
- Supporting documentation to include
What is the FEC file used for?
The FEC serves as the basis for certain tax authority audits, including data classification and cross-referencing.
It allows the accounting auditor to:
- Verify that the accounting records match the tax returns filed;
- Save time during the audit;
- Reduce the amount of time spent on-site at your organization.
It is generated directly from the accounting module.
Does your nonprofit need to provide the accounting entries file?
In principle, accounting audits only apply to nonprofits that are required to maintain computerized accrual accounting, as well as those subject to commercial taxes.
In practice, audits are fairly rare — but you can generate a FEC file instantly whenever you need one.
To learn more, check out this dedicated article: Nonprofit taxation: what regulations apply?
What does the accounting entries file contain?
The accounting entries file is a digital document that contains all records from your nonprofit's accounting system for a given accounting period.
It must be generated in a specific format and must include all journals in your organization's accounting records. Inventory entries and carried-forward entries (C/FWD) must also be included.
When do you need to submit this file to the authorities?
The auditor will request the file at the time of their first visit.
It can be provided on any physical storage medium: CD, DVD, USB drive, external hard drive, etc.
How do I generate my file in Springly?
To enable this option, go to Settings > Accounting, then turn it on from the Accounting Documents section.
Can't see the FEC & other button? This option is only available to platforms with a registered address in France. If that applies to you, check that an address has been entered on the Settings > Your nonprofit page.
Once the option is enabled and your accounting period is closed, you can generate your file from the Exports > Accounting page: click the Export button under the Accounting Entries File (FEC) section.
The file is emailed in .txt format to the person who generated it.
The export usually takes around ten minutes, but may take longer if the FEC contains a large number of entries.
Supporting documentation to include
The auditor may ask you for a explanatory note to accompany the FEC file.
This note explains how the file is structured and the choices made by the software in presenting the data.
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