Managing a cooperative provides many of the same challenges of running any other business, but with an extra layer of tax and legal complexity and restrictions. At JPS, we understand the cooperative business model as well as reporting and regulatory requirements. We have extensive experience with the special issues affecting cooperatives and can provide the expertise you need to address your organization’s challenges.
JPS is actively involved in the National Society of Accountants for Cooperatives and the firm is an independent member of BDO Alliance USA, enabling our team to deliver solutions for the unique and complex issues that cooperatives face. Our goal is to maximize tax advantages while returning maximum annual profit to each member.
We help cooperatives with important financial and managerial challenges including:
- Member equity – each member’s use of your cooperative determines their equity. Planning and managing distributions, allocated patronage, equity redemption and retained earnings/permanent equity can help you minimize taxes while maintaining critical reserves.
- Balance between members – as a member organization your cooperative exists for the benefit of your members. It is critical to ensure that every member has a voice in the management of the cooperative.
- Financial pools – commodity cooperatives often pool finances for marketing that will benefit the entire membership. The proper structuring, management and coordination of pooled funds is essential.
- Patronage – calculating, allocating and distributing patronage and member sourced income is an important part of the ongoing management of your cooperative.
- Tax structure compliance – choosing the optimal tax filing structure is an important decision for any cooperative. Complying with the tax reporting requirements will help you maintain your tax status for nonprofit and for profit cooperatives.
Find out how JPS can be a strategic advantage for your Cooperative.