In order to understand nonprofit accounting, it is important to know the difference between funds and programs. A true nonprofit accounting system tracks revenue from funds and expenses by programs or functional areas.
[Read more…] about Nonprofit Accounting: Difference Between Funds and ProgramsNonprofit Accounting
Nonprofit Accounting Methods: Cash vs Accrual
For-profit vs nonprofit accounting methods for small nonprofits are very different and more complicated. Not only do nonprofits need to account for service-based income like a for-profit, they must also account for donations, grants and fundraising event revenue.
[Read more…] about Nonprofit Accounting Methods: Cash vs AccrualNonprofit Net Assets and Statement of Financial Position Explained
The Statement of Financial Position of net assets presents current revenue, assets, and liabilities for nonprofits. This is the key difference between for profit vs nonprofit accounting.
[Read more…] about Nonprofit Net Assets and Statement of Financial Position ExplainedGAAP for Nonprofits Sets New Standards for Financial Statements
GAAP for nonprofits has set new fund classifications under FASB, altering the presentation of financial statements.
[Read more…] about GAAP for Nonprofits Sets New Standards for Financial StatementsNonprofit Profitability: 6 Steps to Fulfilling Mission-Based Goals
Most nonprofits don’t think in terms of nonprofit profitability when it comes to fulfilling their mission. But, today’s nonprofits have to think differently.
[Read more…] about Nonprofit Profitability: 6 Steps to Fulfilling Mission-Based Goals