Non Profit Accounting, Boston MA

in Accounting

Accounting is important for administrative purpose at the same time for any organization, be it financial or non-financial. Accounting is not only done for Profit Organization it is also done for Non Profit Organization. The accountability is mainly to ensure the inflow and outflow of the fund in the management. This act of the essence of accounting where the business body relies on the wizards of he accounting team inside the organization.  The accounting procedure between a Non Profit Organization and a Profit Organization is same especially where the income and expenses of the institute is concerned, just that it is a little tricky in a Non Profit Organization. The accounting has to keep track of further financial information in order to create more specified reports.

The Non Profit Institute has tax exemption status, which means that he inflow of fun needs to be duly accounted properly and financial statements have to be perfectly maintained. Not only this, the nature of the fund received also needs to be properly filed. The contribution to these funds mainly cone from pledges or fund-raisers or donations or any kind of membership dues or any other events too. Since there are many types of funds coming into the Non Profit Body, they have to perform a fund accounting. The main purpose of fund accounting is to ensure that the expenses made by the administration are authentic because some of resources are restricted to certain expenses only. For example, the shareholders and the board of control can check if the movable and immovable assets’ funds were used to acquire any other assets. This ensures that the trust is using the resources are being used appropriately which in turn helps the financial statement keep in par with the accounting standards.

The United States Internal Revenue Service instructs Non Profit Organization to submit their financial statement. This is mainly done to scrutinize the functional expenses undergone by the body, these expenses deal with the outflow of money during activities such as program services or fund raising events. These expenses are included in the Annual Report of the Organization.

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Non Profit Accounting, Boston MA

This article was published on 2011/10/18