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Complicated question: REAL simple answer, which way oversimplifies it... SHOULD BE accrual, but that is not always possible depending on staff ability and resources.
Well, really it depends on the type of non-profit but it's been my experience that both methods are used, the cash method for most receivables aka "donations" and when purchases are made. We deduct the purchase when the bill is received. The accrual method is used when accounting for the grants that are awarded but not yet received. Hope that explains it a little better. :)
What else can I help you with?
What are major accounting differences between nonprofit and for-profit organizations?
Tax exemption, restrictions on funds, and sources of revenue.
What is meant by non profit accounting?
Nonprofit organizations exist to pursue the missions that address the needs of the society. Nonprofit organizations serve in a variety of sectors, such as religious, education, health, social services, commerce, amateur sports clubs, and the arts.
Why do organizations need management accounting?
Organizations need management accounting so that managers can know how their departments are performing. Without managerial accounting, managers will be operating in the dark.
What are some ways in which accounting for health care organizations especially not-for-profit ones tends to differ from accounting in other industries?
accounting for healthcare organizations in not-for-profit ,tend to differ from accounting in other industries.
What is management accounting information used for?
Management accounting or managerial accounting is concerned with the provisions and use of accounting information to managers within organizations, ...
What has the author Edward J McMillan written?
Edward J. McMillan has written: 'Essential Accounting, Tax, and Reporting Requirements for Not-for-Profit Organizations (ASAE Financial Management Series)' 'Not-for-profit accounting, tax, and reporting requirements' -- subject(s): Nonprofit organizations, Accounting, Taxation, Finance, Financial statements 'Model Accounting and Financial Policies & Procedures Handbook for Not-For-Profit Organizations (Asae Financial Management Series)' 'Not-for-profit budgeting and financial management' -- subject(s): Nonprofit organizations, Accounting, Finance, Corporations, Budget in business 'Model policies and procedures for not-for-profit organizations' -- subject(s): Accounting, Finance, Handbooks, manuals, Handbooks, manuals, etc, Nonprofit organizations 'Essential financial considerations for not-for-profit organizations' -- subject(s): Nonprofit organizations, Accounting, Taxation, Finance
What has the author Michael H Granof written?
Michael H. Granof has written: 'Government and not-for-profit accounting' -- subject(s): Nonprofit organizations, Accounting, Public Finance, Standards 'Financial accounting : principles and issues' 'Government and Not-For-Profit Accounting' -- subject(s): Accounting, Nonprofit organizations, Public Finance, Standards
What has the author Christian Horak written?
Christian Horak has written: 'Controlling in Nonprofit-Organisationen' -- subject(s): Nonprofit organizations, Accounting
What are major accounting differences between nonprofit and for-profit organizations?
Tax exemption, restrictions on funds, and sources of revenue.
What has the author Leon Edwards Hay written?
Leon Edwards Hay has written: 'Governmental accounting' -- subject(s): Accounting, Public Finance 'Essentials of accounting for governmental and not-for-profit organizations' -- subject(s): Accounting, Administrative agencies, Nonprofit organizations, Public Finance
What has the author Emerson O Henke written?
Emerson O Henke has written: 'Accounting for nonprofit organizations: an exploratory study' -- subject(s): Accounting, Charities
What is meant by non profit accounting?
Nonprofit organizations exist to pursue the missions that address the needs of the society. Nonprofit organizations serve in a variety of sectors, such as religious, education, health, social services, commerce, amateur sports clubs, and the arts.
What has the author John P Listro written?
John P. Listro has written: 'Accounting and reporting for nonprofit organizations' -- subject(s): Nonprofit organizations, Accounting, Financial statements
What has the author Ray M Powell written?
Ray M. Powell has written: 'Accounting procedures for institutions' -- subject(s): Accounting, Nonprofit organizations 'Studies in the Management of Not-For-Profit Institutions'
What has the author Robert Newton Anthony written?
Robert Newton Anthony has written: 'Essentials in Accounting' 'Instructor's manual to accompany Management control systems' 'Rethinking the rules of financial accounting' -- subject(s): Accounting, Financial statements 'Fundamentals of management accounting' -- subject(s): Cost accounting, Managerial accounting, Accounting 'Management control systems and corporate finace MBA 521' 'Management control in nonprofit organizations' -- subject(s): Nonprofit organizations, Accounting, Managerial accounting 'Shoe machinery: buy or lease?' -- subject(s): Boots and shoes, Trade and manufacture 'Management accounting principles' -- subject(s): Managerial accounting, Cost accounting 'Accounting principles' -- subject(s): Accounting, Managerial accounting 'A reference guide to essentials of accounting' -- subject(s): Accounting
Are all Nonprofit Organizations reputable?
No, not all nonprofit Organizations are reputable, you must search for their history and judge on your own.
What has the author Paul Palmer written?
Paul Palmer has written: 'Financial management in the voluntary sector' -- subject(s): Accounting, Case studies, Finance, Nonprofit organizations
