handling accounting. accounting: a system for providing financial information about an organization

Handling Accounting

Accounting:

A system for providing financial information about an organization.

Accounting includes:

• Documenting • Classifying• Analyzing• Interpreting financial records• Auditing• Taxes

Audit

• Tests accuracy and completeness of financial records

• Cover letter• Financial statements• GAAP notes• Fiscal year comparisons

Reasons to audit

• Funder request• Board reassurance• Confirm finances• Develop financial systems

Not-for-Profit differences

• Accounting for contributions• Capitalizing and depreciating assets• Modified cash-basis accounting• Functional expense• Development financial statements

Accounting system

• Procedures for recording• Chart of accounts• General ledger• Journals & subsidiary • Checkbook• Accounting procedures manual

Why do accounting?

• Meet government requirements• Understand financial status• Effective resource use• Prevent overspending

Not-for-Profit accounting steps• Find an accountant• Choose software• Conduct transactions• Analyze transactions• Record in journals• Post to ledger• Analyze ledger• Make corrections