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