Handling Accounting

1
Handling Accounting
2
Accounting

• A system for providing financial information
  about an organization.

3
Accounting includes

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

4
Audit

• Tests accuracy and completeness of financial
  records
• Cover letter
• Financial statements
• GAAP notes
• Fiscal year comparisons

5
Reasons to audit

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

6
Not-for-Profit differences

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

7
Accounting system

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

8
Why do accounting?

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

9
Not-for-Profit accounting steps

• Find an accountant
• Choose software
• Conduct transactions
• Analyze transactions
• Record in journals
• Post to ledger
• Analyze ledger
• Make corrections