Can Someone Explain Accounting System In Non-profit Organization?
ACCOUNTING SYSTEM IN NON-PROFIT ORGANIZATIONS Non profit organizations like business entities are also large, medium and small in size. A large organization will be having a complete accounting system along with a full fledge accounts department where the double entry accounting will be followed whereas, medium or small sized non profit organization will be maintaining few books of accounts and will not be having proper accounting system. Small size non-profit organization We can observe so many examples of small size non-profit organizations around us, the very commonly understood example will be of a street library where cash book would have been maintained as the only book of account and finally a summary of that cash book is prepared at the end of the year just to have an overview of the total receipts and payment made during the year. Large size non-profit organization On the contrary, member of the large size organization will be interested in all financial results of the entity
