What are the basic elements of accounting/bookkeeping?
Accounting is the method in which financial information is gathered, processed, and summarized into financial statements and reports. (CCH Incorporated) The goals of accounting are to ensure that financial data and economic transactions are accurately recorded so that it will be possible to generate the financial reports necessary for management planning and decision making. Small nonprofits often hire a bookkeeper on an hourly basis to maintain their books. It typically requires only a few hours each month to make the necessary entries and prepare a financial statement. Inexpensive software programs also are available but unless you have a basic understanding of bookkeeping, using a software program can be difficult. For tips on selecting a software package refer to the Non-profit Genie’s FAQ “What accounting software package should we buy?” at: http://search.genie.org/genie/ans_result.lasso?cat=Financial+Management.
