What is the Difference Between Cash-Basis and Accrual-Basis Accounting?
, for a discussion of the difference between cash- and accrual-basis accounting. Departments or Programs Many nonprofits need to track expenses and/or revenue by department or by program. For example, an organization serving the mentally retarded which has several residences might want to keep track of expenses for each residence. It may also have training programs in areas such as vocational skills, daily living skills, entitlements, etc. which serve all residents and by which expenses or revenues need to be tracked. Ideally, the software should report costs by residence or by training program across the whole agency.
