What is the NPO Chart of Accounts?
Unlike the US, UK, and Canada, Australia does not have a special accounting standard for nonprofit organisations. Each government funder has its own financial acquittal terms, which makes it impossible for multi-funded organisations to easily prepare one form of acquittal. “Apples aren’t apples.” The compliance burden on nonprofit organisations is heavy because there are no standardised acquittal documents. The Chart of Accounts provides a common approach to the capture of accounting information by nonprofit organisations. If all parties use the same standard terms and categories, e.g. Wages & Salaries, Printing & Stationery, to refer to the same activities, this Chart will simplify the work of nonprofit organisations when acquitting government grants. Government departments and nonprofits will talk the same accounting language.
