What of accountings role for non-profits?
Many non-profit organisations fail because of poor accounting systems. “Non-profit” does not imply “for-loss.” A non-profit organisation, while not maximising profits should nevertheless be sustainable and financially viable. Without good accounting and control systems, it is hard for non-profits to be governed well. Non-financials are particularly important for non-profit entities, as financial performance does not indicate how efficient or effective a non-profit has been in the accomplishment of its mission. Thus the need for good management accounting tools such as BSC and ABC is acute for non-profits. My Cambridge Hospitals case illustrates how a hospital can design and implement a simple but highly effective ABC accounting system. Is there an overload of accounting standards, making compliance tough? Do newer financial products pose a challenge for accountants, when it comes to fuller disclosure? We need superior accounting standards, because the transactions in the business world
