Thank you for the opportunity to help you with your question!
What unique accounting issues may
be faced by a nonprofit organization?
profit organizations, nonprofit organizations are usually faced with some
complex accounting issues. One of these issues is how to track the grants they
receive from different well wishers. Since these organizations are not legally
supposed to adhere to certain accounting procedures and reporting at the end of
their fiscal year, it may quite hard for the donors or even its board members
to monitor the movement of such grants. Thus the fact that there is no standard
procedure makes it a real accounting issue for these organizations.
real accounting issue is how to track the pledges made by its different donors.
The main issue here it to accounting how much of such pledges has being settled
and how much is due. Moreover, managing the payroll of such organizations is
still an accounting issue for nonprofit organizations. These firms usually lack
the required expertise to effectively manage this expenditure issue. Other accounting
issues which these firms usually have to face are how to manage its cash flows
not to mention how to understand them and also their optimal staffing levels of
Please let me know if you need any clarification. I'm always happy to answer your questions.
Oct 4th, 2015
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