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Id 40543163

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Accounting
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Los Angeles Pierce College
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Running head: PROFIT AND NON-PROFIT ACCOUNTING TO GOVERNMENT 1
Profit and Non-Profit Accounting to Government
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PROFIT AND NON-PROFIT ACCOUNTING TO GOVERNMENT 2
Introduction
Organizations around the world are established to serve different purposes. However, all
these organizations fall under two categories, either for-profit or non-profit. Regardless of these
organizations’ diverse purposes, they are usually all run on finances. Governments, where
organizations operate, provide the necessary conducive operating environment to promote fair
competition, and compliance. Usually, organizations are required to maintain openness to the
management, lenders, shareholders, tax authorities, investors, suppliers, and the general public
depending on the type of organization. This is done through reporting on how organizations
acquire and use finances, and where they make profits or losses for organizations that fall under
profit. This is done through for-profit or non-profit accounting approaches. This paper seeks to
compare and contrast for-profit and non-profit accounting.
Similarities between For-profit and non-profit Accounting
The accounting for for-profit, government, and non-profit organizations share several
similarities. To start with, for-profit, government, and not-for-profit organizations require a
greater level of transparency (Granof, et al. 2021). This is because the stakeholders always want
to know how their money is being used. In addition, both also require the least reduced human
error possible. Furthermore, both for-profit and not-for-profit organization accounting are
similar in that their financial statements need to be prepared on a timely basis to maintain
stakeholders’ trust.
Differences between for-Profit and not-for-profit Accounting
For-profit organizations are entities whose main goal is to maximize their profits. On the
other hand, non-profits organizations operate to accomplish a charitable mission or objective as

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Running head: PROFIT AND NON-PROFIT ACCOUNTING TO GOVERNMENT Profit and Non-Profit Accounting to Government Student’s Name Affiliation Institution 1 PROFIT AND NON-PROFIT ACCOUNTING TO GOVERNMENT Introduction Organizations around the world are established to serve different purposes. However, all these organizations fall under two categories, either for-profit or non-profit. Regardless of these organizations’ diverse purposes, they are usually all run on finances. Governments, where organizations operate, provide the necessary conducive operating environment to promote fair competition, and compliance. Usually, organizations are required to maintain openness to the management, lenders, shareholders, tax authorities, investors, suppliers, and the general public depending on the type of organization. This is done through reporting on how organizations acquire and use finances, and where they make profits or losses for organizations that fall under profit. This is done through for-profit or non-profit accounting approaches. This paper seeks to compare and contrast for-profit and non-profit accounting. Similarities between For-profit and non-profit Accounting The accounting for for-profit, government, and non-profit organizations share several similarities. To start with, for-profit, government, and not-for-profit organizations require a greater level of transparency (Granof, et al. 2021). This is because the stakeholders always want to know how their money is being used. ...
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