Accounting is an important process for any business organization. Many people think that accounting is only for profit-oriented businesses, since these companies often have larger financial resources to manage and keep track of.
Contrary to popular belief, accounting is a regular task for nonprofit organizations such as research facilities, religious foundations, and social service organizations. Accounting helps these organizations organize financial matters such as grants, donations, budget, and payroll.
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To handle accounting responsibilities, businesses and nonprofit organizations usually employ the services of in-house accounting departments. Accounting teams are responsible for generating reports and documents about the business entity's financial status.
These reports are used by the business management to assess the condition of the company or organization, as well as determine any imbalances or discrepancies in the company's finances.
Accounting teams are often composed of qualified professionals such as certified public accountants (CPA). These CPAs occupy top positions in the accounting department and oversee all tasks and responsibilities handled by the team.
Head CPAs regularly meet with the company management for the updating of financial reports. The team may also have clerks or assistants who are in charge of bookkeeping and auditing, both of which are important accounting processes.
Many times, a corporation can easily give gifts of products they manufacture or distribute that the nonprofit needs, which reduces the expenses of the nonprofit. An example of a gift-in-kind would be computer hardware or software. Corporations are a good stable source of funding for a nonprofit and well worth the time invested.