What Are the Basics of Accounting For Non-Profits?

Non-profit organization accounting is accounting for government agencies and other non-profit organizations (such as schools, hospitals, scientific research institutions, libraries, and charities). In China, it is divided into three parts: general budget accounting, administrative unit accounting and public institution accounting. ^[1]

Nonprofit Organization Accounting

Right!

Non-profit organization accounting is accounting for government agencies and other non-profit organizations (such as schools, hospitals, scientific research institutions, libraries, and charities). In China, it is divided into three parts: general budget accounting, administrative unit accounting and public institution accounting. ^[1]

As a branch of accounting, it has many similarities with corporate accounting in basic accounting theories such as accounting objects, quality characteristics of accounting information, basic principles, basic assumptions, and expression of accounting information, but due to its organizational goals and sources of financial resources The characteristics of financial resource allocation mechanism, fiduciary responsibility and performance evaluation make non-profit organization accounting unique.

In developed countries, the accounting of non-profit organizations started earlier and the system is relatively complete, and a relatively standardized accounting system for non-profit organizations has been formed. The academic world s research on accounting theory of non-profit organizations is also relatively systematic. However, the rise of research on its accounting system is still a matter of recent decades. The research on accounting of non-profit organizations has only started formally in recent years, and has developed rapidly in recent years. Due to the short period of research, the research as a whole is not very comprehensive.