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Differences between for profit and nonprofit financial accounting and reporting

The Alliance for Nonprofit Management answers the key questions concerning the differences between the basic accounting practices of nonprofits and for-profits. There are several key differences to be aware of, mainly in the areas of:

  • Accounting for Contributions
  • Capitalizing and Depreciating Assets
  • Use of Cash- and Modified Cash-Basis Accounting
  • Functional Expense Classification

Resource:

  1. Frequently Asked Questions about Financial Management: Alliance for Nonprofit Management
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