ACCO 425 Lecture 4: Lec 4
14 Feb 2017
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2/14/2017 1:29:00 am: in npo, it"s a system of accountability and translation of the goals in numbers. We are expressing our goals in terms of financial data. We show what we anticipate will be coming in and how we will spend it. It is what we are telling the users of the fs and what we are anticipating. It"s about achieving the goal and mission set up, not to focus on the numbers and getting a profit: in the beginning of the year, the entity creates a budget and is typically cash based. This is because we would typically not see depreciation on the budget. More like a cf type of system. Net: budget to actual should how in line we are with the budget. (normally happens every 3 months) Thus we will have a projected column as well. We compare the projected to the budget column. Budget is happening well before the actual.
