Differences of Accounting for Government & Nonprofit organization versus for profit business.

Business accounting has always been considered by some people to be the model for government accounting. But there are differences between one and another. Government and not for profit are governed mainly by their budgets. The budget covers the governmental decisions on how to raise money and where to spend it. Traditionally the budget takes center stage and one of the most public decisions in the government. They may have several budgets for the different funds in government and may be backed by the force of law. Nonprofit accounting is guided by FASB Statement of Financial Accounting Standards Nos. 116 and 117. Nonprofits usually don't have ...

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