Skip to Main Content
Wiley Not-for-Profit GAAP 2014: Interpretation and Application of Generally Accepted Accounting Principles
book

Wiley Not-for-Profit GAAP 2014: Interpretation and Application of Generally Accepted Accounting Principles

by Richard F. Larkin, Marie DiTommaso
March 2014
Intermediate to advanced content levelIntermediate to advanced
584 pages
17h 54m
English
Wiley
Content preview from Wiley Not-for-Profit GAAP 2014: Interpretation and Application of Generally Accepted Accounting Principles

17 IMPORTANCE OF BUDGETS TO A NOT-FOR-PROFIT

Perspective and Issues

Functions of the Budget

Steps for Preparation

Levels of Reserves

Responsibility for Budget Preparation

Monthly and Quarterly Budgets

Allocating an Annual Budget to Monthly or Quarterly Periods

Illustrative Expense Budget

Timely Interim Statements

Importance of Budget Comparison

Alternate Presentation

Variable Budget

Narrative Report on Deviations from Budget

Action by the Board

A Five-Year Master Plan

Suggested Procedures

Setting goals

Estimating costs

Plan for income

Illustrative Master Plan

Conclusion

PERSPECTIVE AND ISSUES

It is important that any potential financial problems of a not-for-profit organization be anticipated so that the board or management can take steps to solve these problems on a timely basis. A budget prepared by management and approved by the board is the principal tool that should be used. A budget also represents an opportunity to plan ahead for several years in an effort to foresee social and economic trends and their influence on the organization's programs. Reporting actual results in comparison to a budget should not be confused with financial reporting under GAAP. Not-for-profit organizations often adopt budget preparation methodologies that include some, but not all, GAAP requirements. For example, a budget may be prepared on a basis consistent with the accrual basis of accounting for most revenues and expenses. On the other hand, budgets prepared by not-for-profit organizations often ...

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Start your free trial

You might also like

Wiley Not-for-Profit GAAP 2015: Interpretation and Application of Generally Accepted Accounting Principles

Wiley Not-for-Profit GAAP 2015: Interpretation and Application of Generally Accepted Accounting Principles

Warren Ruppel, Marie DiTommaso, Richard F. Larkin
Wiley GAAP 2008

Wiley GAAP 2008

Barry J. Epstein, Ralph Nach American Express Tax and Business Inc., Colorado Steven M. Bragg Englewood
Wiley Not-for-Profit GAAP 2017

Wiley Not-for-Profit GAAP 2017

Richard F. Larkin, Marie DiTommaso, Warren Ruppel

Publisher Resources

ISBN: 9781118734308Purchase book