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Sample Essay on Accounting System for a Non-Profit Organization

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Sample Essay on Accounting System for a Non-Profit Organization

The non-profit organization’s accounting system shall emphasize on reliability, relevance (suitability for decision-making), and convenience (ease of use). Theorganization shall utilize Sage 300 ERP, which is a mid-market enterprise accounting and management application. This is a suitable application for the organization since it suits both the accounting and management aspects of organizational administration (with modules and features in both), thus presenting cost-saving and efficiency advantages for the organization. The software is also convenient as it can run on the Windows computing system, making it easy to integrate into the agency’s technology platform (BMS Article, para. 1-7).Performance-based merit, equality, and fairness shall constitute the primary foundations of policies for salaries, fringe benefits, and travel expenses. All employees’ salaries shall be due for an upward review regularly based on individual performance as a measure of merit,while fringe benefits (such as health insurance and childcare) shall be available for all employees equally as a way of motivating their productivity and promoting job satisfaction (Itika49). Reimbursements for employees’ travel expenses shall apply only for the essential (non-luxury) expenditures that employees incur in travels related strictly to the organization’s business.

Bank reconciliations shall be the responsibility of three members of the accounting department within three days of reception of the bank statement at the end of each month. The staff shall also file the reconciliation summaries and supporting records for each month for subsequent reference. The selection of three members is vital to ensure that the key accounting process is not the responsibility of one employee only. The non-profit organization shall segregate three essential accounting functions – custody over assets, authorization of assets’ use, and assets’ recordkeeping – such that different employees conduct them to prevent collusion/fraud and promote oversight and review for diagnosis of errors (MaRS Discovery District Article, para. 7-8).














Works Cited

“Internal Controls in Accounting: Key Benefits”. MaRS Discovery District Article, Toronto, Canada, 2014. Web.

Business Management Solutions (BMS). “Sage 300 (Fomerly Sage Accpac)”. BMS Article, 2016. Web.

Itika, Josephat. “Fundamentals of Human Resource Management”. African Public Administration and Management Series 2. 2011. Print.

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Sample Essay on Accounting System for a Non-Profit Organization

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