(Dec. 1, 2008)
By Wayne Schulz

Accountability will be the buzzword (and goal) for most organizations over the next several years. The worldwide slowdown in economies means each dollar earned not only must go farther, but it must be properly spent and reported in order for funding to continue next year.

This makes a proper accounting system more vital than ever. If as a nonprofit organization you cannot properly classify your spending to donors and grantors, then there's a higher likelihood that funding won't re-appear in your next fiscal period.

If you're a nonprofit who has made due with regular debit and credit accounting software (aka off-the-shelf or shrink-wrapped accounting), then you may be relieved to learn that there's a whole world of software programs written entirely for the world of nonprofits.

When the amounts are small (and the economy healthy) the manner with which nonprofit organizations report their annual results is typically less rigid. There may not be any requirement to report on individual funds. When small numbers of grants are being tracked, adding new account codes each year to track one or two annual numbers may appear manageable.