Accounting for a non-profit organization is the process of recording, maintaining, and interpreting financial data that accurately reflects its operations. It includes tracking donations, recording expenses, preparing financial reports, and analyzing revenues and expenses according to accepted accounting principles. Non-profits use accounting to provide fiscal transparency and accountability; to guide decision making; and to maximize their utilization of resources. Accounting for non-profits requires specialized knowledge and skills, and is distinct from accounting for for-profit businesses—which means non-profits must be extra diligent in utilizing all available tools to ensure accuracy and compliance. With proper accounting systems and processes in place, your non-profit can reach new heights of efficiency and effectiveness.