Accounting for Non-Profit Organizations is the systematic recording, reporting, and analysis of financial transactions in a non-profit organization to provide information that can be used to make decisions about the organization’s financial resources. It provides essential reports such as income statements, balance sheets, and cash flow statements to managers and other interested parties. Accounting practices for non-profits must adhere to generally accepted principles and rules that allow organizations to accurately assess their finances and performance. Proper accounting allows non-profit organizations to use their limited resources more effectively, efficiently, and responsibly.