Financial accounting for non-profit organizations is the practice of tracking, measuring, and communicating financial information related to the activities of an organization. It involves collecting, recording, summarizing, and reporting the financial transactions of an entity in a way that provides useful insights into the organization’s performance and its economic status. It helps to inform decisions about the allocation of resources, reveals areas of risk, and enables better management of finances. Financial accounting for non-profits allows these organizations to stay compliant with applicable regulations and ensures their financial health.