Non-profit organizations to set up the accounting accounts on the issue, should implement the "private non-profit organizations accounting system", somewhat similar to the business unit accounting system, the subject classification is assets, liabilities, net assets, income, expenditure, accounting accounts are also slightly different from the business accounting standards (private non-profit organizations accounting system can be downloaded online). Financial processing, focusing on (and enterprise accounting differences):
1) no paid-in capital, received investment or donation money, directly into the corresponding income accounts, mainly, donation income, membership fee income, government grants income, income from the provision of services, income from the sale of goods, investment income, other income, and so on.
2) Expenditures are not so finely categorized, business-related are included in the "cost of business activities"; management-related are included in the "administrative expenses" (can be set up as a subaccount); "financial expenses" account in the private non-government organizations. The "finance costs" account is called "fund-raising costs" in the private non-government organizations; the expenses that are not easy to judge are all included in "other expenses".
3) Carry forward net assets at the end of the period. Net assets are categorized as "unrestricted net assets" and "restricted net assets". Currency received is "restricted" if it is designated for a specific purpose, and all others are "unrestricted". "Unrestricted".
Carrying entries:
Borrow: unrestricted net assets.
Credit: cost of business activities, administrative expenses, etc.
Borrow: endowment income, dues income, revenue from services rendered, etc.
Credit: unrestricted net assets.
Other accounts, the same bookkeeping principles and use as the accounting standards of the Enterprise Accounting Standards (EAS).
Statements are also used in the accounting statements of private non-profit organizations, with a balance sheet, a statement of business activities, and a statement of cash flows.
If a private non-profit organization pays tax, it is a business tax. In addition to operating income (service income and income from the sale of products), income from donations, dues, and government grants are all exempt from tax.