Is it ideal or not, to divide spend on projects in a nonprofit organization over Feb & March, then April & May of the next FY, if FY Calendar is April to March & respective accounting too. What will be the accounting & resultant benefits if spend is divided over two FY's & vice-versa?. Pls advise. Thanks Gentlemen.
Rgds
Prakash
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Spend on projects
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Dividing project spending across two fiscal years is generally acceptable and often necessary for accurate financial reporting. The key is to use accrual accounting to ensure expenses are recorded in the period when the work was actually performed or the obligation was created, rather than just when the money was spent. Always verify this against your specific donor agreements or organizational bylaws.
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