Daniel W. Elliot, CPA

  Federal, state/provincial, and municipal governments exist to enact and enforce laws which strive to ensure we remain a civilized society; they are also there to provide centralized common services and assist those who are legitimately in need.   In developed nations it is common to have a centralized pot of funds which members of society contribute to provide services such as civil protection including military, police, border, prisons, fire-rescue and healthcare. In addition to these public safety services, is infrastructure such as roads, water, and sanitation. Although there are many debates regarding providing the above more efficiently through forprofit sector, we will assume it would still require a central authority to collect and distribute funding to provide such services regardless of who in the end is delivering. In addition to civil protection and infrastructure, is social programs which is providing support and services to those members of society who are leg...

  Although there are significant differences between forprofit and not-for-profit entities when it comes to program and financial management, there are many similarities: First, forprofit delivers goods and services to make money for investors, where not-for- profit is there to deliver a good or service without an expectation of profit. However, they are both being paid for a deliverable, and if they do not meet expectations, payers may send their money elsewhere. Similar...but different. Second, from a financial management perspective, the requirement for not-for-profit organizations to have subledgers for each program is critical as funders expect you to manage and report on how you use their money; however, in forprofit, many organizations also do this in order to keep track of departmental or customer project costs. Examples include law or accounting firms who keep track of client revenue and expenses, and manufacturing firms who monitor revenue and expenses when constructing a...