2 Accounting Issues You Need to Understand

Sound business practices should not be abandoned simply because there is a “nonprofit” label involved. It’s said that the first pill a pharmaceutical company produces for a new miracle cure can cost $1 billion. The second one (once the research and production costs are taken care of) costs 4 cents. Neither short-term measurement, taken alone, is helpful. If you pay $1,200 in rent on June 1, do you think you paid $1,200 for one day … but received the next 29 days free? Not only is this kind of thinking meaningless, it’s downright misleading.