Non-governmental organizations are often quite small associations and friendship societies with only few employees or without them at all, running on volunteering work. The flow of finances is usually quite small, and organizations are entitled to be non-profitable. However, NGOs as well need to keep the records on accounting, make the annual financial statements and fill up the tax announcements. The funding as well makes the careful accounting important for the associations, since the sponsors, like government or private companies, usually demand to see the records and budgets as well. Also aid functions and the sponsor money for possible aid projects and such add to the accounting work.
Good solution for a small NGO is to use the services of some accounting company, especially if the NGO is not employing any workers who would possibly do at least some of the accounting work. The case however usually is, that the money is really tight and there is no budgets to buy the accounting services and someone is volunteering for keeping the records, and only the financial statements are handed out to be produced by professional. Electronic accounting services and software's can offer as well a solution for small and poor NGO, since they are usually quite cheap, and save the valuable time of the volunteering workers.
The accounting software (in Finnish=kirjanpito-ohjelma) can usually provide easily the information needed for funders and for tax officials. They can be handy as well when electronic billing system is included, since the one of the most time consuming functions especially in small NGO is the collecting of the annual member fees.
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